To learn more about Lendesca, please continue reading:
Small business owners and self-employed individuals often face significant challenges in securing funding. Traditional lending institutions may have stringent requirements that many find difficult to meet, leaving them searching for alternative solutions.
Lendesca, an online lender, aims to bridge this gap by providing accessible, specialized financial services and a transparent process tailored to the unique needs of this audience. While Lendesca’s innovative approach makes it a good fit for many, weighing the potential risks and limitations is essential.
This review explores everything you need to know about Lendesca, including how it works, its loan options, benefits, drawbacks, and application process, to help you determine if it’s the best source for your business and financial needs. Specifically, we’ll answer these questions and more:
Lendesca is a financial technology company dedicated to helping small businesses and self-employed individuals secure funding through tax credits and loans. The platform understands the unique financial needs of its target audience and offers specialized loan solutions designed to address those challenges.
With Lendesca, business owners can access capital quickly, providing the crucial financial support needed to manage expenses, invest in growth, or recover from setbacks. Whether it’s funds for equipment, working capital, or acquisitions, Lendesca’s tailored approach aims to empower business growth and financial stability.
Lendesca operates as a “neobank” financial technology company specializing in providing innovative solutions for self-employed individuals, 1099 contractors, sole proprietors, and small business owners. The following sections detail their loan programs and how they work:
Through Accounts Receivable Financing, Lendesca helps businesses turn unpaid invoices into working capital. This option is particularly helpful in preserving cash flow when customers take longer to pay. By providing funds against those receivables, businesses can pay immediate expenses instead of waiting for invoices to process.
For entrepreneurs, Lendesca’s Startup Loan provides the capital to launch new ventures. These loans cover up-front expenses like inventory, marketing, and office space. They allow companies to launch successfully equipped with the resources they crave.
Business Acquisition Loans offer funding to cover the sale price and related expenses when purchasing an existing business. This is particularly useful for entering new geographic markets or acquiring competitors.
Equipment Financing enables businesses to acquire machinery or technology without large upfront payments. With flexible terms, companies can spread costs over time and avoid further disruptions to business as usual.
A Merchant Cash Advance provides fast cash based on future credit card sales. This choice meets the needs of businesses that experience seasonal or other revenue swings, allowing fast access to money without rigid monthly repayment structures.
Business Term Loans are straightforward, offering fixed amounts with predictable repayment schedules. These loans are ideal for funding long-term aspirations such as home improvements or major purchases.
For immediate needs, Short-Term Loans offer quick funding with shorter repayment periods. This flexibility is important for addressing financial gaps or unforeseen costs.
Lendesca’s SBA Loans stand out for their long terms (10-30 years), competitive rates, and high limits of up to $5 million. Backed by the federal government, these loans lower lender risk, putting them within reach of qualified small businesses. Applicants need to demonstrate equity investment and exhaust other avenues before applying.
Finally, a Business Line of Credit offers revolving funds, providing flexibility for managing cash flow or handling seasonal demands.
Lendesca’s qualifications depend on the loan product. Here are the minimum qualifications for each financing option:
Accounts Receivable Financing:
Startup Loan:
Business Acquisition Loan:
Equipment Financing:
Merchant Cash Advance:
Business Term Loan:
Short-Term Loan:
SBA Loans:
Business Line of Credit:
Lendesca understands the unique financial challenges that self-employed individuals and small businesses face, offering tailored solutions to meet these needs. Their loan products are designed to provide a simple and efficient application process, ensuring quick access to the funds necessary for various business operations. The Lendesca team is dedicated to helping clients achieve their financial goals through expert guidance and a comprehensive range of resources.
In addition to their loan services, Lendesca assists self-employed individuals in recovering tax credits, such as the federal Sick and Family Leave tax refund (SETC & FFCRA), which remains one of the last pandemic-era relief programs available. This commitment to supporting financial stability demonstrates Lendesca’s understanding of its clients’ needs.
It’s important to note that Lendesca is a financial technology company, not a bank. Community Bank & Trust, N.A., Member FDIC, provides banking services. The Lendesca® Debit Card is issued by The Bancorp Bank, N.A., pursuant to a license from Visa U.S.A. Inc., and is accepted wherever Visa debit and credit cards are recognized. With its tailored solutions, Lendesca positions itself as a valuable partner for self-employed individuals and small businesses seeking financial security.
Lendesca does not publish information about a business loan affiliate program. ISOs and business loan brokers should contact the lender directly to discuss partnerships.
The application process for Lendesca is straightforward:
Navigate to Lendesca’s official site and explore their loan options to identify the best fit for your needs.
Fill out the application form with your business details, including financial documentation and tax returns.
