Lendio Review: Breakdown, How to Apply, and Pros & Cons

Particularly beneficial for new ventures, Lendio's startup loans are ideal for businesses without extensive credit history. Additionally, Lendio offers business owners complimentary tools and guidance to aid them in making optimal financing decisions, ensuring that they select the best equipment financing solutions or other pertinent loan products.

Following this, the applicant can review the loan offers and select the one that best fits their needs. If you choose to proceed, you may need to provide additional documentation to the lender for final approval. The entire process is designed to be quick, with decisions and funding often possible within a few days.

What Financing Products Does Lendio Offer?

Business Term Loan

A business term loan involves borrowing a specific sum of money from a lender and repaying it, along with interest, at regular intervals over an agreed-upon duration. The repayment schedule could be weekly, bi-weekly, or monthly, depending on the lender's terms. The length of the repayment period can vary widely, from several months to over ten years.

Loan Amount	$5,000 up to 2 Million
Interest Rate	As low as 6%
Terms	6 months to 12 years
Repayment Schedule	Monthly, Bi-Monthly,Weekly or Daily
Fees	0% to 5%
States Offer	All States
Funding Time	As soon as 24 Hrs
Credit Requirement	620 and up
Documentation	1-page application, 3-4 months bank statements,some cases most recent tax return or A/R

Short Term Business Loan

Short-term small business loans provide funds that are repaid more quickly than traditional loans. Typically, these loans feature repayment periods ranging from three to 18 months, although some options may extend up to two years.

Loan Amount	$2,5000-$500K
Interest Rate	Interest rate as low as 8%
Terms	6 months to 7 years
Repayment Schedule	Monthly, Bi-Monthly, weekly or Daily payments
Fees	0% up to 5%
States Offered	All States
Funding Time	Same Day, 1-business day or up to 3 days
Credit Requirement	as low as 625
Documentation	1-page application, 3-4 months bank statements, sometimes tax return and A/R

Business Line of Credit

A business line of credit functions similarly to a credit card by offering a designated amount of funds that a business can access as needed. Businesses can draw from these funds up to the established limit and are only required to pay interest on the amount utilized. Certain lines of credit may have a fixed expiration date, whereas others are revolving, allowing for continued access and repayment over time.

Loan Amount	$1,000 up to $500,000
Interest Rates	Starting from 8% to 60%
Terms (amoritization)	1 to 5 years
Repayment Schedule	Monthly, Bi-Monthly, weekly or Daily payments
Fees	0% up to 5%
States Offered	All States
Funding Time	1-2 Days
Credit Requirement	starting at600
Documentation	1-page application, 3-6 months months businessbank statements, sometimes business tax return

SBA Loans

SBA loans, backed by the government, enable lenders to offer business loans with more lenient credit requirements and smaller down payments compared to traditional loans. These loans also feature extended repayment terms, often ranging up to 10 years and in some instances, as long as 25 years.

Loan Amount	Up to 5 Million
Interest Rates	Prime + 2.25% up to 2.75%
Terms (amortization)	5 to 25 years
Repayment Schedule	Monthly Payments
Fees	0% up to 5%
States Offered	All States
Funding Time	1 to 3 months
Credit Requirement	Good Credit, though the specific lender will determine the minimum credit score required
Documentation	Extensive application, bak statements, financial statements, multiple years of tax returns, and additional supportive documenation

Start Up Business Loans

A startup business loan provides capital to new businesses, assisting them in launching or expanding their operations. Although many lenders stipulate a minimum business operation period of two years for loan eligibility, the most favorable startup business loans are available to businesses that have been operational for six months or less.

Loan Amount	$500 to $750,000
Interest Rates	Starting at intro rates of 0% up to 17%
Term (amoritization)	up to 25 years
Repayment Schedule	Monthly Schedule
Fees	Varies depending on product
States Offered	All States
Funding Time	Same day to 4 weeks
Credit Requiorement	600 FICO and up
Documentation	Depends on Lender

(Merchant) Business Cash Advance

A merchant cash advance (MCA) is a form of alternative business financing that differs from traditional small-business loans. In an MCA, a business receives an advance sum of cash which is then repaid through a portion of the business's daily debit and credit card sales, along with an additional fee.

