Frequently asked questions

About Lends Well

What is Lends Well?

Lends Well is a national/small business loans platform, connecting businesses who want to borrow with investors who want to invest in small businesses in the US.

Since launching in 2011, investors across Lends Well geographies — including more than 50,000 retail investors, banks, asset management companies, insurance companies, government-backed entities, and funds — invested $10 billion to 50,000 businesses nationally.

 

How did Lends Well begin?

Lends Well was founded in the wake of the 2008 financial crisis when small businesses were struggling and large lenders weren’t offering them financing. Our US co-founders had a successful business and first-hand experience with this problem.

 

In spite of their flourishing gym business, their loan applications were either denied or they were offered untenable terms an astounding 96 times. At the same time, investors were making poor returns. They had a simple idea — let them support each other.

 

By investing in successful and growing businesses through Lends Well, investors can diversify their fixed-income portfolios and access attractive returns. Businesses get fast, easy access to financing to grow, create jobs, support local communities and drive the economy forward. We believe it’s better for everyone.

How is Lends Well different from a bank?

Lends Well is not a bank. Lends Well uses technology to connect businesses who want to borrow with accredited and institutional investors who want to invest in a new asset class of small business loans. This means we can focus on one thing: giving small business owners an easy way to find a better deal.

 

We underwrite, approve, and fund loan applications and manage the entire loan disbursement and repayment process. To do this, we developed an efficient online lending and investing experience based on our cutting-edge technology and industry-leading risk management models.

 

We know that time is money for small business owners. While banks can require a lengthy and clunky loan application, our process is

quick, easy, and transparent. You can apply for a loan online in just 6 minutes, and get a decision in as little as one business day after submitting your documents.

We use cutting-edge technology to review your business’s overall financial health and base our decision on more than just a personal credit score. As a result, our seasoned underwriters can better understand your business and work with you to find terms that suit your needs.

Who regulates Lends Well?

Responsible lending is the core of our business model. As a marketplace, our platform cannot work unless we are acting responsibly with both borrowers and investors.

 

Federal, state, and local regulations govern almost every aspect of what we do. As a Florida Finance Lender, Lends Well lending operations are directly regulated by the Florida Office Of Financial Regulation. In addition, Lends Well lending and securities operations are subject to the state laws of each jurisdiction in which we operate, as well as regulations enforced by the Securities and Exchange Commission, the Federal Trade Commission, and other federal agencies.

 

We work hard to ensure the appropriate systems and processes are in place so we can monitor and comply with all relevant laws and regulations. These include the Equal Credit Opportunity Act (ECOA), the Unfair or Deceptive Acts or Practices rule of the Federal Trade Commission (UDAP), the Fair Credit Reporting Act (FCRA), the Servicemember Civil Relief Act (SCRA), and the Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM Act).

 

Why should I borrow from Lends Well instead of a different company?

Unlike banks, we are solely focused on being the best in the world at providing one service — small business loans. Lends Well platform offers a straightforward and transparent process, manageable and budget-friendly repayment schedules and competitive interest rates and fees.

We’ve found small business owners tend to use Lends Well for the following reasons:

  • Working with traditional lenders can require a lengthy, time-consuming application process

  • Small businesses don’t always fit banks’ narrow lending criteria

  • Small businesses may be able to save money by refinancing current debts with a lower-rate loan from Lends Well

  • Their bank is unable to provide finance quickly to capitalize on fast moving business opportunities, like competitive lease agreements.

 

Understanding what business owners need and addressing their problems head-on helps distinguish us from the competition. We surveyed our borrowers (August 10-30, 2018) and 92% (of 216 borrowers) said they would return to Lends Well for their future business financing needs.

What are the benefits of working with Lends Well?

We’ve taken the best parts of an SBA loan, such as monthly payments and no prepayment penalties, but offer an easier and faster lending process.

