LenCred’s core customer base is startups and small businesses. Businesses can apply for funding online or over the phone and LenCred’s staff will inform them if they qualify for loans or lines of credit, how much funding they can get, how long it will take to receive the funds, and how much it will cost. LenCred claims it has a database with hundreds of lenders and it uses its web-based program to review the lenders’ past lending history to select the lender that will be right for your business needs.
LenCred arranges funding for startups that are risky to lend to because they do not have business revenues or established credit histories. Most lenders do not fund startups or small businesses with very low revenue or sales, so LenCred may be a useful option for those types of businesses. Benefits of the service include:
You do not have to have any revenue to apply for a loan so new businesses and very small businesses may be able to find funding sources through this company.
Personal Assistance & Education
LenCred has business finance staff members who review the types of funding available to its customers. LenCred’s staff can also work with potential customers to advise them on changes they could make to increase their chances of getting loans. The company claims it has a “team of people” it will refer potential customers to should they need help fixing errors on their credit reports in order to qualify for funding.
Businesses that register on LenCred’s website can access white papers on the benefits and drawbacks of different types of credit and learn how their personal credit can impact their businesses’ ability to borrow. LenCred’s site also has a blog with educational articles on funding for small companies.
No Impact on Owner’s Personal Credit Score
LenCred performs a “soft” credit check when you initially apply for funding so it does not have an impact on your personal credit score when conducting its pre-approval of your application.
Unsecured Lines of Credit
LenCred’s offers funding options that include unsecured lines of credit so business owners do not have to put their personal assets at risk to obtain working capital funding.
LenCred is part of Ripoff Report’s paid Corporate Advocacy Program, which requires the company to make a written pledge to respond to customer complaints in a timely manner and allows Ripoff Report to mediate between the customer and the business.
Before they apply for a loan, customers should be able to access information about the rates and any fees that lenders charge who work with LenCred. With the scarce information the company includes on its site, it is not possible to determine if LenCred will identify a lender that is an affordable funding resource compared to other lenders. There is no information about any fees for loan origination, closing costs, or if there are prepayment penalties if a loan is paid off early on the company’s website. Other limitations include:
Lack of Information
There is not enough information on LenCred’s website to determine what kind of payment terms you would receive before you apply for a loan. The company does not list a range of interest rates or APRs for its loans or specify what kinds of fees it charges or what percentage of the loan amount covers its fees.
Although LenCred mentions it can help businesses apply for loans as one of the types of funding it offers, its website is heavily focused on its work obtaining unsecured lines of credit for small businesses. LenCred’s founder mentions funding with multiple credit cards is one of the options the company recommends to some of its customers.
LenCred does not provide information about how many businesses it has loaned money to or how much money it has loaned. The company also does not list what industries it provides loans to or if there are industries do not qualify for loans.
Negative Reviews about Rates
A complaint filed with Ripoff Report stated that the applicant did not realize he would be getting multiple credit cards for his funding needs and that he felt he was charged a brokerage fee by LenCred for funding he could have obtained on his own.
*Star Rating is determined by evaluating APR range, minimum credit score requirement, revenue requirement, length in business requirement, and other related approval data.