Because Lendini collects repayment from your future receivables, the lender is willing to work with business owners who have been in business for at least 3 months or have low personal credit scores as long as they are generating sufficient revenue. Lendini offers an expedited approval process, boasting preapprovals in less than 3 hours for many applications.
However, Lendini doesn’t disclose its repayment rates. This makes it advisable to explore other lenders before approaching them so that you have some numbers for comparison.
Consider Lendini if you:
- Have been in business at least 3 months
- Generate at least $7,500 a month in gross sales
- Have a low credit rating
- Have explored other financing options
Lendini Small Business Financing
Lendini’s funding involves cash advances, not typical loans. Specifically, Lendini offers two types: business cash advances and merchant cash advances.
Business Cash Advance
Lendini’s business cash advance product provides a lump sum payment that you agree to repay by giving Lendini a fixed percentage of your future accounts receivable. Payments get withdrawn daily Monday through Friday until your debt is repaid.
Merchant Cash Advances
Lendini’s merchant cash advance works in a similar way. However, instead of coming out of your accounts receivable, a merchant cash advance comes specifically out of your future receivables for credit card transactions. Each time you process a batch of credit card receipts, Lendini gets a percentage, until your debt is repaid. This version of Lendini’s product is geared toward merchants who do a large portion of their business with credit card transactions. You’ll need a preapproved credit card processor to use this product.
Both types of cash advances feature:
- Funding in amounts from $1,000 to $250,000
- Factor rates (instead of interest rates), meaning you repay a fixed multiplier or percentage of the amount you borrowed on top of the original amount
- Qualifying preapprovals in less than 3 hours in some cases
- Next-day funding for approved advances
Business owners considering Lendini funding should be aware that they use factor rates instead of interest rates. Whereas repayments based on interest rates vary with the amount of principal you still owe on a loan, factor rates charge a predetermined flat fee based on a percentage or multiplier of the amount borrowed. For instance, if you borrow $250,000 at a factor rate of 20%, which can also be expressed as a multiplier of 1.2, you would need to repay $300,000.
Lendini Lending Experience
The Lendini application process has 4 steps:
- First, you submit a 5-minute application providing basic information about your business finances and personal credit score
- Next, Lendini reviews your application
- Lendini then replies with a preapproval or denial of your application and extends an offer if you qualify
- After you select an offer, the final approval process begins
Once you create an account with Lendini, you gain access to a merchant portal where you can upload documents, view available offers and track the progress of your funding.
According to Lendini, 9 out of 10 submitted applications get preapproved within hours. If you are approved, funding typically becomes available within 24 to 48 hours. Funding becomes available in 24 hours or less if all required documents and contracts have been received and submitted.
Pros of Lendini
Lendini has a few advantages in its favor:
- Two types of cash advance options
- A willingness to work with new companies and business owners with poor credit ratings (provided they have sufficient revenue)
- Fast prequalification and approval processes
Cons of Lendini
However, there is a lack of transparency regarding:
- Factor rates
- Additional fees
- Prepayment penalties
- Whether the application process affects your credit report and credit score
Requirements for Lendini
If you wish to apply for a cash advance, Lendini spells out a couple of minimal requirements:
- Time in Business 3+ Months
- Annual Revenue $90,000+ (or $7,500/Month)
Lendini’s website doesn’t advertise a minimum personal credit score requirement, stating it accepts poor and bad credit. The lender doesn’t disclose whether it does a “soft pull” on your credit, which doesn’t appear on your credit report and doesn’t affect your credit score, or a “hard pull,” which does appear on your report and can lower your score.
Online Lendini reviews include 1 verified customer reviewer complaining that Lendini did 7 hard credit pulls in 1 day, potentially adversely impacting the client’s credit score. Other reviews echo similar concerns.
What You Need to Apply
Lendini’s website doesn’t provide specific details about what documents you need to apply, stressing it requires “minimal documentation.” Based on the information they do provide, you can be expected to submit:
- Proof that you have been in business for at least 3 months
- Proof that you are generating at least $7,500 in monthly revenue
If you are applying for a merchant cash advance, you will need to be working with a preapproved credit-card processor.
Final Say: Lendini Funding Reviews
Lendini’s policy of extending cash advances to companies based solely on revenue may seem appealing for new entrepreneurs or business owners with low personal credit scores.
However, Lendini’s lack of disclosure about its terms, rates, fees and application process makes it difficult to discern how the company stacks up against other lenders.
We recommend you first explore other lenders with more transparent rates so that you can make an informed comparison if you do consider Lendini.