In addition to making the application process more efficient, we use a technology-driven underwriting process to assess the full financial picture of your business. This means we can sometimes help you get approved for a loan when other lenders turn you down. And when you apply for a loan, we’ll assign you a dedicated account manager to guide you through the loan application and approval process. After submitting the required financial documents online or to your Account Manager via email, you can expect a decision in as little as one business day.

 

Additionally, we report your business loan payments to two of the major business credit bureaus, Experian and Dun & Bradstreet (D&B), which can help your business build its own credit. This can be an important step in qualifying for additional funding, better terms with vendors, and lower business insurance premiums.

What kind of companies can get a loan from Lends Well?

We’ve helped thousands of established small and medium businesses grow, create new jobs, and stimulate economic growth in their local communities. We fund a variety of established businesses, including veterinary clinics, pharmacies, cosmetics brands, and many more.

 

The minimum qualifications for a loan through Lends Well are:

  • 2 years in business

  • A personal FICO credit score of at least 660 for business owners

  • No personal bankruptcies amongst the business owners within the last seven years

  • Not located in Nevada, due to state lending regulations

  • Operates in an industry other than select industries, including speculative real estate, nonprofit organizations, weapons manufacturers, gambling businesses, marijuana dispensaries, and pornography

Does Lends Well work with every industry?

No. Businesses in certain industries are ineligible for Lends Well term loans, including speculative real estate, nonprofit organizations, weapons manufacturers, gambling businesses, marijuana dispensaries, and pornography.

Are Lends Well loans available in all 50 states?

We offer loans to businesses in Washington, D.C. and 49 out of the 50 states. Unfortunately, due to the state’s lending regulations, we do not offer loans to businesses located in Nevada at this time.

Where is Lends Well located?

Our office is located in Miami.

You can find the addresses and additional contact information on our contact page.

Lends Well Term Loans

What types of loans does Lends Well offer?

We offer small business term loans with the following features:

 

  • Borrow from $25,000 up to $500,000

  • A six-month to five-year repayment period

  • A fixed interest rate that never changes over the life of your loan

  • Fixed monthly payments

  • No prepayment fees

  • A one-time origination fee

What is a term loan?

A term loan is a type of installment loan. You’ll receive the full loan amount, excluding the origination fee, at the start and repay the loan with a series of fixed (generally monthly) payments. A portion of each payment will go towards the interest that accrues and a portion pays down your loan’s principal balance. Your account will be closed once you repay the loan.

By contrast, you can borrow against a revolving account, such as credit card or line of credit, multiple times. However, revolving accounts often have variable interest rates, which can make it difficult to predict your expenses. Your interest rate could also rise, which will increase your cost of borrowing.

What are the advantages of using a term loan from Lends Well?

A term loan can give you immediate access to the working capital you need and a predictable repayment schedule.

 

With Funding Circle, your loan will have a fixed interest rate and fixed monthly payment. The predictable repayment schedule can help you plan and budget for the future. We also offer a wide range of loan amounts and repayment terms, and we never charge a prepayment penalty.

Other business installment loans might have variable rates or require more frequent payments, which can strain your business cash flow.

 

Additionally, we report your business loan payments to two of the major business credit bureaus, Experian and Dun & Bradstreet (D&B), which can help your business build its own credit. This can be an important step in qualifying for additional funding, better terms with vendors, and lower business insurance premiums.

What determines my monthly payment amount?

Your monthly payment will depend on your loan amount, repayment term and interest rate. 

What can I use my business loan for?

You can use your loan in a variety of ways to support your business. Popular uses for a Lends Well loan include expanding to a new location, purchasing equipment or inventory, and hiring staff. However, your loan may not be used for your personal finances, such as refinancing of personal debt.

What are the minimum and maximum loan amounts I can borrow?

You can borrow between $25,000 and $10 Million with a loan from Lends Well. You may be able to take out an additional loan once you’ve made six consecutive on-time payments on the first loan. However, the minimum loan amount is still $25,000 and your total combined debt can’t be above $10 Million.

If you run more than one business, you can borrow up to $10 Million per business, but no more than $10 million total — even if you have three or more businesses.

