Merchant Cash Advance Company Review

Company Profile

Lendini is a financial services company that specializes in providing revenue-based financing to businesses. The company is headquartered in Bensalem, Pennsylvania, just 30 minutes outside of downtown Philadelphia. Lendini serves businesses located in the United States of America, excluding Utah. The company's mission is to provide businesses with fast, simple, and transparent financing solutions.

Lendini's financing model is unique in that it provides financing in exchange for a percentage of a business's future revenue. This model is particularly beneficial for businesses with unpredictable or fluctuating revenue streams, as the amount due adjusts according to the business's revenue. Lendini is committed to providing clear and straightforward responses with transparent communication, ensuring that businesses fully understand their financing options.

Products & Services

Lendini offers merchant cash advances, a model where a business receives financing based on the sale of a percentage of its future revenue. This type of financing doesn't require the seller to make fixed payments on a regular schedule. Instead, the purchaser takes a percentage of the seller's revenue until an estimated predetermined amount has been remitted.

The company does not offer small business loans or consolidation. Instead, it focuses solely on revenue-based financing. This type of financing can be a good option for businesses that are generating revenue but don't have significant assets or collateral to secure traditional financing. Estimated terms typically last between 2 and 10 months, which allows business owners to satisfy their financing quickly and avoid long-term financial commitments.

Pros and Cons

Pros:
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1. Flexible terms: The remittance of revenue-based financing is tied to a business's revenue, allowing the amount remitted each month to fluctuate based on how well the business is doing.
2. Quick access to capital: Revenue-based financing can be a faster and easier way for businesses to obtain financing compared to traditional financing.
3. Lower risk: Because revenue-based financing is tied to a business's revenue, Lendini is typically more willing to take on riskier businesses that may not be able to obtain financing through traditional channels.
4. Align incentives: Revenue-based financing aligns the incentives of the purchaser and the seller. The purchaser benefits when the merchant's revenue increases, which incentivizes them to help the merchant grow their business.
5. Customer portal: Lendini offers a customer portal where businesses can track their offers and financings in real-time, ensuring transparency and ease of use.
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Cons:
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1. Limited to revenue-generating businesses: Revenue-based financing is typically available for businesses that have a proven track record of generating consistent revenue. This means that startups or businesses that are not yet generating revenue may not be eligible.
2. Not suitable for all industries: Some industries may have specific guidelines that require a longer time in business, such as 18 months, 24 months, or even up to 6 years.
3. State restrictions: Lendini does not serve businesses located in Utah.
4. No small business loans or consolidation: Lendini solely offers revenue-based financing, which may not be suitable for all businesses.
5. Requires regular revenue: Businesses with inconsistent or low revenue may struggle to meet the repayment terms.

Ideal Customer

The right type of customer for Lendini's services is a business that has a proven track record of generating consistent revenue. This business model is particularly beneficial for businesses with unpredictable or fluctuating revenue streams. Businesses that do not have significant assets or collateral to secure traditional financing may also find Lendini's services beneficial. However, it's important to note that businesses must have been in operation for at least eight months to be eligible for Lendini's services.

Required Documentation

To apply for financing with Lendini, businesses are required to complete an application and provide three to four months of business bank statements along with standard identification. For businesses located in the State of California, four months of business bank statements are required. Additional documents may be requested based on underwriting requirements.

Industries and Restrictions

Lendini serves a wide range of industries, providing financing for businesses that have a proven track record of generating consistent revenue. However, certain industries may have specific guidelines that require a longer time in business, such as 18 months, 24 months, or even up to 6 years. It's important for businesses to consult with Lendini to understand any potential industry-specific guidelines or restrictions.

State of Operations

Lendini is headquartered in Bensalem, Pennsylvania, and serves businesses located in the United States of America, excluding Utah. Businesses interested in Lendini's services should consult with the company to understand any potential state-specific guidelines or restrictions.

Basic Qualifications

To qualify for funding from Lendini, businesses must have been in operation for at least eight months. Additionally, businesses must have a proven track record of generating consistent revenue. Lendini may also have specific guidelines for certain industries that require a longer time in business.

Collateral or Guarantees

Lendini's revenue-based financing model does not require collateral or a personal guarantee. This is a key difference between revenue-based financing and traditional loans, which may require collateral or a personal guarantee.

Alternatives

Businesses that are not eligible for Lendini's services, or are looking for alternative financing options, may consider traditional loans, lines of credit, or crowdfinancing. These options may be more suitable for businesses that have significant assets or collateral, or for businesses that prefer a fixed repayment schedule. It's important for businesses to research the various financing options available and evaluate their terms and requirements to determine which one best fits their needs and goals. Consulting with a financial advisor or accountant can provide valuable insights and help businesses make a well-informed decision.