Have you been contacted by Lendini about your business debt? Dealing with lenders can be a complicated and stressful process. We’ll walk you through how to deal with business lenders, including whether Lendini is a legitimate lender, what to do if they contact you, and how best to protect your business.
Who is Lendini?
Lendini is a business lender that specializes in offering revenue-based financing to growing businesses in all 50 states. Before you apply for a business loan from Lendini, make sure you understand the product it offers and how the company operates.
Is Lendini Legitimate?
Yes, Lendini is a legitimate lender. It’s been in business for more than a decade. In its years in business, Lendini has financed nearly $1 billion in loans. While Lendini is a legitimate company, it’s still important to think carefully before working with them. Revenue-based financing, which is the type Lendini offers, presents some risks to borrowers.
These lending products, which include merchant cash advances (MCAs), come with high fees and usually short repayment schedules. They can lead to borrowers stuck in a cycle of debt they can’t get out of.
Overview of Lendini
Lendini, which is owned by the data analytics and financial services company Funding Metrics, LLC, was founded in 2014. The Pennsylvania-based business markets itself as offering flexible financing solutions in the form of revenue-based financing for businesses in all 50 states. According to Lendini, it serves companies that may be unable to access working capital through traditional funding methods.
Lendini’s parent company, Funding Metrics, LLC, specializes in alternative funding. It uses data analytics to offer lending products to small businesses. It claims its analytics process allows it to bypass traditional underwriting standards to offer loans to otherwise underserved companies and businesses with limited credit and history.
Lendini Reviews and Complaints
Lendini and its parent company, Funding Metrics, LLC, aren’t accredited by the Better Business Bureau (BBB). Funding Metrics has an A- rating from the BBB, with an average customer rating of just 1 out of 5 stars. Lendini’s Trustpilot rating is only slightly better, with an average rating of 2.3 out of 5 stars.
Funding Metrics also has several complaints with the Consumer Financial Protection Bureau (CFPB). Customers complain of issues repaying their loans and unethical collection practices, to name a few.
Understanding How Lendini Operates
Lendini offers revenue-based financing, such as merchant cash advances. This type of alternative business financing offers small businesses funding based on their future revenue rather than their credit histories.
Revenue-based financing differs from traditional financing in that it doesn’t have a set repayment schedule. Instead of making fixed payments, the lender withdraws frequent payments, often daily or weekly, as a percentage of your business revenue or credit card sales. Most of Lendini’s repayments last between two and 10 months.
Rather than charging interest, Lendini charges a fixed fee (usually called a factor rate). This fee is based on a percentage. Lendini doesn’t disclose its factor rate, but they usually range from 1.1 to 1.5 industry-wide.
Lendini’s loan amounts range from $5,100 to $300,000. While financing speed varies depending on the business and application, Lendini claims that some businesses can receive their funding the same day they’re approved.
Dealing with Lendini
As a borrower of Lendini, it’s important to understand what to do if you’re contacted by the company about your unpaid debt.
What Should I Do If I Receive a Letter or Call from Lendini?
If you receive a letter or phone call from Lendini, make sure it’s really the company contacting you. Yes, Lendini is a legitimate company, but there are plenty of scams in the financial industry, so it’s important to make sure you know who is contacting you.
Once you’ve confirmed it’s Lendini contacting you, find out why they’re contacting you. If they’re contacting you about your unpaid debt, request a debt validation, which the company should provide in writing along with a paymen history and balance of the debt they claim you owe. If you’re being sued by Lendini, consider hiring a merchant cash advance attorney to represent you. Legal professionals that specialize in business debt resolution have the experience and know how to resolve this kind of debt the right way
Handling Communications From Lendini
It’s important to keep copies of all of your communications with Lendini. If you receive emails or letters, maintain copies of them as records. And if you speak to someone from Lendini on the phone, take detailed notes about your calls, noting the name of the person you speak with, the name and date of the conversation, and what you speak about. If Lendini sues you, these records could be helpful in preparing your defense or negotiating a settlement.
Knowing Your Rights Against Lendini
While business loans, especially revenue-based financing, don’t offer as many rights as consumer loans, you still have some rights as a business owner. Here are some rights to keep in mind:
- Transparent terms: You have the right to clear and transparent terms about your revenue-based financing agreement, including the loan amount, interest and fees, repayment terms, and anything else relevant to your loan.
- Fair treatment: You have the right to fair treatment from Lendini. Your lender can’t discriminate against you based on your race, religion, nationality, gender, marital status, age, or disability.
- Recourse: Lendini must correct any errors in your account in a timely manner. And if Lendini treats you unethically or breaches your contract, you have the right to legal recourse.
- Legal representation: You can hire a business debt relief attorney at any point in your dealings with Lendini. Once you’ve hired a debt help attorney and notified Lendini, they must communicate with your attorney.
The Legal Side of Lendini
Common Legal Issues With Lendini
Revenue-based financing, which can include merchant cash advances, can cause plenty of legal issues for borrowers. First, because of the complex terms of these loan agreements, they may result in disputes over repayment terms, including fees. Because these financing agreements aren’t regulated in the same way as other business loans, there is more room for legal gray area.
Revenue-based financing can also cause repayment issues for borrowers. MCAs have notoriously high fees and short repayment schedules. These factors combined can lead to a cycle of debt for borrowers, forcing them to take out new financing agreements to pay off the original ones.
If you stop paying on your revenue-based financing, Lendini may take legal action against you, which could result in wage garnishments and other judgment orders to collect the debt you owe.
