Lendified Small Business Loans review

Lendified is a private lender with a specialization in small business financing. According to its website, the founders have ample experience in banking, and Lendified was created to support small businesses that struggle to obtain financing from big banks.

• Consider Lendified if you’re an established small business struggling to obtain financing from traditional banks.

• Choose another lender if you’re a startup or don’t meet the $100,000 annual revenue requirement.

To learn more about Lendified, the products it offers and how to apply, continue reading below.

Expert review

Lendified offers term loans with interest rates between 8% and 18%. You can borrow between $5,000 and $150,000 for a variety of purposes, including cash flow, inventory purchases and much more. All applications are completed online and analyzed by Lendified‘s algorithm. You can get a decision on your application within 48 hours. If approved, you will also receive the funds within 48 hours.

Do I qualify?

To apply for a Lendified loan, you need to meet the following eligibility criteria:

• Own a business in Canada that has been in operation for at least 6 months.
• Be the age of majority in your province or territory (18 or 19 years of age).
• Generate at least $100,000 in annual revenue.
• Have a good to excellent credit score (around 610 or above).

What makes Lendified business loans unique?

Lendified is operated by former bank employees. For this reason, the founders understand the challenges small businesses face when seeking financing. While the organization doesn’t work with startups, it can help established small businesses expand and improve their operations.

This lender is also unique because it operates entirely online. You can complete your application from anywhere in Canada and, if approved, receive funds within 48 hours. According to Lendified‘s website, the company has received funding requests totaling $500 million to date.

Compare other business loans

What types of loans does Lendified provide?

Lendified offers fast and affordable business term loans with no collateral requirements. With these loans, you can borrow between $5,000 and $150,000. Terms range from 3 - 24 months to years. Once you’re approved, you will receive access to your funds within 48 hours. Interest rates range from 8% to 18%, which is standard with private lenders. The total amount of interest you pay depends on the length of your term and your current credit score.

The downside of Lendified is it doesn’t offer a variety of loan types, such as cash advances or lines of credit. You are limited to standard term loans. However, Lendified offers term loans for a number of purposes including cash flow, refinancing, inventory purchases, supplier payments, equipment, relocation, expansion, hiring, training and advertising.

Rates with private lenders like Lendified are generally higher than what a traditional bank would offer. That said, it’s much easier to qualify for funding with Lendified. As soon as you’re approved and the paperwork is signed, you’ll get your money in as little as 48 hours.

Lendified highlights the following industries on its website:

• Retail
• Auto
• Ecommerce
• Health and beauty
• Restaurants
• Construction

What are the benefits of a Lendified business loan?

• Instant funding. You’ll be able to access your money in as little as 48 hours if you’re approved.
• High loan amounts. You can apply for as much as $150,000, and you may be able to request more on a case-by-case basis.
• Decent interest rates. You’ll pay as little as 8% in interest, although you may pay more if your credit score is on the lower end or you have a shorter term.
• No collateral required. You won’t need to secure your loan against an asset like your home or vehicle.
• Longer terms. You’ll be able to qualify for a term of up to years, which is a longer term than many other private lenders offer for small business loans.
• Free quote. You’ll get an automatic free quote when you apply so you can see how much your interest rates will be on the amount you qualify for.

What to watch out for

• Fewer loan types. There’s no option to take out a merchant cash advance or a line of credit instead of a business loan.
• Administration fees. You’ll be charged a one-time origination fee of 3% to cover the costs of processing and delivering your loan.
• Strict eligibility criteria. Your business has to make at least $100,000 per year and you’ll need a minimum credit score of 610.
• Startups can’t apply. You won’t be eligible for funds if your business is less than 6 months old.
• No early repayment. Lendified doesn’t specify what the penalty is, but it doesn’t allow for early repayment.

How do I apply?

If you meet the eligibility criteria, then the hard part is done. You can easily apply for a loan with Lendified by following these simple steps.

1. Complete the online application, which includes providing your name, email address, personal details, proof of ID and relevant documents.
2. Review and submit your application.
3. Get an automatic quote to show how much you will have to pay.
4. Get verified and approved in as little as 48 hours if you’re eligible for a loan.

Required documents and information

• Government-issued ID. You’ll have to confirm your identity with a valid piece of ID, such as a driver’s licence or passport.
• Credit check. Lendified will ask you to approve a credit score and report check.
• Business bank statements. To confirm your income of $100,000 per year, you’ll be required to provide bank statements from the most recent year.
• Other financial documents. Depending on how much you’re asking for, you may be asked to supply other official documents (like your company tax returns or financial statements).
• Business plan. It might be a good idea to submit a business plan to show the viability of your operations.

I got a Lendified business loan. Now what?

Now that you have your funds, it’s time to use the money and begin making payments. Your scheduled payment amount and dates should be outlined in your agreement. They will likely be monthly or bi-weekly payments. To preserve and improve your credit score, be sure to make payments on time and in full.

If you want to make an early repayment on your Lendified business loan, be sure to check your agreement first. As per its website, Lendified seems to charge penalties for early repayment, but it isn’t specific about how much. This information should be outlined in your agreement.

Bottom line

Lendified offers quick and affordable access to cash for established businesses. Apply for a free quote today to find out how much you can qualify for and what you’ll have to pay in interest over the course of your term.

Interested in exploring other options? Compare small business loans here.

Frequently asked questions

• How much does a loan with Lendified cost?

  You’ll usually pay interest rates between 8%–18% of your total loan amount, in addition to a one-time administration fee of 3%.

• What can I use my financing for?

  You can use the money you borrow to cover just about any business expenses you may have. This can include purchasing new inventory or equipment, buying new property, expanding your team, refinancing debt, funding day-to-day expenses and much more.

• Can I get more funding if I already have a loan from Lendified?

  Yes. You can qualify for more funding as soon as a third of your current loan is paid down.

• Is there any way to borrow more than the maximum limit?

  You may be able to borrow more than the maximum amount, depending on your circumstances. Talk to a Lendified customer service member to find out more.

• Can I qualify for funding if I run a startup?

  Unfortunately, no. You can only qualify for funding if you’ve been operational for one year. This is because you’ll be required to show that you’re making at least $100,000 in annual revenue.