funding services review

The Payoff Loan Review: Is This the Debt Consolidation Option for You?

“How can I pay off $5,000 (or more) in debt fast?”

“How can I raise my credit score 50 points fast?”

“What can I do to get out of credit card debt and take control of my finances?”

If you’re asking these questions, you may have found your way down the rabbit hole to the doors of debt consolidation lenders. One of these doors, naturally, leads to The Payoff™ Loan. So, should you open it?

Here, we’ll look at everything you need to know to decide if Payoff by Happy Money is the right option for you to pay off your debt. This is what’s in store:

What is Debt Payoff?
What is The Payoff™ Loan?
- What to Expect When You Apply for a Payoff™ Loan
Payoff vs Upstart vs SoFi: Competitor Overview
Final Takeaway

Is Payoff™ any good? Read the full review to be 100% certain you’re making the right financial decision before you sign on.

What is Debt Payoff?

The Happy Money brand, Payoff, got their name from the financial term. A debt or loan payoff is the act of paying off the full amount of a debt (in this case, several credit card debts). Keep in mind that the balance owed on a loan or line of credit is not always the same as the payoff amount.

At the end of each payment period, interest is often added to the outstanding balance of a loan. So, typically, the longer it takes to pay a loan off, the more you pay. A payoff ensures that the account is paid in full. You must always carefully read terms and conditions to understand what you will pay over the lifetime of funding.

How Does a Payoff Loan Work?

A payoff loan works by consolidating multiple debts into a single new loan. Once the payoff loan is obtained, other debts will be paid in full and the borrower will then have only one monthly payment. In a good scenario, a payoff loan carries a lower interest rate than the borrower’s original debts, which can mean less money owed in the long term.

If you’re still in a 0% introductory rate on credit cards, it’s not a good idea to obtain a payoff loan to consolidate them because the interest paid will be higher. However, if you can move balances to a new loan with lower rates, this type of funding can be beneficial.

What are the Disadvantages of Debt Consolidation?

Every financial decision you make will come with a unique set of pros and cons. The trick is to make sure the benefits outweigh the drawbacks. So, here’s the quick and dirty on the disadvantages of debt consolidation (Keep in mind, payoff loans/consolidation are not synonymous with debt relief).

You may not always save money
Sometimes it accomplishes a mere shift of your debt to a new account
It has the potential to put you in debt longer than paying off your accounts
Origination fees can incur upfront costs

The advantages are that you’ll owe one monthly payment instead of a payment for each debt owed. And, ideally, you’ll pay less interest over time.

Q: Why did my credit score drop when I paid off debt? A: Sometimes paying off revolving debt can temporarily decrease your credit score if the paid-in-full account is closed. This happens when closing an account leads to an increased credit utilization ratio.

Lenders prefer a utilization ration of 30% or less. It is always a good idea to pay off debt as soon a possible. Some borrowers opt to leave credit cards open, even after they are paid off. By doing so, their credit utilization ration is not negatively impacted when debt is paid off.

How to Calculate Debt Payoff

When considering debt consolidation, before exploring your options, you need to fully understand your unique financial situation. A lack of understanding is part of what got you into debt in the first place.

So, before you sign anything, make sure you’re clear on each of your debts. For each credit card, gather the following information:

What is your total balance owed?
What is the interest rate on the card?
What is the minimum monthly payment?
What is the maximum payment you can afford?

The easiest way to find your answer is to then use a loan payoff calculator. For this, check out CreditKarma (just ignore their ads for new loans and lines of credit). You can use the calculator to determine the total payoff amount (full balance), estimated payoff time, and what you can expect to pay in interest and toward the principal.

Once you have all of this information, shopping for loans, you can determine whether a loan is even right for you. In some cases another debt repayment method like snowballing might be a better fit.

You’ll know if the cost and duration of any loan you might qualify for is higher and longer than what you can make happen on your own that debt consolidation isn’t the smartest move.

What is the Payoff™ Loan?

The Payoff™ Loan is one of many debt consolidation loans in today’s financial marketplace. They have a quick application process and prequalification with a soft pull of your credit. The offer is from Happy Money, a company with a mission to “turn borrowers into savers,” not a traditional lender.