What Happens If You Get Sued By Lendini
If you’re sued by Lendini, you’ll get a summons and complaint, that lays out the lender’s legal claim against you and request that you respond by a certain date. Be sure to act quickly if you receive a complaint from Lendini to avoid having a default judgment against you. Here’s what you should do if you find out you’re being sued by Lendini:
- Review the complaint: Read the complaint thoroughly to make sure you understand Lendini’s claims against you. If necessary, compare it to your own records to ensure it’s accurate.
- Seek legal advice: Before taking any next steps, it’s worth considering hiring an attorney to represent you. A debt relief attorney will understand how the complaint process works, can negotiate with your lender, and, if necessary, can represent you in court.
- Respond to the complaint: Make sure to respond to the complaint by the date listed (usually within 20 to 30 days). If you don’t respond in time, the court may issue a default judgment against you.
- Discovery process: The discovery process is when both sides exchange relevant information and documents related to the case. If you hire an MCA attorney, they will handle this part for you.
- Negotiation and settlement: In many cases, you can negotiate an MCA settlement with your lender before going to court. If you can settle, you could end up paying less than your original balance.
- Trial: If you aren’t able to settle with Lendini, you’ll have to go to court and will have the opportunity to present your case. You will have the opportunity to present any counterdefenses at this time.
- Judgment: Once the trial is complete, the court will issue you a judgment, which may require you to pay the balance you owe to Lendini. There may also be an order for wage garnishment or another collection order.
How to Negotiate with Lendini
Check to Make Sure Lendini Isn’t a Scam
We’ve already mentioned that Lendini is a legitimate company, but it’s important to make sure the letter or phone call is legitimate before you try to negotiate. Unfortunately, the financial industry is a frequent target of scams. It could be that a different person or company is contacting you pretending to be Lendini, possibly to collect payment from you.
You can confirm it’s Lendini by looking at the contact information on the letter or email and making sure it matches the information on the lender’s website. If you still aren’t sure, you should call Lendini using the phone number listed on its website to confirm.
Strategies for Negotiating with Lendini
It’s usually in your best interests to try to negotiate a settlement rather than going to court. When you’re preparing to negotiate, take stock of how much you owe Lendini and how much you can afford to pay, either as a lump sum or an installment plan.
It may be worth hiring an attorney that has experience negotiating with Lendini to negotiate with Lendini. While you’ll have to pay for the attorney, the money they can save you with a settlement can more than make up for your attorney’s fees and the benefits to the business will far outway the legal costs.
Finally, get everything in writing during the negotiation process, especially if you and Lendini come to an agreement. This documentation could be important later on.
How to Protect Against Lendini
Steps to Take If You’re Contacted by Lendini
As a quick summary, here’s everything you should do if Lendini contracts you about your unpaid debt:
- Verify it’s from Lendini: First, make sure it’s really Lendini calling or mailing you. Confirm the contact information or contact Lendini directly.
- Ask for debt validation: If you don’t believe the debt information is correct (or that it’s your debt at all), request debt validation from Lendini.
- Consult an attorney: If you’re being sued by Lendini, consult an experienced debt help business attorney who can advise you on your case, negotiate a settlement, or represent you in court.
- Decide on your next steps: Once you’ve consulted an attorney about your debt with Lendini, decide what you’ll do next, whether it’s negotiating a settlement, going to court, or countersuing Lendini.
Filing a Complaint Against Lendini
If you feel like Lendini has violated your rights or breached your contract, you can file a complaint against them. Here are some resources where you should consider filing a complaint:
- Consumer Financial Protection Bureau (CFPB)
- Federal Trade Commission (FTC)
- State Attorney General
- Better Business Bureau (BBB)
Lendini phone number and address
If you need to contact Lendini about your revenue-based financing agreement, here’s how you can reach them:
- Phone: (844) 700-5363
- Address: 3220 Tillman Dr, Suite 200, Bensalem, PA, 19020
How Can a Debt Settlement Attorney Help?
If you’re being sued by Lendini, a business debt relief attorney may be able to help. There are attorneys who specialize in helping clients with their revenue-based financing, such as merchant cash advances. The right MCA attorney can represent you in court or, ideally, negotiate a settlement for you so you don’t have to appear in court at all. Not to mention, a good attorney can ease your fears and give you peace of mind throughout the process.
Tayne Law Group has experienced attorneys who regularly handle business debt cases like yours. If you’ve already been sued by your lender, MCA or other business debt and are worried what will happen next, reach out today to see how we can help. Contact our offices today by calling (866) 890-7337 for a free no obligation phone consultation with a team member or filling out our short contact form. We never share or sell your information, and all conversations are confidential.
FAQs
What does Lendini do?
Lendini offers revenue-based financing to small businesses. It’s owned by Funding Metrics, LLC, a data analytics company that uses its analysis tools to assess a business’s future revenue to approve its loans.
How much can I borrow from Lendini?
Lendini offers revenue-based financing in amounts ranging from $5,100 to $300,000. The amount you’re able to borrow depends on your business’s anticipated revenue.
How does revenue-based financing work?
Revenue-based financing is a type of business financing that’s based on your future business revenue. You borrow a lump sum and will repay it as a percentage of your revenue.
What happens if you don’t pay back a merchant cash advance?
If you fail to pay back your merchant cash advance or other revenue-based financing agreement, your lender could sue you to recover what you owe. You could negotiate a settlement or go to court to present your case.
