Ashton Kim

Fund&Grow Facts: An Honest Business Funding Services Review

December 26, 2019 By Ashton Kim

Over the past decade, lenders have continually tightened their requirements and increased their interest rates. Every day, it becomes more difficult for companies and individuals to access financing. While many companies have sprouted to solve this problem for small business owners, one of them stands out. Fund&Grow is one of the few contemporary financial services that boasts the ability to provide $50K to $250K in business credit at 0% interest.

To many, the funding service sounds too good to be true. But, is it? Here, you’ll find an honest, unbiased Fund and Grow review that covers the most commonly asked questions about the system. Find out how the service works, what it costs, and more.

First, How Does Fund&Grow Work?

Fund&Grow is a financial service that offers small businesses the opportunity to leverage up to $250K in unsecured financing. The business credit funding program is set up for self-employed entrepreneurs, small business/ startup owners, and real estate agents to leverage the best lines of credit to grow their companies.

Through their core consulting program, the company helps owners access large, unsecured lines of credit via business credit cards. First, if you need proper licensing, they will guide you in setting up your EIN and DUNs number. Then, on your behalf, they apply for credit cards with the most competitive banks who offer 0% introductory rates for 6-18 months.

The funding process is fairly simple:

Call Fund&Grow for an initial consultation.
Submit the proper documentation to your account representative.
Receive financial counseling from a specialist and sign a POA.
Allow the company to apply for credit on your behalf.
Accept your funding.

Fund&Grow's Business Credit Funding Program

Once your funding is approved and you’ve accepted your credit card offers, you can use the money for anything you need to help your business grow. There will be several batches of credit applications. Within 12 months, you should have from $100K to $250K in credit to use as you wish.

Since many people across the web ask why they should pay for this service when they could just apply for 0% interest credit cards on their own, I think it’s important to note one credit myth highlighted by Fund&Grow: “It’s all done by a computer.”

Fund&Grow does not simply submit applications online. They call financial institutions and speak with representatives and underwriters over the phone, which is the best practice for larger lines of credit.

Can you call banks and apply for credit by yourself? Yes.
But, do you want to or even know where to start? You’ll have to answer that question for yourself.

Furthermore, lines of credit aren’t the only asset Fund&Grow offers. Learn more about the extra perks of working with the company.

What Are the Added Benefits of Using Fund&Grow’s Services?

In addition to accessing new lines of 0% interest credit and financial education, Fund&Grow clients benefit on multiple fronts.

1. Dun & Bradstreet (D&B) Corporate Credit Building Program

As a Fund&Grow client, you will get help navigating your D&B credit profile to build non-recourse credit for your company. You can access an additional $100K in vendor credit through this program. And, learn to create a high PAYDEX™ score for as many corporations as you wish.

2. Learn How to Remove Credit Inquiries Within 45 Days

Removing credit inquiries from your credit profile can cost more than $350. Fund&Grow clients will learn to do this on their own and have inquiries removed in as little as 45 days. As a business, gaining large amounts of funds requires that you do this.

3. Create an Individual EIN and Other State Licensure Numbers

In order to apply for business credit and keep it off of your personal credit report, you will need an Employer Identification Number (EIN) for tax purposes. Fund&Grow will help you do this. They can also help you with LLC, C-Corp, and S-Corp licensure. You will only pay for the state filing fees.

4. Leverage Customized Personal Credit Boosting Strategies

Depending on the severity of any personal derogatory credit marks, Fund&Grow can help you come up with strategies to fix your credit, refer you to credit building companies at discounted rates, or show you where to find free help.

5. Introduction to Small Business Administration (SBA) Loans

When you work with Fund&Grow, you will create a comprehensive business plan. Part of this will include education about how to legally apply for partially-guaranteed SBA loans based on the size and structure of your business.

6. Exclusive Access to Educational Newsletter & Free Getaways

The company also has a paid newsletter for $50 per month, which provides financial education and gives readers access to:

International real estate and security investment ideas
Incorporation and tax strategies
Free getaway condos in the US & Hawaii (one week per year)

All clients are automatically signed up for the newsletter and can cancel at any time.

The total cost for a year’s subscription to the newsletter is $600. So, if you leverage the getaway option, this pays for itself.

Next, What Are Fund&Grow’s Requirements for Participation?

There is no minimum FICO score required for services through Fund&Grow. However, a strong credit profile will open you up to less expensive options. According to the terms of service and as with most financing options, “High debt levels or credit impairment will cause clients to receive less zero interest credit in the first couple of months and potentially during the membership term.”

Who is Fund&Grow’s Primary Clientele?

According to their about page, many of Fund&Grow’s clientele are real estate investors. These investors leverage the provided financial services to secure credit cards. They then use various methods to cash out and invest the money into real property. Once a purchase is made, they either flip the property and pay off the cards or refinance and rent out the properties.

Other businesses that successfully work with Fund&Grow do so to finance daily operations in ways that will help their companies bring in more revenue. This way, the cards are paid off by the time the 0% introductory rates expire.