In fact, Payoff is not a lender at all. Instead, they offer loans from partner institutions. Happy Money, Inc. earns a commission from their partner lenders for each loan obtained through their platform(s).

What to Expect When You Apply for a Payoff™ Loan

Checking your rate on the Payoff website will not affect your credit score. However, during the process you will consent to receive phone calls and emails from Payoff. So, even if you don’t follow through with your application or you can’t qualify for any reason, the company will likely contact you in the future, which can get annoying.

So, to be safe, find out whether or not you’re likely to qualify and if you even like the options they might extend. Learn more in the following sections.

Payoff™ Loan Requirements
Payoff™ Loan Terms and Fees
Payoff™ Customer Service
Frequently Asked Questions

Or, skip ahead: Payoff vs Upstart vs SoFi: Competitor Overview

Payoff™ Loan Requirements

One of the best features of Payoff™ is their transparency. It’s super easy to find anything you need to know about approval on their Getting Approved page. In a nutshell, here’s what you need:

≥ 640 FICO score (via Transunion)
No current delinquencies
≤ 50% debt-to-income ratio (See Payoff’s™ Guide to Documents and Verification)
≤ 30% credit utilization ratio

Some reviewers have said that you also need an annual income of $40K.

Payoff™ Loan Terms and Fees

First of all, with this offer, you won’t pay for an application, early payoff, late payments, check processing, returned checks or annual fees. But, the loan won’t be free. Instead you can expect origination fees of up to 5% (On a $10K loan, you might expect to pay up to $500) and APR between 5.99% and 24.99%.

Terms for Payoff™ loans range from two to five years. So, that’s how long you’ll have to pay off your loan between $5K and $40K. In New Mexico and Maryland, loans must be at least $5.1 and $6.1K respectively.

Payoff™ Customer Service

Theres something to be said for the power of the customer experience. As humans, we’re often prone to spend more for better service, which doesn’t disclude our financial lives. So, will Payoff’s™ support meet your needs?

Most people seem to love the customer service. They have a live chat feature as well as publicly-displayed contact phone number, email address, and physical location, which indicates that their team is accessible.

Of course, not everyone will have a great experience, for varying reasons. Technical problems, system overload (It seems to me like most lenders has had a rough go with this surrounding the pandemic and PPP), and other problems with customer service exist with all funding providers.

In the case of Payoff, borrowers have cited problems with the website and contacting a representative in the recent past. We can hope that the company will address these issues moving forward.

Frequently Asked Questions

Now, let’s address some of the most common questions that are still unanswered.

What bank does Payoff™ use? – As of November 2020, Happy Money,™ Payoff’s parent company, currently works with six partner lenders: Alliant, FirstTech Federal Credit Union, Technology Credit Union, Teachers Federal Credit Union, GreenState Credit Union, and First Electronic Bank.
Does Payoff™ verify income? – Yes, most people will be asked to provide their two most recent paystubs. Self-employed individuals may submit their most recent tax Form 1040.
Can you pay off a Payoff™ loan early? – Yes, you may. There will be no penalty for early repayment on a Payoff™ loan.
Can I refinance my Payoff™ loan? – Yes, personal loans can be refinanced.
How long does it take Payoff™ to review application? – The review process will typically take between three and seven business days.

Payoff vs Upstart vs SoFi: Competitor Overview

At the bottom of the debt consolidation loan rabbit hole, you’ll find an array of options. The closest comparisons to The Payoff™ Loan by Happy Money are Upstart and SoFi’s offers.

Payoff, Upstart, and SoFi have some commonalities:

Competitive interest rates & fees
Simple application process
Cater to borrowers with fair to good credit
Transparent terms and conditions

Then, they have some key differences. So, let’s look at how these three lenders stack up side-by-side.

Of the three, Upstart caters to borrowers with the lowest (fair) credit scores and SoFi has the largest personal loans, mortgages, and student loan consolidation offers. Payoff is still in the game with a decent offer for credit card debt with high or predatory interest rates.

