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Financial technology (fintech) powers many modern business funding solutions that streamline the process over traditional lending facilities. One of the more recent options to become available is Plexe business funding.
This entirely automated financial “super app” helps small and medium-sized enterprises (SMEs) quickly and easily connect to a convenient funding solution. However, it might not be the best option for every business financing need.
This guide explores what you should know about Plexe, including the benefits, drawbacks, and application process. Specifically, we’ll answer these questions and more:
Plexe® is a fintech solution designed for small and medium businesses. Founded in 2018, the company is headquartered in Greenwood Village, Colorado. It aims to simplify financial management and new lending solutions for growing businesses by combining multiple working capital solutions into a single, innovative, revolving line of credit. Working capital loans require frequent repayment.
Plexe provides a unique lending solution that combines all working capital needs and tools for businesses. This means businesses don’t have to worry about managing multiple lending products as they only have one lending solution.
The products offered by Plexe adapt quickly to changing business needs. This flexibility allows companies to scale their financial tools as they grow. Business owners can select features that best suit their operations.
Connecting to Plexe is simple and user-friendly. After signing up, users can access a range of financial tools immediately. This quick connection saves time and helps businesses focus on what matters most: growth. Plexe has been noted for having a fast turnaround in its services.
Plexe’s revolving credit line features:
Plexe’s comprehensive lending platform combines various benefits into one solution for businesses, allowing users to access funds quickly and easily. The signup process is simple and straightforward. Once you register, you can connect your accounting software or business bank account details with ease.
Connecting your bank account details allows users to determine their maximum borrowing capacity immediately, streamlining the lending process.
The platform’s smart technology instantly analyzes your business’s financials using automated underwriting tools. The app uses automation to make approval decisions based on a holistic analysis of earning potential and your business’s credit history.
Once approved, users can withdraw funds from their credit limit right from the app. Businesses can draw as little or as much as they need up to the credit limit. Transfers initiated before 2 pm EST can hit your business bank account the same day.
Small business owners can decide between two repayment options. One option is to repay in fixed weekly payments using automated debit transfers. The second option allows repayment from a fixed percentage of weekly revenue, processed with an automatic transfer. This method means repayment fluctuates with your cash flow, which is convenient for companies with fluctuating revenue.
Plexe’s innovative products finance the following:
Future Cash Flow: This unsecured financing option is based on your business’s earnings capacity. The platform analyzes sales history and projected sales growth to determine your credit limit by ensuring your business can comfortably afford repayment from your cash flow.
Receivables and Preceivables®: This invoice finance solution allows businesses that sell on credit to convert unpaid invoices into immediate cash flow. Plexe’s industry-first product also allows companies to access partial funding before issuing invoices using any drafts, quotes, or orders. Plexe collects customer invoice payments.
Quotes, Orders, and Inventory: This option allows businesses to leverage their current inventory to access partial funding. Plexe also offers an inventory purchase order financing option. Registered users can contact Plexe directly about PO financing for inventory purchases.
Plexe doesn’t provide minimum eligibility requirements for applying. Some reviews suggest companies must have been in business for at least six months and have average monthly sales of $5,000, but we couldn’t confirm this information.
On its website, Plexe states it aims to find funding solutions for businesses of all sizes at any stage of development. Fortunately, registering is free and doesn’t require a credit check. Creating an account and seeing your available offers may be the only way to determine if your business is eligible.
The initial funding limits range from $10k to $250,000, but some reports suggest limits go up to $500,000 for established users. One of the unique features of the Plexe platform and app is that it continually updates your real-time business information. This means your credit limit may increase as your revenue increases. Plexe offers a revolving credit line that automatically grows with the business. This flexibility helps small and large companies meet their financial needs.
Unexpected cash flow challenges can significantly affect cash flow for businesses, complicating fixed loan repayments. Plexe’s flexible solutions allow businesses to choose between different repayment options to better align with their cash flow needs.
For invoice finance, Plexe doesn’t notify customers of the factoring relationship. The service is 100% confidential.
Security is a top priority with Plexe, as it utilizes industry-standard 256-bit encryption technology to protect sensitive information. Users can rest assured knowing that their username and password information for bank account or accounting software logins are not stored within the system, enhancing overall security measures.
Plexe costs can vary depending on the specific package or features you choose. Simple interest is a straightforward method of calculating interest on a principal amount over a set period, typically expressed as a percentage of the initial investment.
Users receive a full breakdown of costs before committing. Plexe charges only one fee on repayments with no hidden fees, management fees, line fees, or interest. Understanding these concepts can help you make informed decisions about financial investments and expenses.
Plexe offers a direct referral business loan affiliate program. ISOs and business loan brokers can register to offer their clients the lender’s business line of credit products.
The registration process is simple and straightforward: The first step is completing the online registration process. This only takes a few minutes and requires minimal information. The setup process for an account with Plexe is completed in minutes without credit checks or application forms. Once you register, follow the prompts to connect your accounting software or information.
The first step is completing the online registration process. This only takes a few minutes and requires minimal information. Once you register, follow the prompts to connect your accounting software or business bank account information.
If approved, the AI-driven automated tools provide a proprietary data scraping and underwriting process to instantly show your available borrowing amounts based on the provided financial data. Plexe provides continuously updated repayment terms and funding limits. You can then decide to move forward.
At this point, you can begin withdrawing funds as needed.
Borrowers can choose between different repayment plans, such as fixed monthly payments or variable payments based on income. Adhering to the repayment schedule is vital to avoid penalties or late fees.
