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I was recently approached by Hawkeye Management for business loans. Once we reached the application stage, it changed into LenCred. It seems the two are the same company. One representative called me after I filled out my information. I wrote $8,000 for my 2013 income, which was true. I also told him my typical annual income is $24,000; last year was low because I was abroad. He said I should use $24,000. He asked if I have roommates and added their annual income so that I could have a household income of $70,000. I was not very comfortable but it seemed it's their typical and routine practice. My roommates and I are not related.

And then I got a list of banks to which they submitted my application. I thought there would be just ONE bank for ONE business credit card, but it turned out that they submitted my application to 7 banks (who knows, maybe more), which at least two are for personal credit cards. My credit score is 750+ and I can easily get personal credit cards. It does not make sense that I pay LenCred 9% brokerage fee for some thing I can get for free! It seems some of the banks can approve about $5,000. But who want to manage seven more credit cards? I already have three. LenCred should know better that too many credit cards can hurt my credit score.

So their strategy is to send my application to multiple banks and try the luck. I thought they had resources I did not have the access to but it seems everything they did can be done on my own (the same for everyone else). In their email, they highlighted ”Remember DO NOT mention you are working with a third party.“ This made me uncomfortable. I did not want to lie. A bank called me. I honestly told them the application was submitted by a third party. The bank said they were not aware of that. LenCred's work is entirely based on my own credit score!

So they wanted me to lie about my household income as well as how I applied. This is like coaching me how to fraud. It's against business ethics, and if bad things happen, I have to suffer the consequence of lying. Their manager said they would have collectors to collect $450 from me for a personal credit card with a line of $5,000. Welcome!

My recommendation:

1. Don't trust Hawkeye Management/LenCred. They are not introducing you to a dedicated bank. They just try your luck. You can try you luck too.

2. Don't work with any firms that teach you to lie. Hawkeye Management/LenCred should be removed from you list of consideration.

I attached a screen shot of their email.

I sincerely hope this message can help other entrepreneurs that are raising money. Good luck!

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Anonymous
#954639

25000 businesses helped, 17 complaints.And a very detailed response from the Owner of the company n question?

WAY TO GO LEDCRED !!! Keep up the good and obviously caring work !!!

There's always has to be someone upset about paying a fee.....impressive!

Anonymous
Orlando, Florida, United States #939714

I used Hawkeye Management for credit repair after my divorce, they did an excellent job for a reasonable price. My score increased over 100 points.

Anonymous
#913781

When I started with this company I did not know that there were going to put 11 enquires on my credit report, now they have ruin an opportunity that I had to get a loan of $250000 because of their negligence in the way they operate, they just apply as unprofessional which they should know which bureau to apply for in which they have no knowledge of it. I don't think that company such as this should exist for consumer and owner should be in jail by ruin someone else life.

Anonymous
to EAV Atlanta, Georgia, United States #913786

I totally agree.This company can be a pain in the butt.

Believe this is just a start.

They will keep bothering.I recommend that you report their misbehavior to authorities as I did.

Anonymous
to EAV Capitol Heights, Maryland, United States #927387

Hi EAV,

Can you explain how you went to Hawkeye if you already had an opportunity to get a loan for $250,000?Also, what company was that loan with?

Was it just based on credit also?Thank you in advance for your response!

Anonymous
#883071

Yes these people contacted me after I filled out some info online. She didn't tell me over the phone that my loan would be coming from some other bank.... Wow that's a big plus she forgot to add.

I'm staying away from this.....

Anonymous
Gloucester Township, New Jersey, United States #856907

I want to respond to this complaint.My name is Tom Gazaway.

I'm the founder of Hawkeye Management. We recently changed our name to LenCred. We are the same company with the same people but we did recently change our name.

As a company with established core values of teamwork, excellence, bottom line performance, and embracing change it is always dis-heartening for all of our 35+ employees and team members for someone to say these things about us. Nobody wins when these types of situations happen with our clients.

Over the past 5 years we’ve received formal requests for financing from over 25,000 entrepreneurs and small business owners. We’ve been fortunate that several thousand of those hard working people have become clients of ours who we have helped with their funding needs.

So what about this client who is making these claims? It’s interesting that he did not include his name in his complaint but we do know who this is from. I'll share a few things that were left out of his complaint.

Initially, he demanded to one of our advisors that we give him a special deal and charge him less than we charge everyone else for the funding plan that he qualified for. We informed him that we don’t negotiate special deals just because someone wants to be treated different. Some of our funding plans have no fees and some of them have fees. When we charge fees those fees are always competitive and in-line with industry norms.

We informed...