What if I need to borrow less than $25,000?

Our minimum small business term loan amount is $25,000 per loan. If you’re looking to borrow less than $25,000, you may want to consider a microloan. These small loans — generally $500 to $50,000 — are often to help businesses that have a small or short-term financial goal.

You may be able to find a microloan from different types of organizations, including nonprofits, community development financial institutions and financial institutions that participate in the SBA Microloan program.

What if I need to borrow more than $10 Million?

Our maximum small business term loan amount is $10 Million per loan. However, there may be options for additional funding.

If you’ve already taken out a Lends Well loan and made six consecutive on-time payments, you may be able to take out an additional loan. However, the total combined debt is still $10 Million.

If you run more than one business, you can borrow up to $10 Million per business from Lends Well, but no more than $10 million total — even if you have three or more businesses

Are Lends Well loans secured? What collateral do you accept?

Yes, all of our loans are secured. In addition to a personal guaranty from the primary business owner(s), defined as anyone with 20% or more ownership of the business, we require a lien on certain business assets. Collateral includes: equipment, vehicles, accounts receivable, and inventory. We do not take a lien on real estate.

Does Lends Well provide unsecured loans?

Lends Well does not provide unsecured loans at this time.

How quickly can I get a loan?

Most Lends Well customers get their loans within 5 days.

Our application takes less than six minutes to complete, and you’ll hear from us within an hour to answer any questions you have and collect the required documents. Once we have everything, we’ll get back to you with our decision in as little as one business day. After accepting the terms of the offer, you could receive the funding within one business day.

How quickly can I get my funds?

After you sign our loan documents and accept your offer, we send the money electronically to your designated business bank account. To expedite this process and save you time, we collect your bank account information during the application process with your account manager. We’ll send you a confirmation email as soon as we’ve transferred the money to your account.

Can I have more than one Lends Well loan?

We handle additional funding requests on a case-by-case basis. You may be eligible for an additional loan once you’ve made six consecutive on-time payments on your current loan. You can also apply for a new loan once you pay off your original loan. In either case, you’ll need to submit a new application for each additional loan.

Who funds my loan?

Your loan is listed on our marketplace. Accredited and institutional investors who want to invest in small business loans provide capital to Lends Well to lend to credit-worthy businesses. These investors range from multinational financial institutions to investment funds and individual accredited investors.

Rates and Fees

Does Lends Well charge any fees?

We won’t nickel and dime you with every payment. Our fee structure is simple: we charge a one-time origination fee on each loan we fund ranging from 3.49% to 6.99% of the approved loan amount. Just like your interest rate, your origination fee will be determined during our underwriting process and is based on your creditworthiness and term chosen.

We deduct the origination fee from your loan before sending you the money.

 

We don’t charge any prepayment penalties, which means that you can repay your loan early and only pay interest for the time you borrow.

 

For investors, we generally charge a 1% annual servicing fee on the amount outstanding on any loan. The servicing fee is deducted from the loan repayments made by borrowers.

Does Lends Well charge an application fee?

We will never, under any circumstances, ask you for an upfront fee in order to apply or borrow through the Lends Well marketplace. Your application and discussion with our dedicated account managers is absolutely free, and there’s no obligation to accept your loan offer.

Does Lends Well charge a prepayment fee?

No. You can repay your loan early and only pay interest for the time you borrow.

Are there any additional fees or charges that could apply to my loan?

If your monthly payment is more than 10 days late, we may charge a late fee of up to 5% of each missed payment amount. The late fee will be payable immediately and is in addition to the missed payment.

If I take out multiple loans, will each loan have its own rate and fees?

Yes. Each loan is an independent installment loan with its own loan agreement and fees.

Application Process

How do I apply for a loan?

There is a simple four-step process for getting a loan through Lends Well:

  • Step 1: You submit an online application in 6 minutes. There’s no application fee, impact on your personal credit or obligation to accept a loan offer.

  • Step 2: A personal account manager reaches out to you within 1 hour to learn more about your business, collect documentation and find terms that suit your need.