Final Takeaway

Is The Payoff™ Loan a good idea? If you need a loan of less than $5K or more than $40K, your personal credit score is lower than 640, or you need money to pay off more than just credit cards, you should look elsewhere for financing. Otherwise, this credit card debt consolidation offer is legit. So, there’s no harm in checking your rate to find out what you might qualify for.

If you’re interested in learning how to obtain up to $100K in business credit in as few as 30 days, start here.

How to Interpret Lendio Reviews: Is This Funding Company Legit?

By Joe

Business owners across the world, now more than ever, turn to online lenders to keep their cash flowing and their doors open. One of the significant names in the business finance game today is Lendio. But, is Lendio a legit company? You want an honest answer, so here it is.

Let’s examine actual Lendio reviews from some of the most trustworthy consumer sites and thoroughly examine the brand’s offer. Here’s what we’ll cover.

What is Lendio?
- Who is Lendio and Where is the Company Based?
How does Lendio Work?
- What Type of Funding Can You Get Through Lendio?
- What is Sunrise by Lendio?
Is Lendio an SBA-Backed Lender?
- So, Has Lendio Funded any PPP Loans?
- And, If They’re Not Funding, How Does Lendio Make Money?
Now, How to Decrypt Mixed Lendio Customer Reviews
+Bonus: A Quick Look at Lendio’s Franchise Offer
Final Answer: Is Lendio Legitimate?

Read on to piece together the puzzle.

What is Lendio?

Lendio is a simple small business loan marketplace. The platform connects business owners with the lenders that they are most likely to obtain funding from. The platform offers connections with lenders who offer all types of cash flow increasing options like credit, loans, equipment financing, mortgages, accounts receivable financing, and more.

Who is Lendio and Where is the Company Based?

Lendio, Inc. was founded by Brock Blake, the current CEO, in 2011 and the company extended their first loan in Q4 2013, according to Wikipedia. The CFO is Chad Iverson. Company headquarters are located in Lehi, Utah.

How does Lendio Work?

If you’re a small business seeking funding, here’s what you might expect from Lendio. The application should take about 15 minuted to complete and will connect you with 75+ lenders. In many cases, you could get the funds you seek in as little as a day.

First, Lendio looks at your self-reported credit score range. Then, they find out how long you’ve been in business and how much money your company has generated over the last 90 days. After that, they ask what you need funding for.

Terms and conditions vary for business acquisition vs expansion or payroll, for example. So, by determining why you need funds, they filter out various lenders who aren’t likely to approve you.

When that’s over, the platform looks at certain aspects of your business that may help or hurt your qualification odds like if you have a prior bankruptcy or if you operate as a non-profit.

Once you’ve shared the above, the platform looks at the location of your business, your annual personal income, and your percentage of ownership in the company. Finally, there is a differentiator between Lendio and competitors: they want to know what factors are most important to you whether it be amount, speed, or cost of funding you’re looking for.

Once you agree to the terms and conditions (*which include the possibility that you’ll be contacted by auto-dialers and partners — probably why many people are asking “How do I get rid of Lendio emails?”), the platform will do a soft pull of your credit via Experian using your social security number. At this point, they don’t ask for your DUNS number.

If the platform can’t make the connection automatically, Lendio will ask you to manually enter your business’ financial information. You’ll be asked for your entity type and annual profits.

And, if you’re likely to be qualified through one of Lendio’s partners, they’ll let you know instantly and connect you to a possible funding channel.

If not, the platform lets you know precisely what’s standing in your way of getting funded and tells you what to do next.

And, when this happens, the system will suggest the next steps you can take to get ready for funding, which may include applying for a credit card or connecting with a partner like LegalZoom or Credible.

What Type of Funding Can You Get Through Lendio?

Via Lendio, you can access several types of funding types from their network of banks and online lenders. Now, let’s examine a handful of them and, for each, see some of the top lenders in their network.

First, here’s a quick summary.

Credit cards

If you’re looking for plastic, they have it. Just determine how much you need and the Lendio platform will try to help you determine which credit card issuer is likely to help you get it and at what rate. In many cases, you could be looking at 0% introductory APR offers, but this is likely to increase later. And, if you’re not quite ready for larget credit lines, Lendio might connect you with credit building options.

