Benny and Lendtable are two different companies that offer loans or lines of credit, or advances that allow employees to take advantage of their Employee Stock Purchase Plans (ESPPs) at their company. An ESPP requires you to contribute via payroll deduction, and if you have the maximum amount deducted from each paycheck, it may impact your day-to-day cash flow. Programs like the one offered by Benny or Lendtable allow you to fully maximize your ESPP while still maintaining your normal take-home pay amount.
Introduction to Benny and Lendtable
What is Benny?
Benny is a financial wellness startup, founded in 2021 in Madison, Wisconsin. Benny helps fund your ESPP contributions, enabling you to max out your ESPP without reducing your take-home pay. Even after paying a portion of your gains to Benny in exchange for the short-term loan, you are still financially ahead because of the gains you get from maximizing your ESPP purchases.
What is Lendtable?
Lendtable is a fintech startup company, which was founded in San Francisco in 2020. Lendtable offers an advance to employees to allow them to max out their 401(k) or ESPP, in exchange for a fee.
Comparing Benny and Lendtable
If you’re comparing Benny vs. Lendtable, here’s a look at how the two companies stack up in a number of different areas:
Overview of Features
Lendtable and Benny currently offer similar features, in terms of their ESPP programs. In both cases, the company will lend you money to let you max out your ESPP. Purchasing company stock at a discount yields you an instant profit. Benny or Lendtable are paid once you receive (and likely sell) the discounted stock.
Benny and Lendtable have similar pricing models, but there are a few key differences that you’ll want to be aware of. Both Benny and Lendtable give you money each paycheck to help cover the amount of your ESPP payroll deduction, with the loan being repaid when your shares are granted. Benny states that their fee is about 20% of the ESPP gains, while Lendtable charges a flat 35% fee. Lendtable also charges a $10 monthly fee.
User Experience and Ease of Use
Both Lendtable and Benny have a robust and modern website that offers a pleasant user experience. In both cases, you can learn information about ESPPs but Benny takes it a step farther and provides the details for specific companies including the amount of discount, how often you can join the ESPP and the maximum amount you can contribute each year.
The Range of Services Offered
Both Benny and Lendtable offer lines of credit that allow employees to max out their ESPPs without impacting the amount of money they take home each paycheck. Both companies charge fees for providing this service, though the fees with Benny are typically lower. Lendtable does also offer a similar service to max out your employer’s 401(k) match.
The Benefits of Using Benny
One of the biggest benefits of Benny vs. Lendtable is the fee structure. Lendtable charges two different kinds of fees — a flat 35% fee on the amount earned from the company stock discount in addition to a $10 monthly fee. Benny does not charge a monthly fee and their fee is only around 20% of your ESPP gains. The difference in fees can add up to a big amount, depending on the amount that you earn.
There are two additional benefits of using Benny that Lendtable and other fintech companies may not offer. Benny offers tailored ESPP content that is specific to individual employees and the companies they work for. With this approach, Benny is able to help users optimize their ESPP. In some cases (especially for higher-income earners), maximizing your ESPP can be quite nuanced — it’s not always just a matter of providing a short-term loan to purchase discounted company stock but also helping you contribute the right amount.
The Benefits of Using Lendtable
One benefit of using Lendtable is if you are looking for a line of credit to help you take advantage of your employer’s 401(k) match. Benny currently does not offer this benefit, so if you’re looking for something to help with your 401(k) match, you’ll need to use Lendtable for that rather than Benny. Lendtable also has an iOS (but not Android) mobile app if you prefer using an app instead of a website.
Comparing the User Experience
While both Benny and Lendtable strive to provide user-friendly platforms, Benny may be more appealing for those new to financial apps due to its simple, straightforward interface and deep domain expertise in ESPPs.
Benny vs Lendtable: Who Should Use Which Platform?
If your company offers an ESPP but you’re having trouble contributing the maximum allowed amount, a service like Benny or Lendtable might help. In many cases, using Benny will put you further ahead, financially speaking. That’s because not only does Benny not charge a monthly fee like Lendtable, their overall fees are significantly lower. That lets you keep more of your hard-earned cash in your own pocket. If you’re looking for a service that lets you max out your 401(k) match, then Lendtable is a better option since Benny does not currently offer that service.
A comparison on ESPPs
|*No Loss Guarantee
|**30-day Free Cancellation
|~20% of the gains
|35% of the gains + $10/month
|Available via Phone, Chat, Email, and Meeting upon request
|Email (some automated services available via chat)
|< 5 min plus a 24 hour review period
|< 5 min plus a 24 hour review period
*No Loss Guarantee: No Loss Guarantee is an optional addon service for select companies where Benny will cover any amount of loss you have on your ESPP shares. For example, if the discounted share price at which Adobe purchases your ESPP shares is $30, and if you sell them for less than $30, Benny will pay you the difference. It is that simple. Note, other limitations and conditions apply.
**Canceling within the first 30 days: If you decide to cancel the service within the first 30 days of the participation period, Benny will waive any accrued fees. You will only be responsible for repaying the amount Benny has deposited in your account until that time. There are no additional charges or penalties.
Conclusion: Choosing Between Benny and Lendtable
Choosing between Benny and Lendtable comes down to a few factors that depend on your own specific situation. If you’re looking for a service to provide money each paycheck to help you max out your company’s ESPP, then Benny is probably a better fit. That’s due to their lower fee structure as compared to Lendtable. On the other hand, if you’re looking for a service to help you max out the employer match on your 401(k), consider using Lendtable. In either case, make sure to look through the fee structure, benefits and overall terms and conditions to make an informed decision.