Report: #1015288

Complaint Review: Ripoff Report | Lenders Cloud Verified TRUSTED Business | Ripoff Report Verified™ …businesses you can trust Lenders Cloud strives to bring our clients the best products available, from business financing to credit card processing. Lenders Cloud partners with your business to not just acquire resources for you but to be the last finance consultant you ever deal with. Lenders Cloud is the premier provider of working capital in the United States.

  • Submitted: Sat, February 16, 2013
  • Updated: Wed, January 25, 2017
  • Reported By: Store Owner — Baltimore Maryland United States of America
  • Lenders Cloud Verified TRUSTED Business | Ripoff Report Verified™ …businesses you can trust Lenders Cloud strives to bring our clients the best products available, from business financing to credit card processing. Lenders Cloud partners with your business to not just acquire resources for you but to be the last finance consultant you ever deal with. Lenders Cloud is the premier provider of working capital in the United States.
    220 Newport Center Dr
    Coral Beach, Florida
    United States of America

Show customers why they should trust your business over your competitors...

Ripoff Report Verified™ REVIEW

EDitor's UPDATE: Positive rating and recognition has been given to Lenders Cloud for its full commitment to quality customer service.

Ripoff Report's discussions with Lenders Cloud have uncovered an ongoing dedication by the company to total client satisfaction. This means that clients can expect that the company will work towards finding a mutually satisfactory resolution to any concerns. Lenders Cloud listens carefully to client concerns and sees them as an opportunity to learn from past mistakes and become more efficient as a company in the services offered and the support for those services.

Lenders Cloud 's principal, has informed us that his personal philosophy is that solid relationships are at the heart of the business. As a successful businessman, Eric feels "It is critical to listen to his client’s needs and respond promptly properly. [continued below]....
....." By always putting his customers first, Eric hopes to grow Lenders Cloud to be a power for good and fair pricing in an otherwise unforgiving industry.

One of the things Ripoff Report learned in the course of its review is that typical customer feedback reads, "Lenders Cloud truly communicate all aspects of the service in a timely and effective manner. We are very pleased with the responsiveness that the employees show us. They are serious about meeting commitments, and deliver on their promises."

Lenders Cloud is Ripoff Report Verified
Ripoff Report Verified™ .. part of Ripoff Report Corporate Advocacy Business Remediation & Customer Satisfaction Program.A program that benefits the consumer, assures them of complete satisfaction and confidence when doing business with a member business..

The information provided in this report below is based on comments made by Eric during an onsite inspection held by a third party verification company with no biases towards Lenders Cloud.

Lender Cloud presents merchants with various options for business financing versus just one offer. They have 25-30 different options for their merchants which set them apart from their competitors. Eric stated the following about his company, "typically when somebody's only giving you one offer that means that they're making the most money off of it. We base our business model more on providing service and long-term, multi-step solutions to merchants. So we're not a big shot, but we do more custom work for customers."

Leads for Lenders Cloud are primarily obtained through cold calling through purchased lists. Eric went on to explain the sales process for his company, "we reach out to them, and see if they need more [or any] financing. If they say yes, we get them out an application and an informational packet. And then a lot of the times they don’t need financing right then and there, but they want to have it on file, so our guys reach out to them... on timed intervals to make sure they’re good. If they do need financing they send in the application and then we put them through our process."


During the on-site interview, Eric was asked to describe a situation where a client was not satisfied with the level of service they received. Eric expressed that they don't receive very many complaints, "it’s a loan. So, there’s no fiddling with it. We are the broker. We collect the sources for them, they pick one, and then we put that paperwork in front of them. One of the good things about being a broker is you have a layer of protection there, in the lender, because the lender wants to make sure that the consumer has all their information, or understands the loan completely before they take it." He additionally stated, "when we’re going through the process: number one we don’t charge up front. So we work for free until we get them funding. Which I’m sure mitigates 99.9% of any complaint that we get."

When asked to comment on complaints posted on Ripoff Report's website Eric expressed that the comments were a personal attack by an anonymous third party, "[the] complaints are all more focused on damaging the ownership versus damaging the company. If you really read into them they’re everything from calling bashers to... child molesters and... everything in between. Making up fake companies that we had no involvement in, like the timeshare exchange or immigration exchange, saying that we were importing illegal aliens and then ripping them off. All these really outlandish things." To further assure future and current clients Lender Cloud undergoes several background checks in our to provide their services.

When asked what type of changes they have made to honor their commitment to making things right with the consumer per the request of Ripoff Report, Eric stated, "we’re more protective of our name and our situation... and really who we deal with, at the end of the day."