Some of the leading credit cards Lendio might match your business with could come from Chase, American Express, LenCred, Bank of America, Credit One, and Seek Business Capital.

Lines of credit

Through Lendio, line of credit amounts can range from $1K to $500K with interest rates between 8 – 24% and terms between one and two years. If your company qualifies, you may be able to access funds as quickly as within a couple of weeks.

For business lines of credit, Lendio might connect you with Kabbage, Blue Vine, Fundbox, Headway Capital, or Fundation among others.

Term loans

Term loans that you can apply for through Lendio might range from $5K to $2M with have interest rates as low as 6%. And, the terms can range between one and five years. Access funds obtained through the platform in as little as 24 hours.

Some of the term loan providers Lendio could link you with include OnDeck, Fundation, American Express, Funding Circle, Opportunity Fund, Credibility Capital, and Lending Club.

Startup loans

In most cases, startup loans can be the most difficult to obtain because financial institutions are more eager to lend to an established business. But, if you meet the requirements, you can leverage loans of $500 to $750K at interest rates between 0 and 17% to start a business. Access funds in two to four weeks and pay off your loan over the course of 25 years.

Startup loan offers that Lendio might match you with could come from Chase, American Express, or Bank of America.

Accounts receivable financing

Have outstanding invoices? Then, you may be able to leverage them as collateral through accounts receivable financing throught the Lendio platform. Get cash in an amount up to 80% of your current accounts receivables and pay factor rates as low as 5%. Get this type of funding in as little as 72 hours and pay it off in a year or less.

If you qualify for accounts receivable financing through Lendio, it might come from Eagle Business Credit, Internex Capital, BlueVine, FundBox, or ActionCapital.

What is Sunrise by Lendio?

In some cases, the next steps that the platform claims will set you on the journey to obtain working capital, loans, or credit via the platform will include signing up for Sunrise, the brand’s bookkeeping software.

If you create an account, you’ll be asked what your priority is. For example, are you looking to apply for PPP loan forgiveness, send and track invoices, or manage your banking?

When connecting your business banking information, Sunrise gives you the option to connect to major banks as well as smaller community banks and credit unions. From the dashboard, you can track income and expenses, send and receive invoices, and manage your business bank accounts.

This platform isn’t as automated or feature-rich as leaders like Quickbooks, but it seems to have everything you need for simple accounting and invoicing. Plus, invoicing only costs 1% per transaction, which is low.

Is Lendio an SBA-Backed Lender?

Lendio was one of 19 finetch companies participating in PPP loan application processing as of May, 2020. Yet, Lendio is not a lender. Instead, they match you to the most appropriate lenders in the United States based on your needs. And, the SBA does approve of their legitimacy.

So, Has Lendio Funded any PPP Loans?

As of July 2020, Lendio reported to have facilitated $10BN in total funding for the PPP program. And, despite the fact that August 8, marked the end of the PPP application period this year, Lendio is still accepting PPP applications in hopes that congress will extend the small business relief program. Still, the company does not provide direct funding.

Yet, according to many, Lendio is a good source for PPP application processing.

And, If They’re Not Funding, How Does Lendio Make Money?

Lendio doesn’t charge a fee, so how do they make money? Well, they don’t charge the small business owner. Instead, the get their money as a sort of finder’s fee or a setup similar to affiliate marketing from the Lenders who fund their applicants.

Think of Lendio as a broker who takes a cut from the big guy. Note that this typically means that the applicant may pay more than if they cut out the middle man and apply directly with a lender. But, the latter is a less convenient option.

Now, How to Decrypt Mixed Lendio Customer Reviews

On one hand, you’ll see 5-star reviews like the one above. Then, on the other, you’ll come across the naysayers. Take the following, for example:

Even if they make up a small portion of feedback, this caliber of review is enough to make you think twice about doing business with a financial company.

If you check out forums like Reddit, you might read about wonky system glitches.

Then, if you dig further, you may find that Lendio, Inc. is not BBB accredited and they have mediocre ratings on the platform.

So, what should you make of this confusion?

First of all, I need to point out that 2020 has been a whirlwind. I don’t know of a single company who didn’t face unexpected challenges this year. Our proverb for the year should be, “Have patience and trust the process.” Now that we got that out of the way, let’s just say that it is what it is.

