Oakland, CA, June 22, 2017 –(PR.com)– LENDonate, a fintech company, today announced the launch of its distinct hybrid, online lending platform for 501(c)(3) nonprofits. The first-of-a-kind, hybrid platform uses an innovative process that lets nonprofits source loans and donations simultaneously. LENDonate unites nonprofits with lenders, including financial institutions, philanthropic organizations, and accredited investors for quick funding of high-quality, low cost loans. LENDonate is the only marketplace lending platform that enables nonprofits to effortlessly expand their donor base while financing major projects or smoothing out uneven cash flow.
LENDonate was founded by Vivienne Hsu, CEO, a seasoned investment professional and nonprofit fundraiser. She was motivated by a desire to improve nonprofits' access to the low-cost funding, while providing high-quality, socially impactful investment opportunities for banks and philanthropists.
“LENDonate is creating a new ecosystem for nonprofit finances, one in which all sides win,” said Vivienne Hsu, founder and CEO of LENDonate. “The traditional loan experience for nonprofits tends to be long and arduous, generally accompanied by high costs. LENDonate brings all parties together to simplify and speed funding of high-quality loans, while empowering lenders to customize lending to meet their financial goals.”
Whether they are purchasing property or major equipment, hosting a large fundraiser, or waiting on a delayed grant, nonprofits occasionally need an immediate cash inflow. Turning to banks, foundations, or major donors for relief can be a complicated, time-consuming and expensive process as the nonprofit sorts through specialized funds, bank requirements and mounds of paperwork.
LENDonate streamlines this process by underwriting and structuring the loans on the marketplace where a large universe of banks, foundations, CDFIs, and accredited investors can tailor their financial support in forms of donations, loans, or a combination. Philanthropic lenders may offer rate reductions. LENDonate also assesses nonprofit borrowers for credit enhancement opportunities that lead to reduction of credit risk and borrowing rates.
For example, San Francisco-based Z Space is a nonprofit multidisciplinary arts organization dedicated to producing and presenting innovative, genre-bending new works for the stage. In addition to their production work, Z Space runs two venues in the heart of the San Francisco Mission District. They turned to LENDonate after paying 13% on a bank credit line while waiting for a foundation grant approval. As a result, Z Space was able to replace that high interest bank loan with a 3.6% interest rate loan sourced through LENDonate’s marketplace.
“LENDonate helped us get a much lower rate, and was probably a 2-3 month time savings over the foundation,” said Lisa Steindler, Executive Artistic Director of Z Space. “By providing quick access to affordable money, LENDonate’s distinct loan-to-donation option enables us to think bigger and take more risk as we carry out our mission. It also lets new people get to know Z Space. The more we can put our name out there and have people become more familiar with Z Space, and support what we’re doing, the better.”
Financial Institutions Can Grow and Diversify Community-Driven Lending
Financial institutions have multiple goals: expand their business, diversify their loan portfolio, meet government CRA requirements, and prudently manage risk. LENDonate helps banks, credit unions, CDFIs, and foundations diversify by presenting a wide range of financially qualified borrowers, with a focus on high quality loans. In addition, LENDonate enables financial institutions to share risk by combining different capital streams into one loan package.
Robust Repayment Process Made Easy and Scalable
LENDonate facilitates co-lending of traditional and philanthropic lenders by uniquely blending different lender rates into one simple, aggregate borrowing rate. During repayment period, its one-of-a-kind process partitions a borrower’s repayment such that each lender receives repayment amounts based on their own lending rates.
Easy Loan-to-Donation Conversion
In addition to return-oriented loans and pure donations, LENDonate’s unique loan-to-donation conversion feature allows lenders to manage their own planned giving or to financially reward borrowers for meeting desired milestones, by converting a portion of the loan into donation or grant anytime during the repayment period.
LENDonate is initially available to nonprofits in California. To inquire or get started, please visit www.lendonate.com or contact Michael Darnaud at [email protected] or 650-248-5350.
LENDonate is an open, online lending platform that unites qualified nonprofits with lenders for quick funding of high quality, low-cost loans. The platform enables nonprofits to secure financing from previously untapped sources, receiving attractive loan rates and donations. Uniquely, marketplace and philanthropic lenders join forces to fund major projects in ways that fulfill both their financial and charitable goals. The company is headquartered in Oakland, CA. For more information, visit www.lendonate.com.
This press release is for informational purposes only and does not constitute an offer or solicitation to buy or sell any security.
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