Frequently Asked Questions

Lendza is a website that offers hassle-free financing for small businesses. With a team of professionals who all have experience in the financial industry, we help you find funding even if a bank has already turned you down. We aim to reduce the risk small businesses face, helping them find providers through a quick and straightforward online process suitable for any financial situation.

No. We are not a small business funding provider. Instead, we have direct relationships with reputable loan providers and offer a safe and simple loan request form to help you connect with them.

Those connected to a business funding provider in our network may ultimately receive one of the following financial products:

• Accounts Receivable Financing
• Bad Credit Business Loans
• Business Line of Credit
• Equipment Financing
• Merchant Cash Advance
• Short Term Business Funding
• Startup Funding
• Traditional Term Business Funding

The answer to this question depends on what kind of loan you want. We recommend researching different types of small business loans. If you're having trouble deciding on a loan type, consider going with one that offers low interest. However, it is crucial to know that this sometimes means taking on more risk. Secured loans sometimes have lower interest, but if you cannot pay back the loan, then you might have to give up whatever collateral you secured the loan with. In extreme cases, that could mean that you lose your business.

There are multiple ways to earn money to fund your small business. A few options include:

• Crowdfunding - Numerous crowdfunding websites have helped entrepreneurs and inventors support and build their startups. Kickstarter, Indiegogo, and Fundly have gained popularity over the last few years, to name a few. Each crowdfunding site has a unique platform through which business owners can choose how they want to fund their business. For example, Indiegogo allows owners to keep all the money they raise, despite not meeting their goal. 
• Friends and family loans - Close relatives and friends can also lend a helping hand and invest in your business. However, it is best to sit down and discuss the benefits and potential disadvantages of this option, as money can affect relationships with those closest to you.
• Banks - Locally owned banks are a helpful resource for businesses as they are often interested in building the local economy. Even if you do not qualify for a loan, speaking with someone at a bank can help you understand how to become eligible for a loan in the future.  
• Online lenders - Online lenders provide fast funding for those who are in immediate need of a loan and cannot attain one with a traditional bank. They are most beneficial for owners dealing with poor credit. One factor to consider when taking out this loan is the interest rate lenders charge.
• Credit unions - Credit unions offer loans approved by the SBA (Small Business Administration). However, you will most likely have to be an active member of a credit union in order to qualify for a loan.

1. You start by filling out our form by inputting your personal information for the providers to see. Our latest data-encryption technology ensures the safety of your data.
2. After you submit the form, we will start looking for a funding provider. Our extensive and diverse network may provide you with a chance to connect with one of our reputable providers.
3. If we find you a provider, our job is done. You will be in good hands if you choose to start working with the provider.

The fee may vary from provider to provider. Filling out the request form on our website is free.

Yes. We use 256-bit encryption to keep your data as safe as possible.

No, we do not use a hard credit pull on our end. However, the provider will need to review your credit before providing you with funding, and they may conduct a hard pull as part of their qualification process.

You can use the Lendza loan request form to request anywhere from $5,000 up to $350,000.

The interest varies by lender. We cannot give you a quote on your loan, as we are not a lender. If you are able to receive a loan offer from a lender, we recommend reading over the interest and fees outlined in your loan agreement.

You will see the results of your loan request within a few minutes.

There are many different types of small business funding options, each with unique requirements. There are, however, standard (though not inclusive) requirements you should be aware of:

• Be a U.S. citizen.
• Be at least 18 years of age.
• Have an address, phone number, and email address.

The provider may consider the following when choosing whether to work with you:

1. Credit score - Lenders may examine your personal and business credit score to see if you can take on a loan. If you are already in business, you may need to submit a credit report for your company.
2. Potential collateral - If you choose to apply for a secured business loan, you may need to use an asset to back your loan against default. Assets include equipment, inventory, or real estate.
3. Annual revenue - Lenders often require that businesses bring in an annual revenue greater than $50,000.
4. Net operating income - To show you can make your payments on time, you may need to show revenue that is at least 1.25 times greater than your expenses.

The lender may look at some use these factors to calculate the rates you’ll pay on your loan:

• The type of loan you need
• Your business credit rating
• How long your business has been active
• How successful your business is
• Whether you're securing the loan or not
• State and federal regulations

This list is not all-inclusive, and your loan provider may use other factors to calculate your interest rate and fees.

It depends on the type of loan you’re trying to get. Some lenders require a high personal credit score as well as a high business credit score, but others do not. Yet, some of the SBA loans are designed for small businesses that wouldn’t be able to get traditional funding because of their personal or business credit score.

If you have poor credit, you will likely end up paying more in interest and fees. You'll also probably have fewer loan options to choose from; however, it doesn't mean you have no options.

If you think your business credit will affect your chances of attaining a loan, see if you qualify for SBA loans geared toward struggling businesses. This type of loan may require you to take classes. These loans generally take longer to apply for than other types of loans. If you need money sooner rather than later, this type of loan isn't always a viable option. But if you have the time and think you can qualify, this is the route you should take.

Businesses that have been around for less than three months are usually considered startups. Loan providers may request your financial history from the last three months. It can be a point of conflict if you are trying to fund a startup, as small business loans are meant for businesses that have already established themselves. A startup brings its unique risks that are better addressed by a different financial product. You can find more information on startup loans.

Each provider has different policies regarding defaults, so you will have to check with them when getting the loan.

A small business grant is different from a loan in that you don't have to pay the money back. This type of funding is very competitive. When applying for small business grants, there are a few things you should be aware of:

• You may have to match the grant with your own money, meaning that you may have to take out a loan to qualify for the grant.
• There are scammers out there that pose as grant providers and try to steal your financial information.
• Many grants come with strings attached.

While this type of funding seems ideal at the surface level, it gets a lot more complicated when you learn about the application process and logistics of the grant. If you do decide to apply, we recommend going with a provider with a solid reputation, like a government organization. Then, make sure you don't agree to anything that may hurt your company down the road.

Yes. You can use this calculator to estimate your business capital eligibility based on the Debt Service Coverage Ratio.