1. What is LenderMatch?
LenderMatch is a loan marketplace that provides borrowers with the optimal financing options for their unique needs. LenderMatch is a business unit of Inventous LLC, a technology company focused on online marketplaces.
2. What is the application-to-funding process?
You will either (i) complete a 5- to 15-minute online questionnaire to determine your business's eligibility or (ii) call a Loan Officer at 1-815-506-9005. Once the questionnaire is complete, LenderMatch sends a summary of the loan request, without names, to relevant lenders to receive preliminary financing terms.
If you accept preliminary financing terms offered by a LenderMatch lender, the lender will specify what additional documents, if any, are required.
If the loan is successfully processed (i.e. all supporting documents are reviewed and information is verified), we’ll email a contract for your electronic signature. The email will include bank instructions to debit payments from your business checking account.
3. Does a loan with a LenderMatch lender require a personal guarantee?
A personal guarantee is often required, but many lenders provide non-recourse loans, especially if there is sufficient collateral coverage and strong credit history.
4. How do I receive the funds if my loan request is approved?
The loan is transferred by the lender directly into your company bank account. Funding can be on the next business day if documents are submitted and the loan is approved by 5 p.m. ET, Monday through Friday (excluding bank holidays).
5. How much can I apply for?
There is no minimum or maximum loan amount. LenderMatch lenders provide microfinance loans to 9-figure syndicated loans for major projects. A Loan Officer can assess your company’s eligibility, review your estimated loan terms with you, and help you structure the appropriate loan for your specific situation.
6. Are there any industries that are ineligible for a LenderMatch loan?
Other than conducting business that is illegal in your jurisdiction, a company applying for a loan is not automatically ineligible for a loan based on the industry alone. For SBA loans, there are specific industries that are ineligible, as discussed below.
Ineligible industries for the SBA 7(a) Loan Program are the following: (i) consumer and marketing cooperatives, (ii) dealers of rare coins and stamps, (iii) gambling, (iv) government-owned organizations, (v) illegal firms, (vi) lending firms and loan-packaging firms, (vii) multi-sales distribution, (viii) nonprofits, (ix) pyramid schemes or multi-level marketing schemes, (x) real estate investment firms, (xi) religious institutions, and (xii) speculation-based businesses.
Consumer and Marketing Cooperatives
A cooperative isn’t considered a small business with a primary owner who can apply (and take on responsibility) for paying back funding. Owned by and operated for the benefit of those involved, a cooperative distributes profits and earnings among its members.
Dealers of Rare Coins and Stamps
The value of rare coins and stamps is neither fixed nor guarantee; it’s considered a business based on “speculating.” These are also considered “companies with questionable foundation.”
This refers to businesses earning more than a third of their gross annual income from gambling, such as racetracks or casinos. Good character is one of the SBA’s approval criteria, and gambling and speculation don’t fit the bill. The unpredictable nature of gambling isn’t considered a “sound business strategy;” there’s considerable doubt about debt repayment. These are also considered “companies with questionable foundation.”
They’re not considered small businesses; they’re government-funded. Also, the SBA is a government loan program, so there’s a conflict of interest.
You may not get an SBA 7(a) loan if your business is illegal in your jurisdiction. Again, according to the SBA, “the firm and all its principals must show good character.” Illegality isn’t in good character. These are also considered “companies with questionable foundation.”
Lending Firms and Loan Packaging Firms
This includes banks, factoring operations, finance and leasing companies and insurance companies. This leads to a conflict of interest/competition.
This type of business is too risky to qualify for an SBA loan.
It's an unfortunate truth, but a truth nonetheless: you can't get SBA funding if you're a not-for-profit business. Many nonprofits, while passionate, tend to lack sufficient resources and strategy. Many nonprofits also serve low-income communities, and revenue (and therefore loan repayment) aren’t guaranteed.
Pyramid Schemes or Multi-level Marketing Schemes
MLM participants are considered independent contractors, not small businesses. Therefore, they don’t qualify for small business loans from the SBA.
Real Estate Investment Firms
Property values are changeable and often inflated, and therefore considered a gamble. Also considered “speculating,” which the SBA doesn’t condone with its backing.
The SBA disqualifies organizations “principally engaged in teaching, instructing, counseling, or indoctrinating religion or religious beliefs.” Because the SBA is a government loan program, separation of church and state must be maintained.
This includes any activities that earn profits in ways other than the normal course of trade, such as oil wildcatting. Businesses based on speculation are too risky for the SBA’s taste. Besides the “good character” fail, there’s also considerable doubt concerning the borrower’s ability to repay the debt.
7. Can I payoff a LenderMatch loan early?
Most loans can be paid off at any time, but the full fee based on the original term of the loan is often applied and due at the time of payoff.
8. How long can I take to repay the LenderMatch loan?
Loan maturities typically range from 13 weeks to 5 years.
9. How do I repay the loan?
A loan from a LenderMatch lender will typically require payments every month, week or business day. Occasionally, a loan may capitalize the interest with a payment contingent upon a specific event or maturity in quarters or years.
Most LenderMatch lenders will require automatic withdrawal of payments from your business' bank account. You provide account information and select your preferred payment schedule when you sign the contract. A LenderMatch lender, at its sole discretion, may allow you to adjust your payment date and/or frequency.