Upload required documents to verify your eligibility and provide proof of business operations.
Once approved, review the loan terms and finalize the agreement.
After completing the process, funds will be disbursed to your account.
After securing funding, Lendesca continues to support businesses through a well-structured repayment process. Borrowers benefit from clearly defined repayment schedules, ensuring manageable and predictable payments. Lendesca offers early payoff discounts, allowing businesses to reduce overall costs by paying off their loans ahead of schedule. Additionally, no prepayment penalties enable borrowers to manage their accounts without incurring extra fees.
Lendesca also offers funding renewal opportunities, enabling businesses to access additional capital as they grow or encounter new financial needs. This ongoing support ensures that Lendesca remains a reliable partner for businesses at every stage of their financial journey.
Lendesca offers a range of benefits designed to meet the specific needs of self-employed individuals and small business owners. Their streamlined application process ensures quick access to funding, allowing businesses to address urgent financial needs without unnecessary delays.
The company provides tailored loan options, including programs for recovering tax credits, which help businesses maximize their financial potential. With no prepayment penalties, Lendesca allows borrowers the flexibility to repay loans early, often with cost-saving benefits.
Additionally, their knowledgeable team of financial experts offers personalized support, helping clients navigate complex financial decisions and achieve long-term stability. By focusing on the unique challenges of small businesses, Lendesca positions itself as a trusted partner in business growth and financial management.
Despite its many advantages, Lendesca has some limitations. For many products, the company requires a minimum of 24 months of business operations and annual revenue of $175,000, which may exclude newer or smaller businesses from qualifying for loans.
Additionally, Lendesca’s focus on specific financial solutions may not offer the flexibility some businesses require for unconventional needs. While It provides valuable resources for self-employed individuals, its reliance on tax credit recovery as a funding option might not appeal to all businesses.
Furthermore, borrowers should be prepared to provide detailed financial documentation, including tax returns and financial statements, which could be time-consuming for some applicants. These considerations highlight the importance of assessing whether Lendesca’s offerings align with your specific business needs.
Pros:
Cons:
Yes, Lendesca is a legitimate lending platform. It’s a trusted financial technology company that partners with established banking institutions to ensure secure and compliant operations.
Lendesca is relatively new and doesn’t have many online reviews available as a result. It has a 4.1 out of 5 on Trustpilot and a 3.6 out of 5 on Google reviews.
Positive reviews frequently emphasize the simplicity and speed of the application process. Customers often praise Lendesca for its knowledgeable and responsive support team, which is seen as instrumental in guiding applicants through loan approval. Borrowers also value the tailored loan solutions, especially those designed to help recover tax credits, and appreciate the absence of prepayment penalties, which adds flexibility to repayment options. Many reviewers describe the overall experience as professional, seamless, and supportive.
On the other hand, some negative reviews point to specific challenges. Common criticisms include the strict qualification criteria, which may exclude smaller or newer businesses, and the detailed documentation requirements, which can feel burdensome for applicants. A few reviewers also mention that Lendesca’s focus on specific financial products might not meet the broader needs of all businesses. Despite these drawbacks, even critical reviews often acknowledge Lendesca’s transparent terms and clear communication throughout the process.
Lendesca may deny a business loan application for several reasons, including credit scores, time in business, or revenue. Other issues, such as a lack of financial documentation, can also result in denial.
If you were declined, the denial letter should explain why and include information on improving your application and when you can apply again. If not, or if you require more information, contact Lendesca directly.
Fortunately, small business owners have many lender options to consider if Lendesca isn’t the right fit. Many lenders and small business loan marketplaces provide access to diverse loan options. You may be interested in one of the following small business loans:
Lendesca is a viable solution for self-employed individuals, independent contractors, and small business owners who may not qualify for conventional business loans. Its focus on the financial needs of the self-employed helps set it apart in the business lending space.
However, many of its loans require strict qualifications compared to other alternative lenders. In addition, well-qualified business owners could likely qualify for lower-cost options.
Based on the available information, we rate Lendesca as 4 out of 5. Its diverse loan options are excellent, but the stringent qualifications are a concern.
Disclaimer: The Lendesca® trademark is owned by LENDESCA LLC. and its use herein is for reference purposes only and it does not indicate sponsorship or endorsement from LENDESCA LLC.
Fraud Disclosure:
Please be aware that individuals have been fraudulently misrepresenting to business owners (and others) that United Capital Source, Inc. (“UCS”) can assist small businesses in receiving government grants and other forgivable business loans, when in fact those grants or loans do not exist or are not available. These individuals have ulterior motives and are engaging in the unauthorized use of the names, trademarks, domain names, and logos of UCS in an attempt to commit fraud upon unsuspecting small business owners.
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