So, How Much Does Fund & Grow Cost?

Two Fund&Grow pricing options are available for the primary financial consultation service. The first is a 12-month membership and the second is a performance-based plan. You’ll pay $3,997 or 9% of your total financed amount. Here are quick summaries of each option.

12-Month Membership Pricing: $3,997

There is no minimum FICO score required for Fund&Grow’s 12-month membership. The cost is $3,997 and payment plans are available. The membership comes with a 60-day money-back guarantee less 4% for credit card transaction fees.

Performance-Based Cost: $1 + 9% of Total Credit Acquired

If your FICO score is 730 or higher, you can leverage Fund&Grow’s performance-based pricing tier. After funding is established, clients on this tier pay 9% of their total financed amount plus a $1 sign-up fee.

+Remember the $50 newsletter subscription and unsubscribe if you don’t want to leverage the bonus education at this time.

And, Who are Fund&Grow’s Competitors?

In the information era, it’s important to be completely transparent. And, while the general consensus is that Fund&Grow is a good company to work with, their services aren’t right for everyone.

Many business owners are comparing Fund&Grow vs Credit Suite. So, here’s a shortlist of other companies that offer comparable working capital strategies and services to small business owners.

Credit Suite – Access multiple revolving credit lines from $5K to $50K.
LenCred – Get from $25K to $150K in business credit lines (Be sure to check out my recent LenCred Review).
Business Credit Builders – Receive between $50K and $150K in unsecured revolving credit lines.
One-Stop Funding Solutions – Obtain between $25K and $200K in low-cost funding.
Midwest Corporate Credit – Gain up to $500K in low-interest credit.

Moreover, there are many others out there. I haven’t yet had a chance to review all of the competition, so be sure to do diligent research before you dive in.

Final Thoughts

Based on the generally positive reviews, their A+ BBB rating, and my own personal analysis, it looks like Fund&Grow is a legitimate and helpful company to work with. You can leverage their services to fund almost anything related to the growth of your business. If you have good personal credit, a bit of cash to invest upfront, and you’re looking for a service to do the work for you, this could be an excellent avenue to explore. Now, if you want to boost your business credit score and acquire small business lines of credit (without paying high origination fees), start here: learn how to obtain business credit in 30 days.

This is the Truth About LenCred’s Small Business Financing

December 18, 2019 By Ashton Kim

Many business owners use LenCred to solve cash flow problems and increase their financial knowledge. But, before you take the leap and sign up for LenCred’s funding services, you need to know if it’s a wise decision. Will the system meet your company’s financial needs?

If you’re already seeking the answer to this question, you know that a Google search for ‘LenCred reviews’ spits back conflicting opinions.

First, TrustPilot gives the platform nearly a five-star rating.

Then, Fundera only gives LenCred three stars.

Who can you trust? It’s my job to provide you with the most helpful information possible. So, I’ve dug a bit to find out what’s actually up with LenCred. Know the facts so you can make an informed decision for yourself.

First, What is LenCred?

LenCred is a small business funding platform that helps companies with financial education and startup loans or working capital. They provide in-depth credit, income, and financial background reviews before submitting applications to lenders on business owners’ behalf.

Individuals can leverage LenCred’s services to draw from $25K to $150K in loans or business credit lines. The funds acquired through these services can be used to start or grow a business.

What is a FICO Pro Certified Business Funding Advisor?

LenCred boasts in their introductory video that company owners can call in and speak with a “FICO Pro Certified” business funding advisor. But, what does that mean? A FICO Pro Certification is a financial education program launched in 2010 by a company called AllRegs, a Sallie Mae partner. The program has since been discontinued, which might signal that the credibility of the funding advisors should be questioned.

When evaluating merit, I try to look for contemporary and more credible credentials like SAP FICO Certification Exam completion (a test that ensures financial consultants possess proven knowledge and fundamental skills in financial accounting).

Still, most users that review the platform are satisfied with their LenCred advisors’ financial knowledge and experience. At least one loan broker has left excellent platform feedback. Since he’s working in the same realm, his opinion probably has some weight.

So, while a FICO Pro Certification probably isn’t the best determining factor for selecting a credit advisor, LenCred’s staff has the recommendations (and experience) to back up their claims. They have satisfied many small business owners with their services.

Next, How Does LenCred Work?

After doing a soft pull on your personal credit report, LenCred’s proprietary software gathers information from more than 20 data points in your financial background. The information is used to predict your prequalification potential for an unsecured line of revolving credit from various lenders. And, your applications are submitted to several companies at one time.

What Educational Resources Are Available Through LenCred?

While the website boasts that they deliver how-to videos and reports, this is not true.

At this time, the financial resources available on the website are limited to eBooks.

LenCred’s Business Financing Guides provide helpful financial tips for small businesses. These eight eBooks are written by various financial experts.