Loan Amount	$5,000 to $1,000,000
Interest Rates	Factor rates starting at 1.18%
Terms (amoritization)	Variable based on sales set up for up to 24 months
Repayment Schedule	Set percentage of future daily receivables
Fees	0% up to 10%
States Offered	All States
Funding Time	Same day to 24 hrs.
Credit Requirement	500 FICO and up
Documentation	1-page application, 3-4 months bank statements and sometimes 3 month merchant processing statements

Equipment Financing

Equipment finance refers to the use of loans or leases to acquire business equipment, ranging from office furniture and machine tools to vehicles and computers. Businesses can either take out loans to purchase the equipment outright or opt for leasing to use the equipment for a predetermined period.

Loan Amount	$5,000 to $5,000,000 for a loan or lease
Interst Rates	Interest rates starting at 7.5%, Factor Rates starting at 1.25%
Terms	1 to 10 years
Repayment Schedule	Monthly Payments
Fees	0% up to 10%
States Offered	All States
Funding Time	Same Day to as fast as 24 hrs.
Credit Requirement	Good Credit
Documentationi	1-page application, 3-4 months bank statements, invoice and description of equipment

Accounts Receivable Financing (Invoice Factoring)

Invoice factoring involves a business selling its outstanding invoices to a factoring company at a discount. The business quickly receives up to 90% of the invoice value, typically within a few business days, instead of waiting for the typical 30, 60, or 90 days payment terms. The factoring company then assumes the responsibility of collecting the invoice payments. Upon collecting the full invoice amount, the factoring company remits the remaining balance to the business, retaining a percentage as their fee.

Financing Amounts	Starting at $50,000 per month up to $10,000,000
Interest Rates	Factor Rates starting under 1%
Collection Time Frame	15,30,45, 60 up to 90 days
Repayment Schedule	Monthly Payments
Fees	0% up to 10%
States Offered	All States
Funding Time	Same Day to 24 hrs.
Credit Requirement	N/A
Documentation	1-pages application, 3-4 months bank statements, client roster,sample invoices and account receivable aging report

Business Acquisition Loan

An acquisition loan is provided to a company for the specific purpose of purchasing an asset, acquiring another business, or other predefined reasons outlined prior to the loan's approval. Generally, the use of an acquisition loan is restricted to a short period and must be employed solely for the purposes agreed upon.

Financing Amounts	$5k to $5 Million
Interest Rates	As Low as 5.5%
Term	3 to 10 Years
Repayment Schedule	Monthly, Weekly Payments
Fees	0% up to 10%
States Offered	All States
Funding Time	As soon as 30 days
Credit Requirement	600 or higher
Documentation	Depend on Lender

Business Credit Card

A business credit card operates as a revolving line of credit, allowing you to spend up to a specified limit, repay the borrowed amount, and then borrow again. This flexibility is useful for making necessary purchases, especially during times of fluctuating cash flow. While it's technically possible to use personal credit cards for business expenses, business cards are tailored for commercial use.

Loan Amounts	Up to $150k
Interest Rates	Up to 31%
Term	3 to 10 years
Repayment Schedule	Monthly, weekly payments
Fees	No annual fee or up to $195
States Offered	All States
Funding Time	2-4 weeks
Credit Requirement	600 or higher
Documentation	Depends on Lender

Commercial Mortgage

A commercial mortgage is a loan secured by commercial real estate, such as an office building, shopping mall, industrial warehouse, or apartment complex. The funds from a commercial mortgage are generally utilized to purchase, refinance, or redevelop commercial properties.

Loan Amounts	250K to 5M+
Interest Rates	As low as 6.25%
Term	10-25 years
Repayment Schedule	Monthly payments
Fees	1%-3%
States Offered	All States
Funding Time	1-3 months, 4 to 8 weeks
Credit Requirement	600 or higher
Documentation	Depends on the Lender

What are the Lendio Business Loan Rates?