  • Step 3: Our underwriters review your application and make a decision in as little as 24 hours. We may contact you if we have additional questions.

  • Step 4: You accept a loan offer and you’ll be fully funded as quickly as 1 business day.

  • Step 5: Come back when you need more financing in as little as 6 months.

What does my personal account manager do?

You’ll be assigned your own personal account manager who will work to understand your goals, explain your options, walk you through our process and find the best terms to suit your needs.

Your Finance Care Specialist:

  • Learn about your business and how you’d like to use your funds

  • Ensures your file is complete and presents it to the underwriter to get you a decision in as little as 24 hours.

  • Answers any questions you have about your application

What information or documentation do I need for my application?

Typically, we only require basic information about you and your business to start the application. We keep your information secure and private — we don’t sell your information or the fact that you’ve applied for a loan with us to other lenders without your consent.

 

We may also ask for:

  • Company details, including the business tax ID

  • Names of shareholders or owners with 20%+ ownership

  • Social Security number of business owner(s)

  • Driver’s license number and state of issue

Additional financial information that we need before offering you a loan include:

  • 2 most recent years of business tax returns

  • 1 most recent year of personal tax returns for every business owner (20%+ ownership)

  • 6 most recent months of bank statements

Your personal account manager will work with you to ensure that your application is complete, including the required documentation. The faster you’re able to provide your documents, the faster we’re able to get you a loan decision.

Who can apply for a loan?

The minimum qualifications for a loan through Lends Well:

  • 2 years in business

  • A personal FICO credit score of at least 660 for business owners

  • No personal bankruptcies amongst the business owners within the last seven years

  • Not be located in Nevada, due to state lending regulations

  • Operate in industries other than select industries, including: speculative real estate, nonprofit organizations, weapons manufacturers, gambling businesses, marijuana dispensaries and pornography

 

Your business doesn’t need to look like this for you to apply, or get approved. But to give you a better understanding of the types of business that take out loans through Lends Well, here’s a look at the average profile of our borrowers:

  • Good to excellent personal credit

  • 11 years in business

  • $1.4 million in annual sales

  • 12 employees

Am I required to accept a loan offer?

No. There’s no application fee and there’s no obligation to accept a loan offer.

Can I change the amount I want to borrow after applying?

Our credit assessment decision is dependent on the loan amount requested and once you apply for a loan you cannot change the amount you want to borrow. The credit assessment team may deem that you can borrow a lower amount than that requested. If this is the case, they will contact you directly.

What factors do you consider in your underwriting process?

We know that a credit score isn’t the only indicator of a healthy business, so we consider a number of other factors when considering a loan application, from revenue to real-time cash flow to online customer reviews.

Does every customer qualify for every term length?

You generally can choose the loan term that best suits your business needs. However, we sometimes limit the loan term based on applicant creditworthiness.

Do you have minimum credit score requirements?

As a business owner, you must have a FICO credit score of at least 660 based on your Experian consumer credit report to qualify for a loan. When a business is owned by more than one person at least one of those owners must have a personal credit score of 660 or higher. For example, if the business is equally owned by three partners and at least one has a score of 660 then you could qualify.

When will you check my credit?

We will generally only conduct soft personal credit inquiries to underwrite or to service your loan, and we only conduct these after you’ve agreed to these inquiries during the application process. The soft pulls of your personal credit will not impact your credit score or show up on reports obtained by other lenders.

For businesses organized as general partnerships, we will conduct a hard pull of your personal credit report when you submit your application to our credit team. The hard pull may impact your credit score and appear on your personal credit reports for up to two years.

We may also check your business credit reports, such as a report from Dun & Bradstreet, Inc. Business report inquiries will not appear on your personal credit reports or impact your personal credit.

These reports help us understand your business and may include data about its revenue, time in business, SIC or NAICS codes, and information about the owners. The reports and info can help us efficiently determine your eligibility for funding.

Do you report my payments to the credit bureaus?

