Credit Key is a point of service payment option that will allow a B2B merchant to give customers the option to extend payments while still getting their funds quickly. Our Credit Key review is designed to help you make your best business decision.
What is Credit Key and How Does it Work?
Credit Key is an option that businesses, selling to another other small business or mid-sized business, can use to offer extended payment options to their customers who may be unable or unwilling to pay cash.
It functions as the lender, or creditor, issuing the credit accounts for eligible purchases.There are two ways a business can get a Credit Key account. First, the business you are buying from may offer Credit Key as a payment option.
In this case, customers fill out the credit application at checkout and get an approval decision within two minutes.
For example, where you normally see the option to pay by credit card, debit card, or PayPal, you would also see the option to use Credit Key. Choosing that option would take you to the application.
Alternatively, if you as a business want to apply for an account to use when making purchases from other businesses, you apply on the Credit Key website.
If approved, customers may choose terms from 30 days to 12 months. The seller receives their payment within 48 hours.
After account opening, customers will receive instructions on how to set up their bank account in the system for the purpose of making payments.
Pros of Credit Key:
There are two sides to the benefits of Credit Key. On the one hand, there are many benefits to the buyer. Then of course, what benefits the buyer benefits the seller also, because it means more business. The result is, all the pros are pros from the seller point of view regardless in our Credit Key review.
Ability to Increase Sales
According to Credit Key, “Credit Key merchants have witnessed up to 10x increase in Average Order Value (AOV) and 250% increase in conversions.”
It’s easy to see, since customers who may not be able to pay immediately for a purchase could be more likely to buy if they have the option to pay over time. Credit Key offers that option.
Get Your Money Quickly
You as the seller get your full funds in 48 hours or less, even as your customers are making payments.
This eliminates the need to carry a large amount of accounts receivable, and allows you access to your revenue quickly.
Low Interest Rates for Customers
Accounts paid within 30 days will have no interest. After that, rates can be as low as 1% depending on the creditworthiness of the customer.
Creditworthiness is based on a soft pull of the customer’s FICO report. As a result, the FICO score is not affected by the application. This is simply a way for Credit Key to check the credit history of the applicant.
That benefits your customers as these are much better rates that most credit card companies offer, even to those with excellent credit scores.
As a result, your customers are more likely to purchase, as they are more likely to get lower interest rates.
Low Credit Score Requirements
The minimum credit score for approval with Credit Key is 600. This is much lower than what many credit cards and other types of trade credit consider to be a good credit score.
That means more of your customers will qualify, thus further increasing sales.
Cons of Credit Key
There aren’t a ton. They have an A+ rating with the Better Business Bureau. When I write a review, I always go there and read complaints, but in the case of this Credit Key review, there is only one complaint.
Refunds Aren’t Necessarily Fast
The one complaint on the BBB website was related to refunds. Basically, Credit Key is taking payments from your account, and if you later decide to return a product or cancel a service, the seller has to issue a refund before Credit Key can refund payment.
This process isn’t automatic. It can take some time. That was the problem addressed in the complaint, which Credit Key responded to appropriately.
If you have a credit card, you could have the opportunity to earn rewards, depending on what your specific card offers. Credit Key does not offer rewards.
Doesn’t Help Increase Business Credit Score
As far as I can tell, Credit Key does not report payment to any business credit bureau.
So, while this is a great credit line to have, it won’t do much for you as far as adding a reporting account to your business credit report.
Lack of Flexibility
If you are comparing it to a credit card, perhaps the fact that it isn’t as flexible would be considered a con. You cannot use it at grocery stores or to make a balance transfer.
Credit Key Review: Is It Worth It?
It seems so. Sellers can make more sales and serve more customers than they would be able to otherwise, while still getting their money within a reasonable time period.
Borrowers can get access to loan amounts in the form of a credit line with a credit limit up to $50,000 subject to credit approval. This may allow access to products and services they would not be able to purchase otherwise.
Not only that, but they can do so with a credit score as low as 600, and if they happen to have really good credit, they can get interest rates as low as 1%.
This is a line-of-credit, so of course it’s debt. However, since it is no more than 12-months, it is short term debt with potentially very low interest rates, no foreign transaction fee, and no annual fee. That makes it lower cost than credit card debt.
They appear to have good customer service as well.
If you need to pay for a product or service that will benefit your business, it’s definitely a good option to help you do that.
If you are a business that wants to offer customers the option to pay over time, this is the way to do it. You just get your money, and Credit Key takes care of the rest.