This client had a business that had not been established for very long and he didn’t have revenues and net profits that would merit bank financing in our opinion. That was okay because for the last 5+ years we’ve developed and refined a credit card financing program that has become very popular among early stage entrepreneurs.

It helps small business owners avoid all the common mistakes that are commonly made with the most popular form of small business financing (credit cards). Simply put, it would allow him to separate his personal and business credit while also protecting, preserving, and improving his personal credit profile. We are passionate about helping our clients learn how to treat their credit as an asset while they borrow money and grow their businesses.

Because this client demanded some answers about interest rates with our various lenders we gave him a call with our funding coach prior to him even getting his funding. So it was explained to him by his advisor and then by our funding coach that he would be receiving multiple credit cards and that these credit cards would be both business and personal credit cards.

As a side-note, over 95% of our credit cards that our clients obtain in their initial funding phase have 0% offers for 6-18 months and we can't promise or control what the interest rates will be after the 0% offers end. So that is what is always told to each prospect and client. These plans are put together based on the credit profile of the borrower, their industry, their location, and a variety of factors. So, for example, a startup company in Texas will have a different plan than an established company in Washington.

Additionally, he signed our contract which once again informed him that he would receive multiple credit cards. Then he also went through a recorded compliance call where, once again, he was informed about the details of his funding plan and that he would receive multiple credit cards and some would be personal and some would be business.

One of the ways that a small business owner can treat their credit as an asset and improve their credit profile is by increasing their available revolving credit that shows up on their personal credit profile. This is one of the reasons why many small business owners should obtain some additional personal credit in the form of credit cards. Then we also give each of our clients access to our FICO Pro Certified funding coach who helps to ensure that they get the most out of their funding and re-enforces the way our programs are designed to work.

When our program is followed you can obtain low-cost funding, separate your personal and business credit, and you can improve your personal credit. This client then proceeded to tell us that he was not going to communicate with us anymore and that he was not going to pay us. So he had no desire to talk to us or to abide by our contract. Interestingly, this negative review showed up just hours after we sent him a very well-worded and professional email notifying him that we would prefer to work this out with him and talk it through with him but that if he was unwilling to talk with us then we would have no option but to hold to our contractual relationship with him.

That meant that if he did not pay the fees that were due to us that we would be sending his file to collections. Admittedly, we did not handle the discussion with him well about his personal and household income. We had a new processor who had that discussion with him and it was not handled well by us and we did not follow our policy on that. We listened to the recorded call and we didn’t handle it well on our end.

Like many other things in this complaint, it didn’t happen exactly as he claims but we own that one and our rookie processor did not do a good job with the client on this. One of his other criticisms is that we are a third party and he shouldn’t mention that he is working with a third party when speaking to a couple of the lenders. There is context here that may help everyone’s perspective. The majority of the lenders in his plan did not need to speak with him.

We work with most of them directly and at our discretion. We’ve been formally trained as small business lenders. We have several hundred bank and non-bank lenders that we can work with. We work directly with over 90% of those lenders.

However, there are some lenders who prefer not to work with third parties. However, they offer excellent financing options so we include them in some of our plans and we tell our clients that this is one of the lenders who does not want any third party involvement. We don’t do anything illegal or unethical but if the lender offers a good financing solution for our client then we have made a decision to still help the client obtain that funding even though the lenders prefer to work directly with the borrower. That’s a decision we’ve made and this client is likely lacking a perspective and a basic understanding of the strategy behind his plan.

That’s our fault for not accurately relaying that information to him but when he refuses to talk with us then it’s also hard for us to clear up his confusion and make these things clear. Lastly, this client has not paid us a single dollar yet. So we’re talking about a situation where we’ve spent lots of time with the client, we’ve clearly explained our funding program to him (via an advisor, a funding coach, our contracts, and a recorded compliance call), we put together his funding plan, then he started to get his funding. It was at that point when we were to begin invoicing him that he suddenly had a problem with everything.

We would love to talk with him directly and work this out but this client has chosen not to do that at this point.We will continue to strictly abide by our contractual relationship with him at this point since he has left us no other option.

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Anonymous
to Tom Gazaway #869806

Very impressive response, but you should definitely take this guy to collections. He sounds like most of the other whiny babies on this site.

Anonymous
to Anon Miami, Florida, United States #928283

The guy is right because the same thing happened to me and I got the same email.

Anonymous
to Tom Gazaway Asheville, North Carolina, United States #893121

I will personally vouch for LenCred / Hawkeye Mgmnt.I have been doing business with them for years.

In fact, I believe in them so much....I became a referral partner.Don't believe all complaints that you see online, some people are just mad at the world and will take it out on anyone that can find as a "whipping post".

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