We report both on-time and late loan payments to two of the major business credit bureaus, Experian and Dun & Bradstreet.

We will not report your on-time loan payments to the consumer credit bureaus. However, if your loan defaults we will report the default on your consumer trade line. We only report to Experian for consumer trade information.

How do I increase my chances of getting approved for a loan?

We take a unique, holistic approach to understanding small business creditworthiness.

We evaluate not only business financial variables, but personal financial variables too, which we believe is critical to our ability to understand the nuances of each small business and provide a loan that’s tailor-made for its specific needs.

In general, having a history of repaying personal and business loans on time, positive business cash flow and good customer reviews can help make your application a success. If you have specific questions, or are looking for personalized guidance, you can work with your personal account manager once you submit an application.

How is the interest rate of my loan determined?

The final interest rate on your approved loan will depend on your creditworthiness which we calculate by reviewing both personal and business finances.

What if I don’t qualify for a loan from Lends Well?

If you don’t qualify for a loan from Funding Circle at this time, you could review our minimum eligibility criteria and try again later (generally, in 6 months). In some situations, we may also be able to connect you with other lenders who may be able to offer you financing.

Can I edit my loan application once it’s submitted?

If you believe there’s incorrect information in your application and want to correct it, please contact the application support team by calling +1 (888) 228-9981.

Do you share my application information with other lenders?

No, we won’t share your personal or business information, or the fact that you’ve applied for a loan, with other lenders unless you provide consent. Once your business is funded, we file a UCC-1 financing statement — a searchable record — on your business assets. Our name on these filings is masked for additional security.

Getting Funded

How do you determine how much funding I get?

We review your business information through data sources like your business checking account, payment processors, accounting platforms, and other online marketplaces. This helps us determine the creditworthiness of your business by analyzing your average monthly revenue, seller rating, time in business, transaction volume, among other characteristics.

When evaluating an application, we consider a variety of factors, including credit score, business revenue, and other indications of general creditworthiness connected to an applicant’s file.

Will I know my monthly payment amount before I accept my loan?

Yes, you will know your interest rate, repayment term and monthly payment before you accept your loan.

In some cases, we may be able to show you up to three different loan terms and you can pick the term and coinciding monthly payment that best fits your needs and circumstances. And because all of our loans have a fixed monthly payment, you can borrow and budget with confidence.

Where can I have my loan sent?

Your loan, excluding the origination fee, will be electronically transmitted to your business bank account.

Can I set up automatic payments?

Yes, we set up automatic payments (ACH) from your business bank account to help ensure our borrowers don’t accidentally miss payments. However, should an automatic payment not be suitable for your business, payments can be made via check.

Is there a prepayment penalty or fee?

No. You can repay your loan early and only pay interest for the time you borrow.

Support

How can I contact Lends Well?

Whether you have a question, comment, complaint or just want to say hi, there are many ways to reach us. Our contact page lists our phone numbers, email addresses and mailing addresses.

You can also connect with us via social media on TwitterInstagram, and Facebook.

How do I reset my account password?

If you forget your password, just go to Signup page and Click forgot password. You will be prompted to enter the email address you used to sign up for an account and a new temporary password will be sent to your email.

How do I unlock my account?

Please go here. You will be prompted to enter the email address you used to sign up for an account and a new temporary password will be sent to your email.

How do I unsubscribe from Funding Circle’s mailing list?

You can unsubscribe from our email list by clicking the “unsubscribe” button that’s at the bottom of every email.

We will then put your business on our do not solicit list to prevent future mailings or emails. The process may take five to six weeks, particularly for physical mail.

Privacy and Security

Is it safe to enter my data on the Lends Well website?

Data is encrypted from the moment you enter any information on the Lends Well website. Lends Well employs some of the strongest forms of encryption commercially available for use on the Web today. During any transaction, our encryption turns your information into a coded sequence with billions of possible variations, making it nearly impossible for unwanted intruders to decipher. Look for a “closed lock” icon in your browser to confirm if encryption is being used on any Web page you are viewing. Any Web address beginning with “https://...” indicates the page you are viewing uses encryption. The “s” stands for “secured.”