Lenders Cloud is proud to be a part of Ripoff Reports Corporate Advocacy Business Remediation and Customer Satisfaction Program, "I think for me it gives a level of comfort that we will have monitoring in place, as far as this is concerned. Ripoff Report has very high domain authority and with this giving a positive write up and really... making sure that... we have somebody internally there’s that’s watching. Just in case something like this were to happen again... either to the ownership here or to the company itself. And then being able to deal with that in a private manner is, I think, is worth its weight in gold."


" Lenders Cloud is unlike any funding source available today. We provide a service and product which will leave you feeling as if you made an intelligent decision based on variety vs. a desperate need based loan you have no control over. Without small business our country would be doomed. Lenders cloud wants to empower those small businesses to make smart decisions on the funds they take and the impact it could have on their business.

Lenders Cloud 's account managers and agents have over 100 years of experience in business financing and welcome any challenge. Lenders Cloud takes employee satisfaction seriously as well. Employee feedback and surveys reveal comments such as this, "Working at Lenders cloud gives me the ultimate in flexibility and freedom to serve my clients in every way possible. I am one of the lucky ones because I love what I do. "

Ripoff Report was pleased to learn that Lenders Cloud 's past and current approach to business is focused on its pledge to total commitment towards client and employee satisfaction.


Lenders Cloud recognizes that complaints posted on Ripoff Report (whether true or not) are issues that need to be addressed, not ignored. If handled correctly, complaints can be valuable learning opportunities. With the feedback generated by Ripoff Report's review, Lenders Cloud has made organizational changes allowing its clients and employees a more streamlined approach to problem resolution and a commitment to a great client experience.

In summary, after our review, which included discussions with Eric, Ripoff Report is convinced that Lenders Cloud is committed to quality delivery of services resulting in total client satisfaction.

How does a business get Ripoff Report Verified™

The member business allows Ripoff report to email everyone from the past. Those who respond to Ripoff report with a valid complaint must be take care of.. they have made a commitment that if anyone contacts Ripoff Report in the future, they will make things right within 14 days. The member business must err on the side of their customers. Otherwise the member business is off the program.

Ripoff Report has determined that Lenders Cloud meets Ripoff Report Verified™ standards which include a commitment to make a good faith effort to resolve any consumer complaints. Members of the Corporate Advocacy Business Remediation and Customer Satisfaction program do pay a fee for our on-site review, 24-hour monitoring and for support with customers to resolve any disagreements.

Ripoff Report sends a 3rd party service to do an onsite inspection of the new member business. The on-site inspection /review does not mean that the products or services offered by the business have been evaluated or endorsed by Ripoff Report, and has not made a determination as to the business' product quality or competency in performing services. We can verify, that Ripoff Report went to the business, verified their business or “work from home business”, there for, if a customer in the future does not get treated correctly, Ripoff Report can get the problem resolved. If not, and the customers is right, the member business will be taken off the Corporate Advocacy Program. Remember, Ripoff Report emailed every customer from the past that filed a complaint to make sure the member business made things right with customers from the past. Again, to err on the side of their customer, those from the past and those in the future.

Read more about why consumers should feel confident when doing business with a member of Ripoff Report's Corporate Advocacy Business Remediation & Customer Satisfaction Program. Yes, it’s a long name for a program that does a lot for both consumers and businesses alike.

Read about Ripoff Report Corporate Advocacy Business Remediation & Customer Satisfaction Program, a program that benefits the consumer, assures them of complete satisfaction and confidence when doing business with a member business. This program works.

As a matter of policy, when a business becomes a member of the Corporate Advocacy Program they agree to allow Ripoff Report to contact every client who filed a complaint so they can make things right with them. In order to confirm that the complaints were resolved, Ripoff Report is copied on all responses so we can insure that the member business did right by their customer.



*The Factor Exchange Merchant Cash Advance Scam* 75% Interest Rates, Phony Money Factor Quotes. Coral Beach, Florida

When you were child, you were probably taught to never use certain four letter words. In the merchant cash advance space, there is one word letter word that you never should be using when presenting this product to a merchant, "L-O-A-N." avoid this company Factor Exchange

Any person selling a true merchant cash advance product that is a factoring product, meaning you are purchasing a merchant's future credit card receivables at a discount, you need to understand the difference between a loan and a factoring product such as a merchant cash advance. (Note: there may be some "loan" products offered by companies to merchants that this article may not apply to, so I would check with your merchant cash advance provider whether or not they are offering a loan product or a factoring product. Almost every product I know of in the merchant cash advance industry with the exception of one or two is NOT a loan product). There are various state usury laws (usury is typically defined as the the maximum interest rate allowed by law) that a loan product must comply with.

