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 Payments get withdrawn daily Monday through Friday until your debt is repaid.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.