P2P Lending Loan for Small and Medium Enterprises

P2P Lending Loan for companies

P2P Lending Loan for companies

Let’s get to know Lendew peer to peer lending. Lendew loans are directed exclusively to companies that often leverage an existing business or even to maintain a cash flow need extra cash. Having a good cash flow can mean relief in some emergency, such as keeping the payment of employees and suppliers on time, for example, and so it is very important in each operation.

When applying for a loan for your company you carefully observe the interest rates that are charged. Some interest rates can be pre-fixed. For example, in the Federal Savings Bank, the loan can be split in up to 24 months, with a minimum limit of R $ 3,000.00. According to a survey, microenterprises seek loans for 5 years until they establish themselves and many end up failing to meet specific requirements.

One of the business loans that has been gaining more and more fans in the market is the peer to peer lending. This type of loan is part of a mode called a shared or collaborative economy, that is, corporations or people who are looking for new investors can connect to them more easily, without the intermediary of a bank. These investors are always behind well above average returns. Companies that offer this type of loan have the function of establishing the relationship between the investor and the seeker.

What does and how does Lendew work?

What does and how does Lendew work?

With the intention of bringing modernity to business life, Lendew is a fully online platform that connects easily all investors and companies that need loans. In this platform, there are no bureaucracies or abusive fees to effect the transaction, making the process much faster, fair and efficient.

The loan model that Lendew works on is the peer to peer, that is, its mission is to bridge the gap between the company seeking the loan and the investor (individual) who transfers the loan. This connection is made completely online, in a secure environment and without almost any type of bureaucracy.

Is Lendew reliable?

Is Lendew reliable?

Lendew is reliable, yes! When asked if a company is trustworthy is why we want to know if it is in accordance with legislation, with municipal and state bodies, and if there are complaints that undermine the credibility of the company. Well, when you access the site we can realize that all means of protecting the user have been met with SSL web security protocols.

What are interest rates?

What are interest rates?

Lendew has been revolutionizing the lending and investment market in a modern, flexible and transparent manner.

It currently has the lowest interest rates in the market – around 1.4% to 2.6% per month – and offers a quick and effective analysis of who wants to apply for a loan.

Who can apply for a peer to peer loan?

Who can apply for a peer to peer loan?

The company that was interested in requesting a loan in Lendew should meet the required criteria. Here’s what they are:

  • Have the company open for more than 12 years with a minimum gross invoice of R $ 250,000.00 per year or R $ 500,000.00 in the case of individual companies;
  • Submit all documents requested;
  • Negative companies can not apply for this type of loan, so your company must be up to date with their tax obligations.

Once the company applies for a loan at Lendew, it goes through some important steps. See what they are:

  1. Pre-approval: In this stage, the direct analysis of the CNPJ of the company that wishes to obtain the credit, searching for information about the partners and the company;
  2. Analysis of the request: Analysis of the requested credit, whether or not it is in the context where the company is, that is, it can not request a loan whose share is greater than its billing in the month;
  3. Credit analysis: In this stage, the analysis of the entire financial history of the company, balance sheets and DREs, Central Bank and SERASA;
  4. Analysis of the partners: This analysis is done with face-to-face or telephone interview, if you prefer, analyzing the history of income tax and personnel.

After these analyzes, the company earns a credit rating that will define the percentage of interest applied. The better the rating, the lower the interest rate.

Advantages and disadvantages

Advantages and disadvantages

Many business owners are still in doubt whether or not to apply for this type of loan, so we listed below some advantages and disadvantages of this business. Follow:

Benefits

  • For those who need credit: the hiring is done in a 100% online environment, very quickly and without bureaucracies. The interest rate is one of the lowest in the market.
  • For those who are investors: reduced rate of default by borrowers, greater control and higher rate of return of all investments.

