Every business needs capital because everything costs money, from employees and inventory to utilities and even garbage removal. That is kind of unfortunate but we need loans. And as I developed and co-founded an online business lending marketplace about 8 months ago, I realized that even looking for capital costs money. It is especially hard for those looking for subprime loans, with credit scores below 650. They simply have no access to average interest rates; sometimes those rates would hit as much as 500% APR. I am not kidding.
I had to do something about it, so I developed 🚀 Richie Lending - an online lending broker that sells loans at BUY RATE.
What does it even mean?
With a simple subscription, you get access to Secret Interest Rates only lending brokers had previously access to. Richie Lending saves you on average 14% or up to $20k on every single business loan. 🤯🤯🤯
🧞♂️ A tiny secret. What is the BUY RATE?
BUY RATE is a secret rate at which lenders give loans to brokers. Brokers then present loans at SELL RATE which is usually 10-14% higher. Imagine you are a business owner and applied for a loan with one of the major BUSINESS LENDING BROKERS. That broker sends your file to a number of lenders and gets back a variety of offers.
Usually, an offer looks somewhat like this:
Amount - 100k
Term - 12 months
Buy Rate - 1.18
Sell Rate - 1.28
The above offer means that the lender (Bank, credit union or smth) is offering you a 100k loan for a year at about 28% APR. However, the bank’s TRUE APR is only 18%, so 10% is your broker’s commission. That is a freaking $10k. Where does that money go? Well, some broker shops provide free masseuse to their salespeople 🤦🏾♀️. Fascinating right?
It is just a beginning, some brokers charge an additional Broker Fee, up to 5% from the initial loan amount. Here we go, with a simple click you paid $15k out of your pocket for your broker’s Louboutin shoes 👞.
Here at Richie Lending, we want to give those $15k back to you, so you can ACTUALLY grow your business.
🧠 How could we do it?
Simple answer - we automated everything. We were able to automate 75% of the process at my previous startup. We automated almost 95% of the process at Richie Lending. Everything from receiving your application, pre-qualifying you for a loan, accessing your bank account, submitting to lenders, receiving offers and even notarizing contracts is automated. As a result of automation, we spend 300 times less money to process a loan than any broker in the country; we also do it 200 times faster. That's why we can do it 100 times cheaper.
🤷♂️ We sell cheaper than lenders themselves
It is a myth that loans are cheaper if bought directly from lenders. If you go to the lender directly, the lender will still sell you at the SELL RATE. Why? Because in that case lender’s own sales team receives the commission.
🔍 Fully transparent system
We made a full commitment to making our job as transparent as possible. You will see offers from lenders as they arrive, not altered or corrected in any way.
📣 We help people with bad credit or no credit at all
This product is specifically beneficial for business owners with bad credit. Because broker margins are higher if you are in the subprime business loan market.
💰 Simple subscription or flat per-loan fee
Our subscription plans are as low as $49/month. With a subscription, you get unlimited access to loans at BUY RATE, just imagine Costco for business loans. Don’t want to get a subscription? Try our Basic Plan and pay a simple flat fee of $199 per funded loan.