Domain Name Financing business — Lendvo enters

Firm offers capital to owners of domain names and online businesses.

A fresh firm has entered the domain name lending space, offering loans to domain name owners and digital businesses.

Lendvo was founded by Patrick Izzo and Ben Lichtman, nephew of the late Igal Lichtman (Mrs Jello).

The firm has a number of creative financing options for buying and selling domain names, as well as unlocking the equity built up in existing domain name portfolios.

The most straightforward loan is for the purchase of a domain name. But Lendvo can get a bit creative.

For example, if a seller has by now entered into a payment plan arrangement with a buyer, Lendvo can pay the full amount upfront to the seller. It can also work with the buyer to convert the payment plan into a more traditional loan, perhaps spreading out the payments beyond the original 12 months.

Lendvo will also provide a sales advance to a domain owner who is in the process of selling a domain name. For example, a domain owner who just placed a six-figure domain for sale with a broker but needs the cash now can take a loan, with the due date tied to an estimated sales date.

The firm also provides loans for other digital businesses, such as e-commerce sites that need money for inventory or operations.

Borrowers typically put 35%-40% down toward the purchase price, although the firm does loans with as little as 25% down. Interest rates are typically between 1.5%-2.9% a month with a 1% origination fee. Loans are personally guaranteed by the borrowers with the digital assets as collateral.

Lendvo right now has seven figures of capital to put to work. The firm competes with other domain name financing firms, such as Domain Capital.