Lendio Review - Business Loan

Application & Approval Process
9.0/10
Rates & Fees
9.0/10
Payment Terms
9.0/10
Loan Type Options
9.0/10
Customer Support & Benefits
9.0/10

About Lendio

Founded in 2011, Lendio is an online small business loan marketplace based out of Utah, USA. They operate as a loan aggregator, connecting small businesses with their network of high-quality lenders. Business owners are offered a wide range of loan products based on their needs and current financial circumstances. The application process can take as little as 10 minutes, and each applicant will receive a Funding Manager to help them find the best available options. The application process is free, and funds can be available in the business account in as little as 24 hours.

i

Excellent

9.0/10

Pros

  • Free online application process
  • No fees or obligation
  • Get capital in 24 hours
  • Several business loans available

Cons

  • Prepayment penalties vary
  • Some loans require additional documentation

Key Highlights

  • No minimum credit score required.
  • Lendio has funded more than $2+ billion across 107,000+ small business loans. 
  • Marketplace platform with a network of 300+ lenders.
  • Partnered with industry leaders including PayPal, Bank of America, Kabbage, OnDeck, American Express, and more.
  • Through Lendio Gives, an employee-driven charitable program, for every dollar that its employees donate, Lendio will match it and provide opportunities for volunteer work. In addition, through every loan facilitated, Lendio Gives donates a percentage of funds to low-income entrepreneurs around the world through Kiva. 

Application & Approval Process

The application process takes less than 15 minutes and requires you to go through a series of simple questions so Lendio can understand your business needs and whether or not you are applicable to receive a loan.

Before you apply, make sure that you meet the minimum criteria, which is as follows:

  • Minimum of 12 months in business
  • No bankruptcies in the previous three years
  • Must own a business bank account
  • Must be a US-based company
  • No minimum credit score but above 560 is advised
  • At least $10,000 revenue annually

If you fulfill these criteria, then you can proceed with the application on Lendio’s website. Simply click “Get Started” to initiate the process so you can receive your obligatory free loan quotations from Lendio’s marketplace. Throughout the questionnaire, you will be asked for a variety of information in order to receive your quotes, such as:

  • 18 years or older
  • Business name & address
  • Business type
  • The business industry
  • Federal/state tax ID
  • Average monthly payroll
  • Desired loan amount
  • Number of employees

After you have entered this information, you are required to submit some documents to support your application. This includes identification for all owners and payroll reports. The more complete and comprehensive these documents are, the faster the loan approval will be.

Once you have uploaded your documents, you will be navigated to a page where you must e-sign in order to receive your quotes. At this stage, Lendio will run a soft credit pull, which will not impact your credit score.

Lendio provides financing options from its nationwide network of 300+ high-quality lenders, which means that there are varying rates and terms between the different providers. Fortunately, a Lendio Funding Manager will contact you to run through your list of options and help you find the best loan for your business, based on the information you have shared. 

Once you have decided upon a lender, you must complete a full application on their website, which will require further questions regarding the business and a hard credit check. Upon successful approval, the loan can be available in as little as 24 hours.

It’s worth noting that Lendio and its network of lenders consider certain industries to be restricted and may not offer their services any of the following businesses:

  • Gambling
  • Hunting
  • Fishing
  • Real estate
  • Mining
  • Legal services

Rates & Fees

Lendio does not charge any fees as part of their loan aggregation service. They make a profit by selling loan leads to its partnered providers and earns a commission through successful sales.

As Lendio operates as an online marketplace where business owners meet loan providers, rates and fees will vary from one provider to the next. The rates will also differ depending on what type of financing you wish to take out, your credit score, and the overall health of your business upon the time of the application. As an example, SBA loans have a minimum APR of 6.5% and a maximum of 9%, whereas a term loan ranges from 7% to 30%.

All conditions and fees should be discussed at the point of sale with the loan provider.

Payment Terms

The payment terms vary depending on the type of loan that the applicant is requesting and the purpose of the financing. In general, the loan terms range anywhere between 1 month to 25 years.

The repayment schedules are typically done on a monthly basis; however, this should be discussed with the loan provider and may differ. The same can be said for early loan payment fees and the option to freeze or pause loan repayments.

Loan Options

Lendio has a wide variety of financing options available to applicants. In total, there are 12 different funding options available; these are:

Business Line of Credit

The low-cost way to give your business a financial safety net.

SBA Loan

An SBA loan is a small business loan that is partially guaranteed by the government (the Small Business Administration). These typically come with excellent rates and great payment terms.

Short-Term Loan

A short-term loan can get you financing in as little as 24 hours. You can use it to cover unexpected costs, survive a slump, finance a short-term project, or even capitalize on a new business opportunity.

Business Term Loan

A flexible form of financing that can be used for almost any business need.

Business Credit Card

Covers daily expenses and increase working capital while building your credit.

Equipment Financing

Finances tools, software, appliances, and even company cars.

Commercial Mortgage

For buying, building, expanding, or remodeling your business space.

Accounts Receivable Financing

You can gain quick access to cash by selling your purchase orders or receivables so you can get back to business as usual.

Startup Loan

Give your new business a financial boost without losing equity.

Business Acquisition Loan

A small business loan that is designed for financing the purchase of an existing franchise or business.

If you require more than one type of financing, you can apply with multiple lenders and receive quotations for each type of funding you want.

Customer Support & Benefits

Lendio offers support on numerous channels, such as email, phone, post, social media, or the online contact form. Opening times for all of these contact methods are from 9 AM to 9 PM (ET), Monday to Friday.

Customers can also use the extensive FAQ section on Lendio’s website which answers questions such as:

  • What is an online lending marketplace?
  • How much do Lendio services cost?
  • What is an SBA loan?
  • Will I qualify for a business loan?

In addition to their customer support, Lendio runs a dedicated small business blog with lots of information and how-to guides on topics such as financing, business strategies, and using their service. There is also a helpful loan calculator on the site which provides customers with an estimate of what a typical loan may cost them before filling in the application.

Contact Details

Address: 4100 Chapel Ridge Road, Suite 500, Lehi, UT 84043

Phone: (855) 853-6346

Email: [email protected] 

Online Contact Form

Social Media: Social media channels: Facebook, Twitter, Google+ and Linkedin

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