LenCred is a small business loan consultancy founded in 2001 that assists startups and established business owners with obtaining capital to take their companies to the next level. I found this company online in 2011. The founder of LenCred started a blog to spread the message about the company. I stumbled upon the blog and was immediately intrigued (mainly because I thought it was nearly impossible to obtain funding for a startup business). I continued to follow the blog and eventually decided to reach out to the company to learn more about their services. I was so intrigued by the service pitch that I decided to try it out for myself. Here’s what I discovered while working with LenCred.
Funding a Startup Is Possible, No Business Track Record Needed
Funding a startup (without giving up equity) is possible. Your new business doesn’t need to have existing revenue and you don’t need to have experience as an entrepreneur. Traditional banks often require the business to be established before taking out a business loan with them. However, when you work with LenCred this won’t be an issue.
They Specialize in Unsecured Business Credit Lines
LenCred focuses on helping startup entrepreneurs obtain unsecured business lines of credit. With this type of financing you don’t need to have an existing business nor will you have to pledge collateral. Obtaining this type of funding is strictly based on your providing personal guarantee. This means all you have to do is sign on the dotted line saying you agree to pay back what you borrow, on time. You can have to the lines of credit for the life of your business (as long as you pay back on time and the lender wants to keep you as a client).
You Need Pretty Good Credit to Fund a Startup with Their Help
Obtaining unsecured business lines of credit is quite simple. I was able to get $75,000 for my own business (with LenCred’s help). The key is having a good personal credit history (or knowing someone who does that would be willing to help you). To get approved for unsecured business lines of credit you will have to meet the following criteria:
- An established credit history – at least 2 years old worth credit history (5 years is ideal).
- At least one established credit card account – the account should be at least one year old.
- No derogatory or delinquent accounts permitted.
- No recent late payments (i.e. no late payments in the last two years).
- No more than two inquiries in the last 6 months.
If you don’t meet this criteria you can also use other people’s credit to fund your business with unsecured business credit lines. Many people who don’t meet the credit criteria often find a “credit partner” to help them get the funding. If you don’t have good credit and know someone who does, you can definitely ask them to act as a credit partner for your business to access the funding.
The Average Startup Gets $30k to $50k with $250k Being the Highest Amount
When I went through the program, I obtained $37,500 using my own credit and another $37,500 using a credit partner. I’ve also referred numerous clients to LenCred that have obtained anywhere from $25,000 to $250,000 in unsecured business lines of credit. The more established your credit history is and/or the more credit partners you have, the more funding you can obtain with LenCred’s help.
Established businesses with at least $500,000 in annual revenue can obtain much more than $250,000. If you’ve been in business for at least 2 years and you meet the credit requirements, you could qualify for as much as $500,000 or more in unsecured business lines of credit.
LenCred is a Small Business Loan Advisory, Not a Direct Lender
It’s important to know that LenCred doesn’t do any direct lending (yet). LenCred is an advisory firm that specializes in helping startup and established business owners apply for (and obtain) unsecured business lines of credit to fund their businesses. They find the most suitable lenders for you and help you get the most funding possible (and at the lowest cost/interest rate). After you obtain the funding, you will be required to pay LenCred a fee for their help. The fee you pay depends on the amount of funding they help you obtain.
Why Working with LenCred to Obtain Capital for Your Startup Is a Good Idea
I’ve been an entrepreneur for over a decade now and I know how difficult it can be to [try] to do everything on your own. You save so much time and money by working with experts like LenCred. When you work with LenCred you experience the following benefits:
- Unsecured business lines of credit with 0% interest for up to 2 years – Just about all of the unsecured business lines of credit I obtained with LenCred’s help had 0% interest for the first two years. That means I was able to borrow the money without paying any interest.
- They get you the maximum amount of funding you qualify for – When I tried getting funding on my own, I often got low offers (under $25k). LenCred was able to help me obtain a larger amount of unsecured business line of credit funding than I was able to obtain on my own. I ended up with $75,000.
- You can separate your personal credit from your business credit – Obtaining business lines of credit enables you to start building a business credit profile. Your business credit history can be reported to Dun & Bradstreet, Equifax Commercial and Experian Business. Building business credit early will help you obtain more funding in the future (without using your personal credit history).
- You can get the funding in as little as 30 days – I got approval notices within 7 to 14 days of applying for the credit lines. It took another two weeks for me to get the funding. The whole process took no more than 30 days. So if you need funding in the next 30 days, LenCred can help you reach that goal.
- You can get the funding without supplying a lot of documentation – I only had to supply articles of incorporation and proof of my tax ID. The lenders didn’t ask for any other documentation (since this is unsecured financing).
The Bottom Line is This – It’s Simple
The funding process with LenCred is simple and fast. This is what I like most about it. After you get the funding, LenCred also assigns you to a Funding Coach to guide you on how to get the most of the funding you just received. The lightning fast process and the ongoing help I received after the funding was obtained is what drove me to write this article. All startup entrepreneurs can benefit from having access to quick funding and a coach that will give you advice on how to properly use it.
She has spent the last decade assisting entrepreneurs with starting new businesses, obtaining startup and working capital and growing their customer base using various digital marketing strategies.
She enjoys writing about her experiences as an entrepreneur and using data and information from reliable sources to back up what she writes about. Through her writing she aims to educate other entrepreneurs on how to obtain capital and build successful businesses doing what they love.