We launched a few days ago but already helped dozens of you. We also realized that Richie Lending seemed a little bit complicated to understand. So here is our Dummies’ Guide to Richie Lending.
I will explain both what happens on the client side and what we do in the background. That way you can picture the whole, in fact very rigorous, process. This way you can understand how we cut the cost of processing an application 300 times and how we can do it 200 times faster.
☝️Main concept: Customers are more involved in the process when working with Richie Lending than when they deal with a broker. The process is still extremely simplified and easy because of the innovative technologies that we utilize. Innovations helped us make it 100 times cheaper for you.
1️⃣ Initial Application. Let us understand your needs
Once you land on our website you are offered to complete a simple, very streamlined application process. The first few steps of the application ask about your revenue, the amount of money you wish to borrow, whether you have a particular product that you are interested in and so on.
These questions help us find the best product for you. For example, if you are a startup you need business loans that are based on your personal credit history. Alternatively, established businesses with high revenue are matched with top tier lenders with highly competitive terms.
2️⃣ Create an account. Complete your application
As soon as you create your free Richie Lending account, you are asked to complete your business profile and application. Here we more information about your business and yourself. We wish we didn’t have to ask those questions, however, our lenders need that data to generate offers. Remember, your data is secured, encrypted and we do not sell it to anybody else.
3️⃣ Link bank account or attach statements
Most of the business lending is based on revenue. In order to do that banks and credit unions need to access your business bank account. Historically, lenders asked for your business bank statements, however, we integrated an innovative tool called Plaid right inside Richie Lending. It allowed us to link your bank account directly to your profile via a secure connection. Now we can get all the necessary data without having you search for the bank statements.
Right after you simply link your bank account, using your bank’s login and password (☝🏿we don’t have access to your login and password), we analyze your balances, deposits, and deductions automatically within 2 minutes. The majority of our customers find linking the bank account more useful, however, you can still submit downloaded copies of your bank statements as well.
☝️Note: Technically, we are ready to submit your application once we have your financial data analyzed. Occasionally, we might need some additional information such as the purpose of your loan and your main concern. This process is called a merchant interview.
🧠Meanwhile, at the back-end
While you are busy preparing your application for submission, our servers and algorithms are busy trying to find the best loan for you. Aside from just handling your application and analyzing your financial data, our servers are pre-qualifying you for a loan. I will be honest lenders vary drastically and their requirements are all over the place. It includes minimum time in business, deposits, NSFs (eww), prohibited industries, prohibited states and so on. We spent hundreds of hours standardizing their underwriting guidelines (fancy term for requirements) so algorithms can match you perfectly with the best loan. We are constantly learning as well, we have some machine learning algorithms in place to improve our approval predictions.
4️⃣ We submit; you rest or upload your documents to save time
Let's say, the system found you great pre-qualifications. At that point it will slowly send them out to lenders; it will not spam them or throw your application around hoping 💩“sticks somewhere". First, your application is sent to lenders from the highest tier you are pre-qualified for and only to those that offer "soft pulls” (do not affect your credit). We will send your application to the lower tier lenders only if the higher tier lenders denied you an offer. Our system is exceptional for this industry, but since we don’t get paid by lenders at all (we sell at BUY rate as we said before), we are able to find an offer with the best terms for you, not the highest commission for us.
🧘🏼♂️While our system is busy doing all the above work, you are free to just sit, relax and wait for offers to arrive. There is one thing you could do though; if everything goes well lenders will need some documents from you (ID, voided check and the proof of ownership) to draft the contract. We can cut another few hours from the process if you upload those document ahead of time from your dashboard. Of course, we won’t send those documents to lenders unless you accept the offer, which is our next step.
5️⃣ Accepting offers and signing contracts
How long shall you wait for offers to arrive? We are asked this question a lot but this part of the process doesn’t depend on us. It all depends on what you qualify for. If your business is in very good shape and we sent your file to Top Tier Lenders, we are usually able to provide instant approval. Lower tier lenders are not that quick, unfortunately. And those from the fourth or fifth tiers are still in 1996 tech-wise tbh.
But once you receive offers, you can be certain that you are seeing the offer as it is, not altered in any way. You will see the true BUY rate, the term and the amount of the loan. We will also show you the SELL rate (the rate you would get this loan for if you went with some other broker) and that hypothetical broker’s commission. Here at Richie, we want to make it as transparent as possible because we want to become the future of this industry.
All offers are simply listed on your dashboard so you can research them, compare them and pick the most appealing offer. Accepting offer is as simple as clicking a button 🖲. Once you accept the offer our system automatically sends the documents you attached earlier 👆🏽(or asks you to upload them) to the lender and requests contracts for you to sign.
👀 We have to get some business done while waiting for contracts
As you remember we get paid by you, so once you accept offers, unless you are already a subscribed customers, you will be redirected to a subscription page. We have three plans: Basic, Pro, and Premium. Basic is free from monthly payments but you pay $199 for every loan you fund through us. Pro and Premium ($49 and $99/month respectively) allow you to get multiple loans at BUY RATE. Check our pricing page to get more information about our plans.
6️⃣ Final steps in our streamlined closing process
At this point, we are just a couple of steps away from getting you a loan. If everything goes well, we get your contracts back as soon as in 10-15 minutes. Contracts are available for you to read and sign right from your dashboard. Some lenders only need an electronic signature (DocuSign), while some get contracts signed in front of a video notary 🤳🏻(another high-tech thing that we implemented).
☝️Note: Some lenders have a required merchant interview at the end of the process, just to make sure they are not sending $100k to a non-existent person.
Once we are done with the paperwork, you are on a path to get funded the following business day. Go out, have dinner, work until late improving your business and expect the money in your bank account the next thing in the morning 💰! Congratulations!
It might sound hard and complicated, but in fact, it is not that hard. We tried to make it simple, streamlined and intuitive here at Richie Lending. Looking forward to getting you funded!