Lendtable charges a $10 monthly platform fee and uses a profit-share model, which means we charge a flat 35% of the profit customers make by maxing out their Employer Stock Purchase Plan (ESPP). This percentage is a little higher than our 401(k)+ service because we generally have to advance much larger amounts for smaller profits.
In the profit-share model, where does the profit come from?
For our ESPP service, the employer discount is the profit. This is because once the shares are sold at full market value, the employee will realize a profit of the difference between the discounted price at which they were purchased and the market value.
In what cases would I lose money?
There is only once case in which a customer may end up paying for Lendtable out of pocket:
If the customer does not sell their employer’s shares right away and the share value drops below the discounted at the time of purchase.
If the discounted shares are sold immediately upon receiving them, this is unlikely to occur. For this reason, we do not service accounts where there is a holding period preventing the customer from selling their shares immediately.
When is payment due?
Customers pay for our ESPP service at the end of each offering period. An offering period is the period that the employer withholds their employee's wages to contribute to the company's ESPP. The frequency of offering periods differs from employer to employer and can vary between one to four times a year. At the end of each of these periods, the Lendtable balance to date will be due.
The reason Lendtable request's payment at the same time that the customer’s shares are transferred to them by their employer is to prevent the shares from losing value before selling.
What exactly is a Lendtable Balance?
A Lendtable Balance is what a customer pays at the end of each offering period.
The principal, or dollar ($) amount released throughout the offering period + 35% of ESPP profits = Lendtable Balance
This balance is displayed on the dashboard and will increase throughout the contract as a customer receives monthly payouts. At the end of each offering period, the balance will also include 35% of the total match we helped the customer earn while using Lendtable.
How does Lendtable determine the profit-share portion?
Lendtable charges a flat profit share percentage of 35%. Though our rate is fixed, employer’s offer varying discount percentages. The specific plan information for each potential customer can be found on their Lendtable Breakdown, once their application has been approved.
When will I know my profit-share portion?
Potential customers will see their profit-share breakdown during the onboarding process, before **signing their contract and beginning service.
During the onboarding process, applicants enter a few pieces of basic information and upload their paystub and benefit policy. Then, our team reviews the application, and if it is approved, our platform determines the dollar amount that our 35% profit-share comes out to depending on the employer’s plan details.
The applicant has the choice to continue or decline this breakdown. If they decline, they are prompted to choose a reason for declining and are given the option to let our team know they would like to be contacted by a representative to create a different or more flexible payment plan.
Factors to consider
Not everyone's Lendtable Balance will be the same, even if their ESPP policy is similar. Here are more details into the variables we use to determine how much a customer will keep at the end of their contract.
Each employer may offer a different share discount usually varying between 5%-15%. This will determine the profit on purchased shares — the higher the discount, the higher the profit.
Maximum contribution allowed
In addition to the discount percentage, there are sometimes caps placed on the total dollar amount or income percentage that a customer is allowed to contribute. Again, the higher the amount contributed, the higher the profit.
For more information on how to apply or how ESPP service works, see our related support articles linked below: