FAQ


Borrowers: Frequently Asked Questions

Who exactly can get a loan using Lendoor?

Everyone can start a loan campaign
Anyone over 18 can start a loan campaign. Whether your loan campaign is successfully funded depends very much on you.

Don’t raise a loan unless you can repay it!
You must be able to make the monthly repayments of your loan. The first repayment is due 60 days from the launch of your loan campaign.

How long does a loan campaign last?

You can fundraise for up to 30 days. Your loan campaign will be automatically closed as soon as you reach your loan target.

How quickly can I get my loan?

Your loan campaign will be automatically closed as soon as you reach your loan target amount. Typically, you will receive the loan proceeds 5-6 business days after the last pledge to your loan campaign that makes it fully funded. However, payment processing may take up to 13 business days.

Why the "all or nothing" rule?

You can’t purchase half an espresso machine or open half a new location. Your prospective supporters will consider your future plans before they pledge to lend to you. And you will not be able to fulfill your plans unless you secure all the funds you need.

Will Lendoor lend me money?

No, we won’t. Lendoor is simply a facilitating platform – we provide you the tools to efficiently and affordably reach out to your network for support.

What does Lendoor cost?

It is free to open an account and launch a loan campaign on Lendoor.

If your campaign is successful and your loan is closed, there will be a facilitator fee of 2% and a loan service fee of 50 cents per month per lender (capped at $25 per month).

If I can borrow from people I know, why do I need Lendoor?

We save you time and money by providing a simple fundraising process, a formal contract between you and your lenders, and an easy-to-use automated repayment system.

We help you turn your social contacts into capital. Lendoor makes it possible to borrow small amounts from a large group of people. Even if you don’t have a rich uncle, you can still raise the money you need for your business venture.

How do I get people to pledge to my loan?

Quite simple – extend a note to anyone you know making them aware of your loan campaign on Lendoor. Send them a link to your loan campaign via email, text or social media. Everything they need to know is there. Lending is as easy as clicking the “LEND” button and filling out couple of simple forms.

How much information should I release about myself and my business?

Generally, the more information you provide, the easier it is for people to decide if they want to lend you money. Keep the information short and critical to a lending decision. What would you want to know if you were lending to you?

Can I change the terms of my loan during the fundraising campaign?

No, you cannot change any of the terms in a live campaign. However, you can close your current campaign and start a new one.

Is the interest I pay tax deductible?

Lendoor isn't able to offer tax advice. We encourage you to consult a tax professional or the IRS website if you have any questions.

What happens after the loan closes?

You will receive your money (after facilitator fee) directly into your bank account.

Your first repayment is due 60 days from the launch of your loan campaign. It will be withdrawn from your bank account via ACH. All you need to do is to make sure you have enough funds.

What will happen if I am late on a payment?

When you ask your friends for a loan on Lendoor, you make certain commitments and you must make good on them. If you miss a payment but are able to get back on your payment schedule within 20 days, you will be charged only a penalty fee of 3% after a 10 day grace period. The penalty fee will be fully distributed to your lenders, as per the documented loan requirements.

If you are late for more than 20 days, your lenders have the right to pursue their rights in court or engage a collection agency to seek payment from you. It’s a loan, not a gift.

Will you check my credit score?

No! We won’t do a credit check since you will be borrowing from people that already know you.

Who sets the terms of my loan?

You do. You choose the three most important terms of your loan: amount, term to maturity and interest rate. All other terms, like what happens if you are late on a payment, are standard in the Lendoor documentation and you must agree to all of them and adopt them as your own. Regretfully, we cannot negotiate or modify any of these terms on individual basis.

Can Lendoor turn me down?

Yes, we can turn you down if we review your loan campaign and determine that it does not pertain to a business venture. We are here to support entrepreneurship and innovation. If you need to borrow money to remodel your kitchen, Lendoor is not the solution for you.


Lenders: Frequently Asked Questions

Who can lend money on Lendoor?

Anyone over 18 years of age. You also must know the person to whom you are lending.

Is this a loan or a donation?

