LoanMe Small Business Loan Debt: What Should You Do?
LoanMe is an online lender that offers personal loans, auto loans, and small business loans. It was founded in 2013. LoanMe’s small business loans division offers loans to small businesses in twenty-four states in amounts ranging from $3,500 to $250,000 with terms of up to ten years.
LoanMe typically serves small businesses who have an urgent need for funding and don’t qualify for the typical small business loans. Applications can be submitted online, twenty-four hours a day, seven days a week. Funds are granted at a rapid pace and are often approved on the same day that the application is submitted. Unfortunately the convenience and availability of LoanMe funding does not come without a price. LoanMe small business loans have interest rates ranging from 24% to 149%.
LoanMe Requirements
Small business borrowers should find it pretty easy to take out a loan with LoanMe. The requirements are not very hard to fulfill. LoanMe requires that a small business be a “for-profit” with a business checking account, having been in business for a minimum of two months, and that the business’ owner possesses a FICO credit score of at least 500. Documents must be provided, such as a valid ID showing proof of age 21 or higher, a business tax ID number, and a voided check. The good news is that the process of being approved for a loan with LoamMe seems to be simple enough. The bad news is that with such enormous interest rates and fees, it may be what puts a small business owner further into debt.
LoanMe Pros and Cons
One of the advantages of LoanMe is that it will grant loans to small business owners with weak credit scores in a very timely manner. Unfortunately the availability and convenience of this funding does not come without a cost, as LoanMe charges origination fees ranging from 5-10% of the loan amount (minimum $500) that are deducted from the amount of funding prior to the small business receiving it. Also, as mentioned earlier, interest rates for LoanMe loans are very high, ranging from 24% to 149%.
How does repayment work? Payments on LoanMe loans are paid monthly and are automatically deducted from the checking account of the small business. Because of the high interest rates associated with many LoanMe small business loans, it benefits the borrower to pay back the loan amount as quickly as possible. In fact, LoanMe’s own website numerically illustrates a scenario resulting in total financing costs exceeding 330% of the original loan principal!
LoanMe requires a personal guarantee. This means that personal assets become at risk in the event of default. If the loan defaults, LoanMe can file a Uniform Commercial Code (UCC) lien against the small business, implying that the business and its underlying assets also serve as a form of collateral.
Business Debt Settlement
A business owner can run into trouble after taking out a high interest rate, short-term loan, such as those that LoanMe offers. If you are a business owner who is currently burdened by high levels of business debt, the process of pursuing debt settlement may be the best decision for you and your business.
Debt settlement occurs when a debtor successfully negotiates a payoff amount for less than the total balance owed on a debt. This lower amount is agreed to by the creditor and is fully documented in writing. Though creditors are under no legal obligation to accept debt settlement offers, negotiating and paying lower amounts to settle debts is far more common than one may think.
How Can CuraDebt Business Debt Relief Help
At CuraDebt, we are proud to help those people and small businesses truly in hardship. Our experienced debt settlement professionals have successfully negotiated business debt settlements for clients who were facing serious financial hardship and stress that have resulted in large amounts of saving on the total balance owed. Contact us today to find out how we can help you. 1-877-504-0981