How do you keep my information secure?

We take the privacy and information security of our customers, investors, and partners very seriously, and are committed to providing the best level of protection for our customers, investors, partners and their data. Here are just some of the policies, practices, and technologies that enable us to do this:

  • Employing a dedicated and experienced security team that is responsible for setting and ensuring the company’s compliance with security policies and standards;

  • Performing regular penetration tests against our environments;

  • Complying with security regulatory requirements including PCI-DSS;

  • Employing security technologies like firewalls and scanning to protect our systems and data from attackers and malicious software such as AES 256 technology to encrypt social security numbers and other private data;

  • Retaining A+ accreditation by the Better Business Bureau.

Click here to read our privacy policy.

How is my Lends Well account secured?

When you log on to create a Lends Well account, we ask you to create a username and password. To securely log on to your Funding Circle account, you are asked to provide your username and password. Our systems use crypt to secure passwords to ensure that no one is able to access your information. 

Will I be automatically logged out for security purposes?

Lends Well system will automatically log you off after a certain period of inactivity. This reduces the risk of others accessing your information from your unattended computer.

What information will be available to investors?

When a loan is approved, we will make available certain information about the loan and the borrower to prospective investors. This information may include business information, business financials, loan terms, and other loan information, as shown below.

Business infortmation:

  • Business Name

  • "Friendly" Listing Name

  • Years of Operation

  • Industry

  • NAICS Code

  • Business Location — City & State

  • Business activity

  • State of Incorporation

  • Number of Employees

 

Loan Information:

  • Business Bankruptcy

  • Date of Business Bankruptcy

  • Debt Coverage Ratio

  • Asset Coverage Ratio

  • Number of Guarantors

  • Credit Score of Guarantor

  • Part of Franchise Network

  • Prior Loan(s) with FC

  • Amortization Table

 

Business Financials:

  • Income Statement

  • Balance Sheet

Loan Terms:

  • Loan Principal Amount

  • Interest Rate

  • Term

Do you sell my information with third parties?

We will never sell or rent your personal information to any third party unless we have your consent. And, if you do consent, but later change your mind, you may contact us directly and we will stop any such activity as soon as is reasonably practicable.

What is phishing? How do I know this email is really from Lends Well?

Phishing is a method used by fraudsters to access valuable personal details by pretending to be someone they’re not, such as posing as Lends Well. Phishing communication can involve the sending of emails, letters, text messages, or even phone calls.

Watch out for common tactics that scammers use, such as sending emails from email addresses that look similar to a company’s. Examples include LendWell.com (note the non s in lend) or LendsWell.cc rather than .com. Or, the “from” address looks correct, but when you hit reply, the address changes.

Communication from Lends Well will:

  • Never begin greetings with vague wording such as Dear Customer or “Dear Valued Customer.”

  • Never ask you to provide both your Lends Well username and password.

  • Never claim to be one of our investors.

  • Never ask you for your credit card information.

 

In general, be cautious about giving out personal information over email or the phone when someone else initiates the conversation and asks. You can always look up the organization’s contact information and call to make sure the request is legitimate.

What should I do if I suspect phishing?

If you think an email is fraudulent, immediately contact your Finance Care Specialist. You may also wish to report your incident immediately to the FBI’s Internet Crime Complaint Center (IC3).

It is important for you to alert us to a potential scam before providing any information to the fraudster. Unfortunately, in the majority of cases, Lends Well will be unable to recover any money paid over in a scam.

What should I do if I suspect phishing?

Good eye! Never provide personal financial information on a website that doesn’t look or feel right. Give us a heads up. We take phishing and other fraudulent activity very seriously, and involve third-party organizations to take down websites posing as Lends Well.

Manage My Loan

Loan Onboarding

When will I receive my term loan?

After accepting your offer by signing your loan documents, funds will be deposited into your bank within three business days.

How much will be deposited in my account?