It is a loan – you give the money, you expect to get it back. It is not a gift. It is not equity in a company. And you will be repaid in cash, not products or services.

After I have lent money, how will I be paid back?

You will be repaid in equal monthly payments directly into your bank account. The first payment will be due 60 days after the loan campaign that you are supporting was launched. Typically, you will receive the repayment within 5-6 business days. However, payment processing may take up to 13 business days. You will receive an email alert each time a payment is directed to your bank account.

How risky is my loan?

Lendoor does not render an opinion on the riskiness of the loans crowdfunded on our platform. You must rely on your own examination of the borrower and the terms of the loan, including the merits and risks involved. Please make sure to read in full and understand all the information provided by the borrowers on their loan campaign page.

What is the return on my loan?

Unless it is 0% loan, your loan will pay interest. But there are other benefits besides the purely financial: Loans facilitated by Lendoor let you put your money to a better use – helping a friend, helping a small business owner whose products or services you enjoy, helping to shape your community. We call it "community interest".

What happens if the borrower stops paying?

If payments on your loan stop, the borrower is entitled to a 20-day grace period, after which you may pursue your rights in court or via collection agency. Note that this will not guarantee full recovery of any interest or principal.

If the borrower gets back on track before the 20-day grace period, but his/her payment was over 10 days after the due date, he/she must also pay you a 3% penalty fee on the past due amount.

How is crowdlending different from peer-to-peer lending or crowdfunding?

Peer-to-peer lending is generally done through investing in an anonymous "pool" of loans. Crowdfunding is often simply money you give in return for a product or service. It could also be a charitable donation.

Crowdlending allows you to put your money to good use, but unlike crowdfunding you expect to get your money back.

I would like to help, but I don't like the terms (e.g. the interest rate is too low). What should I do?

Feel free to share your thoughts with the borrower in a message via our Town Hall messaging board. Your question will be visible to everyone that was invited to the loan campaign. If many people feel the same way, the borrower may decide to start a new campaign with better terms. However, if there are enough people to fund the loan at the current terms, you will be left out.

What is the difference between "pledging" and "lending"?

When you pledge a certain amount of money you agree to lend that amount only if the loan campaign is fully funded. That improves the odds that your money will be supporting a viable project.

How much does it cost to lend?

It is free. Period.

I pledged to a loan campaign. What happens next?

Lendoor has partnered up and is fully integrated with banking software provider SynapsePay. All funds held during a live loan campaign on Lendoor are held at SynapsePay’s partner Triumph bank and are FDIC insured, but bear no interest.

Once you pledge to a loan campaign, your money will be moved into a special account for the borrower. Your money will be held there until the loan campaign is fully funded or expires (up to 30 days). If the campaign expires unfunded, your money will be returned in full. Typically, you will receive the refund within 5-6 business days from the closing of the loan campaign. However, payment processing may take up to 13 business days.

If the loan campaign is successful, your money will be sent to the borrower and you will start receiving monthly repayments directly to your bank account. Your first repayment will be due 60 days from the launch date of the loan campaign you are supporting.

Who handles the money transfers?

Lendoor has partnered up and is fully integrated with banking software provider SynapsePay. All money is moved by SynapsePay's partner bank(s). Lendoor only relays the information.

Do I have to pay taxes on the interest I earn?

Lendoor isn't able to offer tax advice. We encourage you to consult a tax professional or the IRS website if you have any questions.

How do I lend using Lendoor?

Simple! All you need to do is to click the LEND button and fill out a couple of forms.

How much of the loan campaign information is verified by Lendoor?

Lendoor does not verify ANY information provided in a loan campaign. You should do your own due diligence and make up your own mind. If you have doubts, ask questions and request additional information/verification from the borrower.

These are some of the things that Lendoor WILL NOT do: Verify whether the disclosed information is accurate. Render an opinion on the creditworthiness on any loan. Run a background check on the borrower Check the borrower’s credit score.

What is SynapsePay?

SynapsePay is Lendoor’s banking software provider. All money is moved by SynapsePay's partner bank(s). Lendoor only relays the information.