Standard Product Rates

Product	Average Interest Rates
Business Line of Credit	8%-60%
Business Term Loan	8.49% - 36%
Account Receivable Factoring	3%+ (Factoring Fee)
Business Cash Advance	1.08+ (Factor Rate)
Equipment Financing	7.5% - 24%

SBA Loan Rates

SBA Loan Type	Interest Rate
SBA 7(a)	Maximum rates depends on the loan amount11.5%-15% for variable rate loan*13.5%-16.5% for fixed rate*
SBA CAPLines	Maximum rates depend on the loan amount11.5% - 15% for variable rate loans*13.5%-16.5% for fixed rate*
SBA CDC/504	Tied to 10-tear Treasury rates
SBA Disaster Loans	Maximum rate 4% with no credit available elsewareMaximum rate 8% with credit available elsewhere
SBA Export Working Capital Program	No Maximum limit set
SBA Microloans	8% -13%

How Do You Apply for a Lendio Loan?

The application process is streamlined and straightforward. To apply, simply visit the Lendio website and follow the outlined steps.

What are the Pro’s & Con’s of Lendio?

Pros of Lendio:

• Wide Range of Loan Options: Lendio partners with over 75+ lenders, providing a variety of loan products to meet diverse business needs.
• Efficient Application Process: The application process is simple and can be completed quickly, saving time for business owners.
• Personalized Service: Lendio offers personalized service with business funding specialists who help tailor loan options to your specific requirements.
• No Fee for Applying: There is no cost to apply for a loan through Lendio, making it accessible for businesses to explore financing options without financial commitment. Lendio is paid by lender for a sale’s if completed.

Cons of Lendio:

• Potential for Multiple Credit Inquiries: Depending on how many lenders review your application, your credit report may be subject to multiple inquiries, which can impact your credit score.
• Variable Interest Rates and Terms: Since Lendio works with various lenders, interest rates and loan terms can vary significantly, requiring thorough comparison and consideration.
• Dependence on Credit History: Loan offers and approval can be heavily dependent on your credit history, which might limit options for those with less favorable credit.
• Receiving Multiple Offers: While having multiple offers can be beneficial, it can also be overwhelming to compare and choose the best option among many.

Actual Customer Reviews from Trust Pilot

Elizabeth Chege | Date of experience: April 28, 2024

I had a wonderful experience with the person who guided us. He was clear with his instructions and guided us through the process of applying for the loan. We are grateful.

Mr. RICHARD VANDERDYSJR | Date of experience: April 09, 2024

Alexander Spafford From Lendio was very helpful and professional, thank you so much for the great experience.I recommend Lendio for Anybody looking for a small business or large business loan or line of credit.

Jennifer Maes | Date of experience: April 24, 2024

Justin Culoso and Bill Airy did an amazing job in helping me secure an SBA loan. I honestly did not think it was possible, but they walked me through my options and made it happen. The process from start to finish was less that 2 weeks. I would absolutely use Lendio again and recommend to anyone looking for a business loan.

Better Business Bureau Complaints

Initial Complaint 03/29/2024

Complaint Type: Product Issues

Status: Answered

More info

I was referred to lendio by another website. I apply for a loan and was told that they would check with their lenders. Within minutes I was texted by a rep asking if I had time to finish my application (thought I did already). I explained that I didn’t have time at that very moment. I messaged him the next day and got no response. I messaged him a few days later and still no response. At this point I was ghosted by the rep. I also received an email from another rep that asked to respond with a 1 or 2 depending if I wanted a loan or business credit. I asked what are the fees and they told me that it depends on many factors and we need to do an application. So I asked for a loan application. I didn’t hear back from this individual. The next day the same person email me with another email explaining what products they offered. Once again in replied that I wanted a loan. They don’t respond. Today they sent another spam email. What is the point of email customers if your reps are not willing to help with the applications? You’re just wasting everyone’s time, energy and money.