The first distinction between a loan product and a merchant cash advance is there is no fixed time period with a merchant cash advance. For example, if you walk into a bank, every loan product they offer has a fixed time period - eg. a 30 year mortage, a 5 year auto loan, a 5 year SBA loan, etc. With a merchant cash advance, a merchant is simply agreeing to sell a percentage of their future credit card receivables at a discount and allowing a merchant cash advance provider to collect those payments by taking a set percentage of a merchant's future credit card processing sales. For example, lets say you purchased $20,000 worth of future credit card processing receipts for $16,000 from ten different merchants on the exact same day. And in this example, the agreement called for the merchant to collect 20% of the merchant's future Visa/Mastercard sales until $20,000 was collected and the advance was paid off. Each of the ten different merchants will pay off the advance in ten different time periods - one merchant may take seven months, another nine months, another twelve months, etc. Again, unlike a loan, there is no fixed time period with a merchant cash advance.

Reasons Why Not to Use The Factor Exchange:

Another distinction between a loan and a merchant cash advance is there is no fixed monthly payment. A loan requires a fixed monthly payment amount (or in the case of some mortgages, a fixed bi-weekly amount). With a merchant cash advance, there is no fixed monthly payment as we are taking a percentage of a merchant's future credit card sales. For example, if a merchant's cash advance contract calls for 20% of their future Visa / Mastercard sales and they process $10,000 worth of these sales in Month 1 after taking the advance and $5,000 worth of future Visa / Mastercard sales in Month 2, then the amount they will pay back the merchant cash advance provider will be $2,000 Month 1 (20% of $10,000) and $1,000 Month 2 (20% of $5,000). As you can see, unlike a loan, there is no fixed monthly payment with a merchant cash advance. In addition to a legal difference, there is also a cash flow benefit to the merchant with a merchant cash advance compared to a traditional loan. That is, if their sales slow down, the amount they owe their merchant cash advance provider slows down since it's a percentage of their future sales that determines how much they pay back each month on their advance. With a bank loan, a merchant has to worry about making a fixed monthly payment to the bank regardless of how sales were that month. If they can't, they can default on their bank loan which can include the bank eventually foreclosing on personal assets that the borrower may have had to pledge.

Another difference between a merchant cash advance and a loan is there is no interest being charged with a merchant cash advance. A loan has an interest rate, while a merchant cash advance does not. A merchant cash advance involves buying future credit card sales at a discount. For example, if you are buying a merchant's future credit card sales for .75 on the $1, then you would purchase $10,000 worth of future sales for $7,500. You are buying these sales at a 25% discount, this is a discount (remember, this is a factoring product), not an interest rate. One of the reasons why there is no interest rate is because as discussed above there is no fixed time period to collect these sales purchased, it can take seven months, twelve months, fifteen months, etc. The time period it will take to pay off the advance is unique for each merchant as it is based on how much credit card sales the merchant actually processes since they received the advance.

One of the key differences between a loan and merchant cash advance is their is no recourse with a merchant cash advance. One of the key attributes of a loan is there typically is a personal guarantee. A true merchant cash advance should be a purchase transaction and there is no recourse to the owner should they legitimately go out of business. With that said, this is not a free for all for fradulent merchants to take a cash advance and not pay it back. Most merchant cash advance provider contracts will have a fraud guarantee on the merchant personally. Some examples of a fraud guarantee where a merchant can be held personally liable are if a merchant misrepresented the information on their application that the merchant cash advance provider used to approve them, sells their business without paying off their balance on the advance, and/or disrupts the merchant cash advance provider's ability to collect the future credit card sales they purchased (this can be done by changing compatible processors, blocking ACHs, changing bank accounts, etc.)

In conclusion, when selling a true merchant cash advance product, you should be using the correct terminology such as "advance" instead of "loan" and "discount" instead of "interest." If a merchant asks you what is the difference, you should be able to point out the attributes of a merchant cash advance discussed above which are no fixed time period, no fixed monthly payment, no interest rate and no personal recourse.

To properly inform the merchant the type of product you are selling, I recommend putting a notice on your website, marketing materials, etc. that indicate it's a merchant cash advance. Something to the effect of "Note: This is a merchant cash advance factoring product and not a loan product."

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