Borrowing FAQs

Does a non-profit need to bring lenders to the platform?

No, a group of Lenders and donors are already on LENDonate’s platform and represent a new pool of potential supporters. However, a campaign is more likely to garner attention and be successful if users can see early support through loan bids and donations from the nonprofit’s existing network. For this reason, we recommend that nonprofits ask their network to demonstrate their support on the LENDonate platform early in the campaign.

Why do you encourage our board members to participate and pledge before our loan campaign starts?

The Board of Directors’ participation indicates a level of trust and commitment to the nonprofit that makes its financial case stronger. The Board of Directors’ involvement is one of the qualitative measures that we use to establish the ceiling interest rate on the loan.

What fees does LENDonate charge me for a loan campaign?

Fees are charged on actual funds received, not the campaign’s target funding amount. Typically, this will be 1% to 2%.

What if my loan offers don't reach the target?

As long as loan offers + donations offered exceed 70% of your target, funding is successful. For example, imagine that your target is $50,000, and by the campaign deadline you receive $30,000 in loan offers and $6,000 in donations. That $36,000 total is greater than 70% of $50,000 ($35,000), so you will be borrowing $30,000 and will receive a $6,000 donation when you receive your loan funds (less any fees).

Why do some loans on the Marketplace have such a low interest rate ceiling?

Some loans are guaranteed by their supporters. To see how this collateral guarantee feature works, click here. If you are interested, fill out an
application and we will contact you.