We will deposit the full loan amount minus your origination fee, into your bank account.

How do I repay my Lends Well loan?

You can repay your Lends Well loan using automated electronic transfer from your business bank account. If you changed banks since submitting the application, please contact us to update your banking information. You can also submit payments by check or by wire, if you prefer.

When do my payments start?

Your monthly payments will start one month after Lends Well funds your loan. For example, if we fund your loan on June 4, then your first payment will be due on July 4 and each subsequent payment will be due on the 4th of that month.

Do I need to make daily or weekly payments?

It can be difficult to manage your business and finances while making daily or weekly payments, especially when payment amounts can change. Our fixed monthly payments start one month from the day your loan funds. The predictable and pre-set payment amount lets you plan ahead and keep your business running smoothly.

Can I choose to have daily or weekly payments?

You’re welcome to send payments as often as you feel comfortable. However, we’re only able to set up automatic weekly or monthly payments. We suggest (and the default is) automatic monthly payments.

When is my payment due date?

Your first payment due date will be one month after Lends Well funds your loan. For example, if we fund your loan on June 4, then your first payment will be due on July 4 and each subsequent payment will be due on the 4th of that month. Unfortunately, at this moment, we are unable to move your monthly payment date.

How do I make a payment?

Upon funding, your monthly payments will be set up to automatically debit from the bank account where originally deposited your funds. If you wish to set up your automatically monthly payment from a different bank account or if you prefer to remit payments by check or wire payment, please contact us so that we can assist you with making the requested change.

Can I choose the date for my monthly payments?

Unfortunately, no.

How much of my payment goes to the principal loan balance?

The amount of your payment that goes to the loan principal will depend on your loan’s term and interest rate. Lends Well loans use simple interest, which means interest accrues daily on the outstanding balance of the loan. When you make a payment on a simple interest loan, the payment first goes toward that month’s interest and the remainder goes toward the principal. Generally, the longer you’ve been repaying the loan, the larger the portion of each payment that goes toward the principal balance – similarly to how repayments are structured for a home mortgage.

When will I receive my statement?

You will receive your statement once a month, approximately 10 days after your monthly due date. Your statement will therefore reflect your most recent payment and current balance. While we don’t currently provide monthly statements via email, you can request an electronic copy of one of your statements.

How do I interpret my statements?

You’ll receive your monthly statement in the mail, which will have an overview of your loan’s rates and terms, along with information on your monthly payment and remaining balance. When you make a payment, we first apply the money to the interest that accrued since your last payment, then the remaining principal balance of your loan, and finally to any late fees (when applicable).

 

In the loan terms and balances section, you’ll find:

  • Maturity: When your loan will mature and be paid off based on the original repayment schedule.

  • Interest rate: The interest rate on your loan.

  • Next payment due: When your next payment will be due.

  • Payment frequency: How often your payments are due.

  • Principal balance: The remaining principal balance on your loan.

  • Accruing balance: The portion of your balance that accrues interest.

  • Unpaid late charges: Late charges that your currently owe.

  • Unpaid charges: Miscellaneous charges, which are generally associated with delinquent accounts.

 

The loan activity section is where you’ll find information about your most recent payment:

  • Effective date: The information is current as of this date.

  • Post date: When your most recent payment was posted to your account.

  • Total receive: The amount we received from your recent payment.

  • Interest: How much of your payment we applied to interest.

  • Principal: How much of your payment we applied to your loan’s principal balance.

  • Late charges: How much of your payment was applied to late charges on your account.

  • Other: Miscellaneous charges, which are generally associated with delinquent accounts.

  • Principal balance: The remaining principal balance on your loan.

Can I check my statements online?

Currently, we mail monthly statements to borrowers, allowing you to easily review the information and keep copies for your records. 

 
 
 
 
 
 
 
 
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Copyright © Lends Well 2021. All rights reserved.

1 Lends Well may partner with other lenders to provide a full range of loan options to qualified borrowers. Approval and funding times may vary between lending partners.