Lending Tree Review - Business Loans
Application & Approval Process
Customer Support & Benefits
LendingTree is an online marketplace where you can compare different loans for your business. You are required to fill in your details on the website and in return, you’ll be presented with a range of loans that you pre-qualify for, saving you the time and effort of looking through individual lenders’ sites to view their rates.
The company was founded by Doug Lebda in 1996 and he’s been the CEO ever since. Initially, the company launched to assist people with their mortgages, but soon after, LendingTree began to offer comparisons of personal loans, credit cards, student loans, and business loans.
LendingTree is great for business owners who are pushed for time from shopping around with different banks. The site works with a range of borrowers, all of which have diverse credit score requirements, so those with a low credit score may still be able to find a lender.
- Matches customers with up to 4 lenders
- Multiple types of financing
- Range of lenders allow low credit scores
- Easy online application process
- Additional charges apply
- Not a direct lender
- Fulfilled over 55 million customer loan applications and funded more than $250 billion in loans.
- Some lenders allow low credit scores from 600 to apply for a business loan.
- Network of reliable lending partners and a range of financing alternatives.
- A single online application form that accesses multiple loan offers.
- Can review up to 4 lending matches per result.
Application & Approval Process
It’s important to note that when you use LendingTree, you’re not borrowing money off the company. Instead, you’re looking at a range of loan companies can be offered to you and your business. LendingTree’s panel of lenders work with most types of businesses, namely:
- Sole traders
- Limited liability companies
- C corporations
- S corporations
When you first start your search for a business loan, you will be asked for a range of information, such as:
- Type of Business
- Annual revenue
- Years in Operation
- Industry in which you operate in
- Requested loan amount
- Reason for the loan
- Credit score
- Name of the business
- Your full name
- Zip code
- Phone number
Providing this information will allow LendingTree to find loans that match your purpose and your business.
After you’ve assessed all of the choices provided through LendingTree, you’ll need to choose the company to proceed further with your loan application. You should understand the lender’s rates, fees, and terms when moving forward with the application.
When you start the process to approve your loan, the company will want to see some of the business’s documentation. The requirements will vary from lender to lender, but LendingTree say the most important criteria are your annual revenue, profitability, time in business, and credit score. This data will help the lender decide whether they will be able to lend to you. Some typical documents that could be requested include:
- Personal and business credit scores
- Business plan
- Balance sheet
- Cash flow history and projections
- Accounts receivable and payable reports
All of this information will allow the loan company to assess what interest rate and loan term they can offer to your business.
Every company process will be different. For example, some paperwork may need to be signed and sent through the post before the loan funds can be released. Then you will start to make your payments each month in line with your agreement.
Generally, internet loan companies will process your loan application quicker since they don’t require as much data. With a faster processing time, you should receive the money sooner than with a bank. Each lender will vary in timeframes for approval so check it meets your expectation for when you would need to utilize the business loan.
Rates & Fees
LendingTree does not have its interest rates advertised on the website. This is because there are many different loan companies and each one has different criteria for how they decide your interest rate. Some factors that are considered when setting your interest rate such as the age of your business, revenue history, and credit score. You need to complete the application before getting a definite rate and payment amount.
There is a number of fees that can be charged on your business loan with LendingTree i.e. application fees, origination fees, early payment fees, service fees, and late fees. Therefore, you would need to confirm your potential charges with your lender before taking the loan.
Different types of business loans cover a range of payment terms. Short-term loans can have high monthly payments but will not have a high total cost to your business, whereas a long-term loan will not put too much pressure on your cash flow but will cost your business more in the long run.
Being able to make extra payments or pay down the loan early are all things that are controlled by your loan company. If you’re expecting a big cash injection into your business so you can clear your loan early, check what costs that might incur with your lender.
You can also explore if your loan company offers payment holidays in case your business comes into some financial difficulties. Not every lender will offer this option, but you should ask in case the situation arises in the future.
Both short-term and long-term loans are offered by companies on LendingTree. You can also apply for a Small Business Administration (SBA) loan if your business meets the right criteria. These loans can have favorable interest rates and better terms than normal loans, but they can take more time to be processed.
Other types of business loan available on LendingTree are:
Business line of credit
To support your cash flow, you can take a line of credit. The loan company sets a limit that you can borrow and you can make withdrawals when you need extra funding for your business.
Working capital loan
When you need to fund the daily expenses in your business, you can take a working capital loan. Businesses in seasonal or cyclical industries find this type of loan useful to cover fluctuations.
Buying equipment for a business can be a big investment. Equipment financing can help you buy a piece of machinery or software that will help you increase productivity and profits.
Invoices can take time to get settled, so receivable financing lets you borrow against the payments your clients will make in the future. This is usually a short-term loan.
Customer Support & Benefits
LendingTree only offers phone support, which is available 6 days a week from 8 AM to 9 PM (EST) Monday to Thursday, 8 AM to 8 PM (EST) on Fridays, and 10 AM to 7 PM (EST) every Saturday. The website also features a blog with rich information regarding lending and the current market trends. But these details are different types of lending products and not focused on business loans.
Address: LendingTree, LLC 11115 Rushmore Drive, Charlotte, NC 28277
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