The LenCred application process begins with filling out an online form. The form requests basic information:
- How much funding you’re seeking
- Your contact information
- Your personal credit rating, expressed in general terms such as poor, fair, good or excellent
- How long you’ve been in business
When you apply, you also give LenCred consent to contact you by telephone or messages.
Filling out this online form won’t affect your credit rating at this point. LenCred only does a “soft pull” on your credit, which doesn’t get recorded on your credit report and doesn’t hurt your score. However, if you continue beyond this step and apply for offers from lenders in LenCred’s network, these lenders will check your credit score. This will generate multiple “hard pulls” on your credit, which get recorded on your credit report and can lower your credit score, according to third-party reviewers and the Better Business Bureau.
Before you apply for offers from its partners, the LenCred walks you through a funding consultation with one of their business financing advisers. This consultation will include a review of your credit rating and suggestions on how to improve your creditworthiness. LenCred’s site includes information on how to improve your credit rating.
After your consultation, LenCred will match you to offers that fit your credit score. If you decide to apply for an offer, your prospective lender will do a hard pull on your credit report, and you will need to submit supporting documentation. If you prequalify, LenCred will contact you with an offer.