Lendtable review: Borrow to contribute the maximum to your 401(k) company match or Employee Stock Purchase Plan

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In a Nutshell

A cash advance from Lendtable can help you make the maximum contribution your employer allows — and will match — for your 401k or employee stock purchase plan. But to use the service, you’ll have to give Lendtable a portion of the vested profits.
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Pros

  • Helps you contribute more to your company’s retirement plan or buy stocks
  • May give you the ability to save more for retirement
  • Frees up your monthly cash flow

Cons

  • Funds must be paid back with a cut of the profits
  • Lack of transparency around profit sharing
  • Only available to people with a 401(k) company match or employee stock purchase plan

What you need to know about a Lendtable cash advance

Lendtable doesn’t offer traditional personal loans. Instead, it functions like a cash advance you can use to contribute the maximum to your employer’s matching 401(k) contributions or employee stock purchase plan, or ESPP.

If you’re considering using Lendtable, here are some important things to consider.

It allows you to contribute more to your retirement plan or buy stocks

Taking advantage of your employer’s 401(k) matching contributions or ESPP program benefits can help you save for retirement. When you take out a cash advance through Lendtable, the company deposits the money directly into your bank account to make up for the extra amount deducted from your paycheck to max out your contributions.

By using Lendtable, you can borrow money to maximize your employer’s benefits without tapping into your own paycheck. Over time, this can help your retirement savings grow significantly. According to Lendtable, a single $1,500 employer match can be worth more than $15,000 if it has an average annual return of 8% over 30 years.

Frees up your monthly cash flow

Using Lendtable allows you to take advantage of your full employer’s retirement benefits without straining your monthly budget.

Funds used must be paid back

Any money you borrow from Lendtable must be repaid. Once your employer’s matching contributions are vested — meaning you have complete ownership of the matching contributions — Lendtable will take a percentage of the profits as payment.

Lack of transparency around profit sharing

While Lendtable doesn’t charge interest on the amount you borrow to get an employer match, it takes up to 20% of your employer’s contribution at the end of your contract. But Lendtable’s site doesn’t make it clear how the fee is determined. This lack of transparency makes it difficult to know what kind of cut Lendtable will take before a contract is created.

You must be employed and eligible for a 401(k) or ESPP

To qualify for a Lendtable cash advance, you must be employed and have access to a 401(k) plan with a company match or an ESPP. If you’re self-employed or your employer doesn’t offer matching contributions, you can’t use Lendtable’s services.

A closer look at a Lendtable

  • You’re responsible for adjusting contribution amounts — Since Lendtable isn’t able to adjust your retirement plan contributions for you, you’ll have to change the percentage yourself if you want to update the amount.
  • Avoid early-withdrawal penalties — If you’re under 59½, taking distributions from a retirement account usually incurs an early-withdrawal penalty. Lendtable says it will talk you through ways to avoid this penalty when it’s time to pay the company back. But keep in mind that if you want to avoid the penalty you will need to pay the fee required through some other method like your checking account or credit card.
  • The amount you can borrow is capped — The maximum amount of money you can borrow from Lendtable is based on what your employer allows you to match. For example, if the maximum matching benefit is 5% of your paycheck, that’s the most you can receive from Lendtable.
  • Your employer may already work with Lendtable — Lendtable works directly with many employers, but even if it doesn’t partner with your company, Lendtable states that employers generally aren’t concerned about where employees get the funds to make their contributions.
  • No mobile app —Lendtable doesn’t yet have an app, but it says there is one in development.
  • No credit checks — Lendtable doesn’t perform any credit checks and using the service won’t affect your credit score.

Who is a Lendtable cash advance good for?

If you’re one of the approximately one-third of retirement plan participants who aren’t contributing enough cash to their retirement plans to maximize your employer match, a Lendtable loan could be worth considering.

But if you’re looking for a personal loan to provide cash to help cover an immediate expense, such as a major purchase or an emergency cost, you’ll have to look elsewhere.

How to apply with Lendtable

You can submit an online application from the Lendtable website. Or, if you prefer to talk to a representative, you can schedule a call.

When you apply, you’ll have to provide some personal and employment information, including your birthdate, employer’s name, employment history, salary and payroll information.

If Lendtable approves your application, the funds will be deposited into your checking account within three business days after you confirm your payroll deduction amount and pay the $5 platform fee.

Not sure if Lendtable is right for you? Consider these alternatives.

  • Dave: If you need some cash to cover your bills until your next payday, the Dave app offers small cash advances up to $200. And there are no interest charges.
  • Upstart: With a prequalification option and reasonable rates, Upstart offers loans for a variety of needs.

About the author: Kat Tretina is a personal finance writer with a master’s degree in communication studies from West Chester University of Pennsylvania. Obsessed with her many side hustles, she focuses on helping people pay down their … Read more.