Very few brands have a 5-star rating across the board. And, this doesn’t mean that they aren’t helpful or legitimate. TrustPiolt and BBB are designed for consumers, and most people don’t run to them when they have a great experience. But, if you have a bad experience, you want people to know.

Therefor, I recommend that you read the reviews, trust that you might expect similar results, but don’t judge too harshly based on the bad experiences. Many business owners have leveraged this platform and marketplace to grow their businesses. If the system is a good fit, you could be one of them.

+Bonus: A Quick Look at Lendio’s Franchise Offer

Before we wrap up, I want to mention another feature of Lendio’s offer in case you were wondering. Since 2016, they’ve presented the option to Franchise their offer for your own gain (up to 70% commission to keep for yourself).

In most US states, excluding California, Utah, and North Dakota, franchise opportunities are open to the public. So, if you live in any other state, you have excellent business networking skills, and you’ve got $55-65K to invest, this might be worth looking into.

Final Answer: Is Lendio Legitimate?

Yes, Lendio is an established, trustworthy company. They’ve helped many small business owners get financed. However, this is not the funding marketplace I recommend. Instead, I have more trust in Nav and feel that their offer provides more value while giving the business owner heightened control over the funding process.

If you want to learn how to build business credit so you can obtain up to $100K in funding in 30 days, enroll in Business Credit Workshop today.

A Straightforward Kabbage Review: Everything You Need to Know …Without the Fluff

By Joe

As one of this year’s SBA-approved PPP lenders, Kabbage has received an onslaught of poor reviews recently, essentially pulling their trust score down quite a bit in a very short time. Now, you’re probably asking if you should believe what you read. Is Kabbage a legitimate lender? And, should you leverage their financial services for your business?

After you read this, you’ll be able to answer these questions with confidence. Here’s what’s in-store.

What is Kabbage?
Kabbage Yesterday, Today, and Tomorrow
- Kabbage Business Loan Pricing
- PPP Loans via Kabbage
Final Summary

What is Kabbage?

While the platform is known for its small business funding, all Kabbage lending has been temporarily suspended for new and existing customers. While many companies across the globe were forced to close indefinitely in response to COVID-19, Kabbage chose to suspend their offer.

So, if you can’t access their core funding offer, what are you doing here? Well, the brand now offers several other business financial services. Let’s explore what’s up with Kabbage’s checking, payments, and financial insights platforms (accessible from one dashboard).

Kabbage Checking

Where there once were lending opportunities, you’ll now find earning opportunities.

Kabbage Checking offers FDIC-insured banking with 1.10% APY earned on funds, which they declare is the best deal you’ll find. I had my doubts about this claim, so I did some digging. Here’s how Kabbage compares to current checking account offers from some of the best business credit unions I know of.

To my surprise, Kabbage stacked-up well next to some of my favorite institutions. But, they don’t have the “best” offer. Consumer Credit Union, for example, offers nearly double APY or more on checking account balances up to $10K for those who use their debit card at least 12 times per month.

So, while it’s a good deal, it’s not the best out there. But, APY earnings may balance out against the competition for some companies who don’t plan to use their business debit card often.

Note: None of the above checking accounts demand monthly fees nor do they have minimum balance requirements. When you shop around for a business checking account, keep this in mind.

Kabbage Payments

Next on the list of financial services to leverage here is an online payment platform. Invoicing with Kabbage Payments costs 2.9% + $0.25 per transaction, which is five cents less than major competitors.

The invoicing cost is competitive. And, the platform offers email or web link billing. Also, you can leverage next-day deposits on eligible transactions. Any payments processed on the platform before 5 pm will be sent to your bank by the next business day at no additional cost.

Another promoted service within the payments platform is a unique URL where you can sell gift certificates from $15 to $500.

As with most online payment platforms, you will be asked to share your social security number when signing up (a sign that these financial services are not likely to help build your business credit).

Kabbage Insights

I might compare Kabbage Insights to Quickbooks. While it does deliver visual reports, it’s basically an accounting platform.

Theoretically, you can see all of your accounts in one place and start to get a clear understanding of your cash flow and revenue.

You do not need to use Kabbage checking or invoicing to use the insights feature, but I suspect you will receive more detailed insights if all of your accounts are connected.

Easily, you can link the system to your bank account including various smaller credit unions and community banks. While the dashboard claims that Kabbage Insights can be connected with PayPal, I wasn’t able to do so. Nor could I connect with Stripe.

These integrations aren’t necessary as long as all transactions are processed through your connected business bank or credit union accounts. But, it would be more convenient if they were to provide these options.

The Resource Center

Kabbage’s Resource Center is essentially just a blog with financial advice for business owners.

The articles here are pretty useful, easy-to-understand, and worth a look. Chances are, you’re likely to find helpful information here, whether a majority of Kabbage’s staff stays on furlough or not.

Kabbage Yesterday, Today, and Tomorrow

Launched in 2009, Kabbage was founded as an automated lending platform. By 2017, the company had grown to a net worth of $200 million, establishing itself as a leader in the business working capital corner of fintech.

Kabbage’s core offer included quick, easy loans with low credit requirements. The fees were transparent and small businesses could get approved for lines of credit up to $250K at a time. Most loans were extended within just a few days, making this a convenient option for companies that needed quick cash for their operations.

On the downside, the fixed-rate fees could be pretty steep, ranging from 24-99% APR. Early repayment didn’t save borrowers on interest, long-term repayment options were unavailable, and only companies with online checking or PayPal were approved by verifying cash flow.

With the onset of Coronavirus in March 2020, Kabbage furloughed workers and the situation looked bleak. Then, they began processing PPP loans, which ended up helping the company get back above water.

Recently, it was announced that American Express acquired Kabbage whose loan funds used to come from Celtic Bank. If the brand does offer working capital in the future, it will most likely come directly from Amex itself.

We’ll just have to wait around to see.

Kabbage Business Loan Pricing

Despite the fact that business loans are the core offer that has been temporarily suspended, it’s pretty important to understand how Kabbage funding works. The key to deciding if a working capital option like this one is right for you is to understand repayment terms.

So, if a business gets a loan from Kabbage, they will repay the funds over 6, 12, or 18 month terms. These loans have APRs that range between 24% and 99%. Each month, the borrower will repay a portion of the principal owed plus an additional 1 to 10% of the total funds toward the interest.

As with most loans, the interest you pay will be higher during the first portion of repayment. For example, a six-month loan requires 10% interest in addition to the principal payment for the first few months. After that, the interest amount decreases. Sadly, borrowers do not get a break for early repayment.

PPP Loans via Kabbage

In response to the US Stimulus bills passed in 2020, Kabbage offered Paycheck Protection (PPP) loans. After August 8, 2020, the Small Business Association (SBA) is no longer accepting new applications. So, you can no longer apply for one of these loans with Kabbage or anyone else.

While the brand seemed to leave some small business applicants unsatisfied, let’s be fair — nobody knew what they were doing as this was an unprecedented time for everyone. Furthermore, Kabbage was the second largest provider of PPP loans in the nation by application volume.

So, I would try to cut their reputation some slack. And, if there’s ever a similar round of funding offered, my guess is that the staff at Kabbage will know better than anyone else what not to do.

Final Summary

Right now, Kabbage’s desktop web app and mobile app both seem a little wonky. I’m assuming this is because they’ve furloughed staff and cut back on their service offer for the time being.

There’s no telling when and if they may offer their core loans again, as this will likely be dictated by the global economy as we rise back up from the effects of the Coronavirus. In the meantime, if it’s relevant for your operations, I would check out Kabbage Payments because the low transaction fees are great.

As far as the business checking accounts and insights platform are concerned, I would recommend going with more established solutions — at least until Kabbage revamps their offer (I wouldn’t expect this to happen until at least winter or possibly even Spring, 2021).

Kabbage is a legitimate FDIC-insured lender with an eleven-year track record of delivering convenient financial services to small businesses. If and when they reopen their doors for business funding, they are likely to come up with something fresh, unique, and trustworthy.

In the meantime, explore your other options. And, if you’re interested in learning how to obtain up to $100K in business credit in as few as 30 days, start here!