Both repayment options use an automated weekly transfer from your business bank account. Once you make a new withdrawal and select your repayment option, all your past withdrawals consolidate with the new payment, making it easier to manage repayments. Plexe allows businesses to manage multiple past withdrawals with only one repayment schedule.
The Plexe website indicates users may be able to change their repayment method after some time. The simple interest, or advance fee, typically applies at the time of draw. Plexe doesn’t indicate if it offers an early payment discount or charges a prepayment penalty.
Plexe offers various benefits to small business owners. The most significant advantages are simplicity and speed. The app’s automation tools simplify the business funding process and help businesses access needed working capital promptly. Additionally, Plexe’s line of credit can be used for business purchases, providing flexibility to acquire essential items like inventory and supplies without withdrawing all available funds at once.
The super app also combines multiple forms of working capital financing into a single, easy finance solution. This can be very convenient for small business owners who may not have time to research each option. Plexe’s financial solutions also help manage operating expenses effectively, ensuring smooth cash flow for various purposes, including inventory and operational costs.
The platform and app provide a user-friendly interface. Flexible repayment options help meet modern business needs, and simple interest simplifies calculating what you owe. Business owners can manage only one schedule for repayments, simplifying financial management.
Unlike some lines of credit, Plexe doesn’t require minimum withdrawals. Businesses can draw from the credit line as frequently or infrequently as desired, with no minimum amounts. Plexe’s line of credit is revolving, meaning users can redraw repayments made to use the funds as often as necessary. The app also provides 24/7 access with fast transfers.
Despite the benefits, small business owners should be aware of the potential drawbacks. One of the primary disadvantages is that this type of financing is primarily meant for everyday working capital needs, such as paying rent, covering payroll, or other operating costs. This means the product likely won’t work for more extensive, long-term financing needs, such as equipment financing, commercial real estate, or expansion projects. Unlike most working capital loans, which require withdrawing 100% of available funds upon approval and reapplying for additional funds, Plexe offers more flexibility with its line of credit solutions.
Even for a working capital product, the available credit limits are lower as the initial limit maxes out at $250,000. For comparison, some working capital products can offer amounts in the millions.
While simple interest is easy to calculate, it may be more expensive than other financing options. The financing charge is a form of cash advance fee, and most business cash advances are at the high end of the cost spectrum. Fixed loan repayments can pose challenges for businesses, especially when cash flow is unpredictable, making Plexe’s flexible repayment options more appealing.
Since the company doesn’t publish interest rate ranges, comparing prices with other options is difficult. The overall lack of information on the website, especially regarding eligibility, might be a concern for some small business owners. As a newer company, Plexe doesn’t have many reviews or an extensive history with businesses. Additionally, Plexe lacks transparency and willingness to engage once the facility is operational, which could deter potential users. Some companies might prefer working with a more established funding partner.
Yes, Plexe is a legitimate business lender that offers funding solutions to small and medium-sized businesses. With transparent terms and a track record of helping businesses succeed, Plexe provides a reliable option for entrepreneurs looking to secure financing for their ventures.
Plexe doesn’t have many reviews available. It does have a Trustpilot rating of 3.1 on 27 reviews, but those are primarily from Australian businesses, where the company originated. The main way to contact Plexe is through their chat on the website, which can take hours to respond, potentially adding to user frustrations.
Positive reviews for Plexe business funding often highlight the quick and easy application process, competitive interest rates, and great customer service. Users appreciate the flexibility in loan terms and the transparency throughout the entire funding process. Several users reported that Plexe has positive experiences during the initial stages of their facilities. Overall, Plexe is praised for providing reliable and efficient financial solutions for businesses of all sizes with an excellent Plexe customer team.
Negative reviews for Plexe business funding often highlight issues such as high interest rates, hidden fees, and poor customer service. Customers have expressed frustration with the lack of transparency in the loan terms and difficulty getting timely responses from Plexe representatives. There is no customer service number for Plexe, which may further contribute to these concerns. Overall, these negative reviews suggest a need for improvement in Plexe’s communication and clarity regarding its funding options.
Plexe may decline new applicants for varying reasons, such as bad credit or limited credit history, insufficient time in business, or low revenue. Other complications might also arise during underwriting.
The company should provide written notice explaining the reasons for denying you credit. If not, or if you need more information, contact Plexe directly for clarification.
Fortunately, many alternative lenders provide working capital solutions, including cash flow financing, inventory financing, and invoice factoring. Many lenders offer other business financing options for additional needs, such as growth initiatives.
You may be interested in one of the following small business loans:
Plexe offers a unique solution for funding needs. It’s crucial to weigh the advantages against the disadvantages carefully. It can be a quick and convenient solution but has limited usage. Some users have experienced issues with changes to account information, which could complicate the user experience.
SMEs seeing quick access to working capital that can’t qualify for traditional financing may benefit from Plexe. However, companies seeking large borrowing amounts or those with credit profiles to qualify for lower-cost options would like to be better off looking for a different lender.
In addition, some small business owners might prefer a more established lender or the personal touch of working with a lending executive. Even so, the ease and convenience of the Plexe app and its funding speed help position Plexe as an innovative solution designed for modern businesses in the digital age.
Based on the available information, we rate Plexe as a 4 out of 5. It’s a viable solution for businesses seeking quick access to working capital, but lack of transparency on costs or other financing products holds it back.
Disclaimer: The Plexe trademark is owned by Plexe® and its use herein is for reference purposes only and it does not indicate sponsorship or endorsement from Plexe®.
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