There is a new lender for domain names, Lendvo.com.
The founders of the company are Ben Lichtman and Patrick Izzo
Making loans on domain names is only one of Lendvo.com products which include loans on income producing websites, buying out installment sales of domain names or leased domains, factoring and business loans.
Here is how the company describe itself:
“Lendvo is a Alternative Lending and Financial Technology startup headquartered in Alexandria, VA. At Lendvo we believe that eCommerce and other digital businesses are highly under-served by both traditional and even alternative lenders.
Lendvo leverages proprietary systems, digital know-how and alternative lender style financial underwriting to underwrite tough to crack digital business credits. We blend digital analytics and financial analysis to paint a comprehensive picture of our potential borrowers. Because of our confidence in understanding digital metrics, as well as our ability to collateralize and secure underlying digital assets, we can extend credit to borrowers that other lenders won’t.”
Most readers of TheDomains.com will be interested in Lendvo.com domain name lending program.
Compared to the largest lender in the domain space DomainCapital.com there are quite a few difference.
Lendvo.com looks at the credit history of the borrower, not just the value of the domain(s) which allows them to lend on more than just the domain value but also requires a credit check that meets their underwriting requirements.
DomainCapital.com generally want longer term deals of 36 months up to 60 months, many times with no prepayment allowed.
Lendvo.com lends for a a maximum term of 18 months and will engage in very short term loans of just 90 days.
Lendvo.com lending limits are lower than DomainCapital.com.
Lendvo will loan a maximum of $100,000 per domain name but that will probably suit the vast majority of domainers.
Also all loans made by Lendvo are recourse loans.
Lendvo will loan up to 70% of the purchase transaction for a domain name, or portfolio I believe Domain Capital typically requires 40% down from the buy of a domain.
Here are the products they offer:
Business Cash Flow Loans:
Term loans ranging from 1-12 months, $5k minimum, market rates. Proceeds can be used for any business purpose. Business must have cash flow (parking rev, advertising, affiliate etc).
Purchase Finance:
We finance up to 70% of a purchase transaction for a domain name, portfolio or developed web business. Loans ranging from 3-18 months, $5k minimum, market rates.
Equity Out/Sales Advance
Owners of domain names and websites can take a loan against the value and/or cash flow of their digital properties. Term loans ranging from 1-18 months, $5k minimum, market rates.
Refinance
We can refinance an old debt from other lenders to potentially offer: more money, a lower rate or reduced term payments. 6-18 months, $5k minimum, market rates.
Payment Stream
Have an installment purchase agreement or lease?
We can offer a loan secured by future installment or lease payments. In some cases we can buy the entire contract out as a structured settlement. Duration from 1-24 months, $5k minimum, market rates
Lendvo.com does have a referral/affiliate program but we are not part of the program nor is this post.
Hi Michael — I hope all is well.
Domain Capital offers terms that can be as short as 24 months. As all of our clients are aware, we do offer the ability to prepay the loan. We do a credit check on every client, but at the end of the day, we are lending against the inherent value of the premium domain. We have done deals as low as $10,000.00 USD and as high as 7-figures USD.
Please let me know if anyone has any further questions with regard to our services.