Disadvantages

  • For those who need credit: the disadvantage that is most evident, without doubt, is the denial of credit by some companies to individuals, with priority given only to legal entities;
  • For those who are an investor: even though the default numbers are smaller on this type of loan, they do exist, so the best thing to do is to diversify the form of your investments and know all the rules applied by each platform.

How to get lower rates for loans?

Loan rates are extremely important when it comes to seeking funds from banks and financial institutions. No matter how good the conditions seem – long terms, lack, etc. -, the most important is to pay attention to interest because they can make the money received very expensive.

It is critical to evaluate the options available and to seek lower rates on different banks and lines of credit.

Want to understand more about it? Follow the information in this article.

What Makes a Loan More Expensive?

  • What is Total Effective Cost?
  • Why are some loan rates lower than others?
  • What are the most attractive loan options?
    • 1. Vehicle Financing
    • 2. Real estate financing
    • 3. Consignment Credits
    • 4. Factoring or anticipation of receivables
    • 5. Leasing

What Makes a Loan More Expensive?

Not only do interest rates influence the value of loans. Other factors impact the total to be paid, for example:

  • term – the higher it is, the more interest you will pay;
  • bank fees – fees to open and renew credit, to hold your account or transfer your funds to another bank may increase your debt;
  • IOF – mandatory for any transaction, the Financial Transaction Tax is calculated on the amount you borrow and embedded in the installments, increasing the final value.

At the time of the choice, evaluate all the costs you will have to borrow money and calculate, by adding up the total installments, how much you will actually pay.

What is Total Effective Cost?

The CET ( Total Effective Cost ) is a rate that represents the total price you pay for the money you borrow. As the above amounts are also, as we said, embedded in the debit balance, effective interest rates are higher than the contracted.

The CET, then, represents the rate you actually pay for the money. Comparing the CETs of your options is a clear and simple way to choose the most advantageous loan.

Why are some loan rates lower than others?

 Why are some loan rates lower than others?

The less collateral the bank has that it will receive the amount borrowed, the higher the interest rates. Therefore, vehicles and real estate financing tend to have much more attractive interest rates.

Also, most credit operations are covered by insurers that reimburse banks if the customer defaults. Loans without many guarantees, with a higher degree of risk, do not count on this insurance and become, for the banking client, much more expensive.

What are the most attractive loan options?

 What are the most attractive loan options?

According to the above premises, they can be more attractive:

1. Vehicle Financing

 1. Vehicle Financing

Cars, motorcycles and trucks, for example, have specific lines of credit. In them, the vehicle is given as collateral for the loan and is disposed of fiduciarily to the bank, until the total repayment of the debt. That is: the owner uses the property, but can not sell or transfer to a third party.

2. Real estate financing

Like vehicle financing, home and apartment loans also have very attractive rates, because the property gets stuck with the contract until the last installment is paid.

3. Consignment Credits

These are those cash loans in which the installments are debited directly from the debtor’s payroll. There are options for:

  • public servants;
  • retirees;
  • pensioners;
  • employees of companies with payroll in the bank and contract for direct discount in the net.

4. Factoring or anticipation of receivables

 4. Factoring or anticipation of receivables

 A Factoring company or even a banking institution allows an entrepreneur to offer their balance receivable from installment sales (checks, tickets, etc.) in exchange for credit.

Commonly called prepayment of receivables, this alternative makes the company have money to use as working capital, even selling on term.

Although it is an interesting alternative, it is necessary to be aware of the percentage that Factoring gets from its receivables, since some may have very high rates.

5. Leasing

 Financial management for companies: Get to know the best practices!

Leasing , or leasing, is a credit option similar to renting a vehicle. In this case, you, as the customer, pay for the use of the good and, at the end of the contract, become the owner if you decide to do so.

It is important to always emphasize, on the other hand, that credit card and special interest rates make these sources of funds very expensive, especially for companies that work with reduced profit margins. Avoid them, therefore, and look for more viable alternatives.

 Anticipation of receivables: know the advantages and risks!