LoanMe Small Business Loans Review
- Borrower qualifications are lower than banks
- Application process is fast & easy
- Rates can be expensive
- Some additional fees are charged
- Customer service is pushy
Founded in 2014, LoanMe (also called Cash4Rent) is a lender that offers personal and business loans to eligible candidates. The company specializes in lending to businesses that need money fast or cannot get funding from other sources.
This speed and convenience come at a high cost, though. According to the company’s website, interest rates on business loans range from 14.9% – 149% and origination fees range from 5% – 10% (or higher depending on the loan product). For comparison, lenders that offer similar loans normally carry interest rates between 5% – 36% and origination fees from 1% – 8%. To put that further into perspective, because LoanMe offers very long term lengths, you could potentially pay up to 10 times your original borrowing amount.
That said, LoanMe’s website and customer service are upfront about the high cost. The website fully discloses potential interest rates. It also provides repayment examples for a variety of different situations and encourages borrowers to repay as quickly as possible to save on interest charges.
However, there is still plenty of criticism to go around. Some customers don’t feel that they adequately understood the loan terms ahead of time. Many others have complained about extremely expensive rates and fees. Others say that customer service can be rude and pushy, and LoanMe employs questionable collection tactics.
Is the high cost worth it? Ultimately, that’s for you to decide. However, given the company’s high interest rates and the volume of customer complaints, Merchant Maverick cannot in good faith recommend that any business take a loan from this company.
Curious about your alternatives? Check out our favorite lenders for startups or businesses with low credit or a comparison of our favorite small business lenders. Or, if you’re still interested, read on for the details.
Table of Contents
- Personal loans
- Business loans
These are the minimum requirements to qualify for a business loan from LoanMe:
|Time In Business:||90 days|
Additionally, you must run a for-profit business and have a business bank account that is at least three months old. Applicants must be at least 21 years old.
LoanMe’s business loans are currently only available in 30 states. Check their website to find out if your state is eligible.
Terms & Fees
LoanMe’s loan offerings vary by state. This is their offering in most states:
|Borrowing Amount:||$3,500 – $250,000|
|Term Length:||two – 10 years|
|Interest Rate:||24% – 149%|
|Origination Fee:||5% – 10%, minimum of $500|
|APR Range:||Learn more|
For the most part, LoanMe offers installment loans, which means that you will make fixed monthly payments until the loan is repaid. However, you do have the option of repaying early or making additional payments.
LoanMe also offers other loan products depending on your state, such as fixed-payback loans, installment loans with borrowing amounts up to $250,000, and deferred payment loans.
Here are a few examples of loans using numbers from LoanMe’s website, so you can see how the interest rate has an effect on the overall cost of the loan:
|Loan 1||Loan 2||Loan 3||Loan 4|
|Term Length:||120 months||120 months||120 months||24 months|
|Fixed Monthly Payment:||$1,102||$1,661||$3,917||$1,982|
However, because LoanMe encourages early payments, you may be able to save a fair amount of money on interest by making additional payments or paying the loan off as early as possible.
To start off your application, you will need to fill out an online questionnaire or talk to a representative on the phone. After entering some basic personal information about yourself and your business, you’ll be able to determine the amount for which you’re eligible. At the end of the questionnaire, LoanMe will provide you an estimated quote detailing the borrowing amount and the rates and fees you will have to pay.
If you wish to continue the process, you’ll have to fill out a full application and send in documentation to verify your identity and bank account. LoanMe will request information and documentation such as:
- A voided check
- Bank statements from the last few months
- A copy of your driver’s license or other personally identifying documentation
- Business EIN
When you’ve submitted all the necessary information, LoanMe will send your application through underwriting. LoanMe will then get back to you with an official offer, which you’ll have a chance to review before accepting the deal. Should you accept, the money (minus the origination fee) will be wired into your bank account.
LoanMe states that the time from application to funding is normally 24 hours or less.
Sales & Advertising Transparency
The company is very up-front about potential terms, rates, and fees on their website. In addition to providing potential rates, the company provides example repayment amounts at different stages of time and encourages borrowers to repay as early as possible, stating that:
Repaying your loan early can save you on your interest expense, so we recommend you pay off the loan as soon as possible. Many customers also make additional pre-payments if they can’t afford to pay off the loan entirely. We have no hidden fees for early repayment and you will save money as we only charge interest for the days that you borrow.
However, some information is still lacking. Notably, there is very little information about who is behind this company or what the company’s mission is, which is normally a red flag.
Customer Service & Technical Support
Customer service is available via phone or live chat. The company also has Facebook and Twitter accounts.
Customers do not complain of having any problems getting in touch with LoanMe representatives and many appear happy with the level of support provided. However, some customers have complained that customer service was rude and pushy, that the cost of the loan was not adequately explained to them, or that they received frequent calls from collection agents to their home and business when they became delinquent on a loan.
Negative Reviews & Complaints
LoanMe is accredited by the Better Business Bureau with an A rating but has logged more than 100 complaints and negative customer reviews in the last three years. There are also quite a few complaints on the Consumer Financial Protection Bureau (under the name “Bliksum, LLC,” a holding company that owns LoanMe) and a number of other places on the internet.
In addition to bemoaning the high rates and fees, customers voiced these complaints:
- Inadequately Informed Of The Loan Cost: Some customers say that they were not adequately informed of the cost of the loan before accepting the offer. Most claim that the loan is more difficult to pay off than expected because the interest accrues at a very fast rate, and only a small amount of each payment goes toward paying off the principal. That said, LoanMe does clearly state its interest rates and fees on its website.
- Harassing Telephone Calls: Customers have complained that, upon delinquency or late payment, they have received a number of calls from LoanMe to their homes (and sometimes their places of work). Some customers have stated that these calls come from multiple numbers and do not stop when the customer asks. It’s worth noting that, to many of these complaints, LoanMe’s response is normally along these lines:
While LoanMe has attempted to contact our customer to secure a payment arrangement, many of those calls went unanswered. Our objective was to have a meaningful conversation to assist our customer.
- Unexpected Hard Credit Checks: Some people have complained that LoanMe unexpectedly did a hard check on their credit (which lowers your credit score) instead of a soft check. However, these incidents seem to have been simple miscommunications between LoanMe representatives and customers, not a pattern of behavior.
Positive Reviews & Testimonials
LoanMe has positive reviews on sites such as TrustPilot and on Google. Here is what customers like about the service:
- Helpful, informative customer service
- Fast application and funding process
- Low borrower qualifications
We’d like to hear from you, though. Have you gotten a loan from LoanMe? What was your experience like? Leave a message in the comments!
LoanMe is a business funder of last resort. I would highly advise anybody looking for a loan to look at other options before considering LoanMe.
If you do feel it necessary to get a loan from this company, it’s essential that you understand the financing cost and have a plan in place to repay the loan as quickly as possible. Loan calculators with amortization schedules can help you get a good idea of how much you’d be paying per month, including how much is going toward interest and how much you could save on interest by repaying early.
For other options that may work for your business, check out our full list of business lender reviews or our favorite lenders for businesses with low credit scores or little time in business.