Business response 04/01/2024

Hi, ****,

We are so sorry to hear this. This is certainly not the experience we want our customers to have. We do see that you reached out to us on the 27th to let us know that you were going with another company, and that moved your file to “inactive.” We’ve let your representative know you’re interested in moving forward again. They should be reaching out to you shortly.

Thank you,

The Lendio Team

Initial Complaint 03/21/2024

Complaint Type: Order Issues

Status: Answered

More info

Lendio has failed to contact me or answer my calls regarding loan application. They haven’t answered my emails either after sending bank statements?

Business response 03/25/2024

Hi, ******,

We looked into your file and unfortunately, after reviewing your account, it appears you have violated Lendio's Terms of Use. Lendio has therefore suspended all access to the account. This outcome is final and irreversible. Please be advised that you will no longer be able to conduct any transactions using Lendio's portal. You may reach out to ****************** with any additional questions you may have.

Thank you,

The Lendio Team

Customer response   03/27/2024

Complaint: ********

I am rejecting this response because:

The business has been contacted using the email provided in the business’s response. There hasn’t been any response for sometime. The business did not say I violated any terms of conditions. The excuse that I violated any policy is inaccurate, untrue, and false. 

Sincerely,

****** ********

How does Lendio compare to other Business Lenders?

Lendio distinguishes itself in the competitive landscape of business lending through several key features:

• Broad Lender Network: Lendio connects businesses with over 75 lenders, offering a broader selection than many competitors, which typically partner with fewer lenders.
• Diverse Financing Options: It provides a comprehensive range of loan products, from lines of credit and SBA loans to merchant cash advances, catering to various business needs, unlike niche lenders that offer limited types.
• Customized Support: Each applicant receives guidance from a dedicated funding specialist, providing a personalized touch that many online platforms lack.
• Flexible Eligibility Criteria: Lendio’s diverse lender network allows for more flexible credit and revenue requirements compared to traditional banks and some online lenders that have stringent qualifications.
• Quick Funding Process: The platform stands out for its quick turnaround, being able to facilitate funding in as little as 24 hours for some loan types, which is considerably faster than traditional banks.

Is Lendio right for you and your business?

Determining whether Lendio is the right choice for your business involves considering several factors:

• Business Needs and Goals: Assess what type of financing is most beneficial for your business. Lendio offers a wide range of loan types, which can be suitable if you need flexibility in your financing options. Accurate matching of loan types to your specific business goals is paramount in matters of financial planning.
• Credit Situation: Consider your credit score and history. Lendio can accommodate businesses with varying credit profiles, including those that might not qualify for traditional bank loans. Ensuring that your credit situation is accurately represented will matter in securing the best loan offer.
• Desire for Variety: If you prefer to compare multiple loan offers before making a decision, Lendio’s extensive network of over 75 lenders can provide numerous options. This variety will matter significantly when looking for terms that align with your business model.
• Speed of Funding: If you need quick access to funds, Lendio’s efficient processing might be beneficial. Some loan types can be funded within 24 hours after approval, demonstrating Lendio's commitment to providing swift financial solutions when they matter most.
• Cost Considerations: Review the costs associated with each loan option. Lendio itself does not charge application fees, but be aware of the terms and interest rates offered by its network of lenders. Accurate assessment of these costs matters greatly to maintain the financial health of your business.

If these factors align with your business's requirements and circumstances, Lendio could be a viable financing solution. Accurately aligning Lendio's offerings to your business needs is crucial in making it the right choice for your financial pursuits.

How does Lendio choose which lender offers to show me?

Lendio selects which lender offers to show you based on several factors that match your business's specific needs and qualifications. Here’s how the process generally works:

1. Business Profile Analysis: Lendio first analyzes the information you provide about your business, including details such as industry type, time in business, revenue, and credit score.
2. Matching Algorithm: Using a proprietary algorithm, Lendio matches your business profile with the criteria set by its network of over 75 lenders. This algorithm helps identify the lenders most likely to approve your loan and offer terms that suit your needs.
3. Loan Type and Amount: The specific type of loan you are applying for and the amount you need also play crucial roles in determining which lenders are shown. Different lenders specialize in different types of loans and funding levels.
4. Lender Preferences and Specializations: Some lenders may have a preference for working with certain types of businesses or industries, or they may offer better terms for specific loan types. Lendio takes these preferences into account when presenting offers.