Tom Gazaway, President & CEO of LenCred
Paris Connoly, Founder of PC Communications
Rieva Lesonsky, CEO of GrowBiz Media
Barbara Taylor, Co-Founder of Synergy Business Services

The guides cover topics like, “How Much Funding Will I Need for My Business?” and, “The Blessing and Curse of Starting a Business With Good Credit.” They seem to be around 15 pages each and are filled with professional advice from successful entrepreneurs. For startups and beginners who seek financial knowledge, this place is as good as any to start.

LenCred also has a Small Business Financing Blog on their website. Here, they publish new posts less frequently than once per month. This knowledge base covers 9 topics.

Borrowing Money
Business & Personal Credit
Credit Disputes
Credit Reporting
Entrepreneurship Advice
Raising Capital
Small Business Advice
Startup Capital
Working Capital

The LenCred blog provides another decent resource for business beginners.

How Many Lenders Will Receive Your Application for Credit?

Your experience of the system will vary based on which advisor you work with and your personal credit history. And, the number of funding applications submitted by LenCred on your behalf will differ.

One fact is certain: you will receive numerous hard pulls on your personal credit report before you qualify for a loan through one of the businesses in LenCred’s network of lenders.

One user complained that using the system led to 20 hard pulls on his credit report, which would be frustrating for anyone and does seem excessive.

But, the same user was satisfied with LenCred’s services less than a year prior. So, it’s likely that fewer applications were submitted the first time he applied for working capital.

This aspect of the system isn’t unusual. For example, when buying a car through a dealership, the lending department often follows a similar process. So, while it can be annoying that you’re not approved for every line of credit you want or expect, numerous hard pulls are in alignment with best practices.

What’s Involved in LenCred’s Application Process?

When you are ready to apply for financing through LenCred, you should first contact the company through their website contact form. Be sure to choose ‘Business Financing’ from the dropdown menu for the ‘Type of Inquiry’ before you send your message. A representative from the company will reply as soon as possible.

Alternatively, you can call the company directly at (888) 783-1503.

Your LenCred representative will ask your business goals, the amount of working capital needed, and what you plan to use it for.

Then, an advisor will inform you of how to proceed with your application. This will involve submitting verification of income, identification number submission, and other typical financial documentation.

Note: According to a LenCred representative I spoke with over the phone in December 2019, LenCred applies for lines of credit and credit cards based on your personal credit history through Experian. So, they will not use your EIN or DUNS™ number to check your business credit profile.

After that, the company will do a soft pull to get a birds-eye-view of your financial history. From this data, an expert will make an informed prediction about the best types of credit to apply for based on what you will most likely qualify for.

And, there are a few minimum requirements to leverage their services.

Experian credit score of at least 670
3-5 years of credit history
$30,000-40,000+ in annual household income

If you meet the bar, the company should be able to help you.

What Types of Working Capital Will LenCred Try to Get for You?

LendCred typically works with four types of small business financing.

Small Business Loans – term loans that are typically funded through a conventional bank or credit union.
Business Lines of Credit – revolving credit, typically credit cards, obtained on behalf of a business.
Equipment Financing – funding obtained directly from equipment retailers.
SBA Loans – small business loans that are partially guaranteed by the Small Business Administration (SBA).

LenCred will not submit applications to net 30 vendors. Furthermore, the platform is not affiliated with angel investing, crowdfunding, invoice factoring, merchant cash advances, or any other unconventional working capital or startup funding.

One common complaint multiple business owners have had, “I could have applied for these credit cards myself.” Company representatives typically respond right away with an explanation.

The usual reason for establishing multiple credit cards for a business rather than a loan is that the applicant was not likely to qualify for a loan. LenCred promises to always choose the best finding option for each individual.

And, What Does LenCred Charge?

Now, you need to know how much LenCred’s services will cost. The service isn’t free and you will have to decide if the expert assistance is worth it to you.

Educational resources: Free
Initial consultation & application submission: Free
Origination fees: 5-10% of credit line

While LenCred does not list the cost of their services on their website, past clients have posted public statements that support the above origination fee range estimate. Your amount may vary based on your personal credit profile.

The most likely origination fee for credit established through LendCred’s services is 9%. So, if you receive $25,000, you will likely pay $2,250. And, this amount will be instantly added to your repayment obligation. In other words, if you need $25,000 in working capital, LendCred will try to qualify you for around $27,250.

How Long Does it Take to Receive Funding Through LenCred?

Upon approval, it can take from 5 to 40 days to receive your funds, depending on the lender you establish a credit line(s) with. In some cases, you will acquire funds from multiple companies that will disburse funds on different dates.

Conclusion: The Value of LenCred’s Financial Services Depends on Your Situation

If you need working capital or startup funds, and you have good credit with low knowledge of conventional funding options, LenCred might be your saving grace. When you’re not interested in an unconventional option like crowdfunding and you don’t mind paying a 9% origination fee, you may prosper through Lencred’s financing services. However, if you’re trying to build business credit and want to obtain funding without paying high origination fees, LenCred would not be the suggested route. Since they do not use your business credit profile to acquire funds, their lenders are not likely to report to the business credit bureaus. To learn more about boosting your business credit score and acquiring small business lines of credit (without paying high origination fees), start here: learn how to obtain business credit in 30 days.