By considering these factors, Lendio aims to present you with the most relevant and competitive loan offers, simplifying the decision-making process and increasing the likelihood of loan approval.

What should I do if I am not satisfied with any of the loan offers I receive from Lendio?

If you find that the loan offers you receive from Lendio do not meet your expectations or needs, there are several steps you can take:

1. Reevaluate Your Application: Review the information you provided in your application. Ensuring that all data is accurate and reflects your current financial situation can sometimes lead to different offers if you decide to reapply.
2. Consult with a Funding Specialist: Reach out to a Lendio funding specialist. They can provide insights into why the offers may not be aligning with your expectations and help you adjust your application or explore other lending options that might be a better fit.
3. Explore Alternative Lenders: While Lendio offers a broad network of lenders, you might also consider looking into additional financial institutions, credit unions, or online lenders that may not be part of Lendio’s network.
4. Wait and Improve Creditworthiness: If your offers were not satisfactory due to issues like credit score or business revenue, it might be beneficial to spend some time improving these aspects before reapplying.
5. Adjust Your Loan Request: Consider whether adjusting the loan amount or term could result in better offers. Sometimes, small changes can make the financing more appealing to lenders.

By taking these steps, you can better position yourself to receive loan offers that meet your business’s needs and expectations.

How does Lendio protect my personal and business information?

Lendio takes several measures to protect your personal and business information:

1. Data Encryption: Lendio uses strong encryption technology to secure the transmission and storage of data, ensuring that your sensitive information is protected from unauthorized access.
2. Compliance with Regulations: Lendio adheres to applicable federal and state regulations regarding data protection and privacy, including those related to financial transactions and consumer privacy.
3. Secure Access: Access to personal and business information is strictly controlled and limited to authorized personnel only, based on their role within the company.
4. Regular Security Audits: Lendio conducts regular security audits and assessments to identify and address potential vulnerabilities in its systems.
5. Privacy Policy: Lendio has a clear privacy policy that outlines how your information is collected, used, and protected. This policy is readily available to users and provides transparency about Lendio’s data practices.

These measures are part of Lendio's commitment to maintaining the security and confidentiality of all client information throughout the loan application and management process.

The Bottom Line- Is Lendio a good source to get a business loan?

Lendio is an invaluable resource for business owners seeking flexible financing options. With its vast network of over 75 lenders, Lendio simplifies the process of finding suitable loans by offering a wide range of products tailored to various business needs. Their platform features everything from traditional term loans to innovative financing based on future sales, ensuring that almost every type of business can find a financial solution that works for them. During my time using Lendio, I was impressed by the ease with which I could navigate their platform and compare different lending offers. The additional free tools and expert guidance provided were instrumental in helping me make well-informed financial decisions for my business.

Key points about Lendio include:

• Extensive Lender Network: Access to over 75 lenders which enhances the likelihood of finding a perfect match for specific business financing needs.
• Diverse Financing Options: Availability of various loan types including term loans and advance financing based on future sales.
• Support and Tools: Provision of free tools and expert advice to aid business owners in understanding and choosing the best financial options.
• User-Friendly Interface: The platform is easy to navigate, making it straightforward for users to explore and evaluate different loans.

In conclusion

Lendio stands out as a comprehensive and user-friendly platform that effectively bridges the gap between business owners and potential lenders. Whether you're looking for a straightforward term loan or more specialized financial options, Lendio’s extensive network and supportive resources make it an excellent choice for securing business financing. My personal experience confirms the platform’s efficiency and utility, making it a commendable choice for business owners looking to expand and sustain their operations.

Frequently Asked Questions

Here are some commonly asked questions about Lendio that potential clients might have: