Lendio review September 2018 | An online business loan marketplace

Lendio online business loan marketplace review

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Submit one online simple application to potentially get offers from a network of over 75 legit business lenders.

You know your business needs financing, and it takes work to narrow down and compare your options. Between juggling your lease, payroll and other business responsibilities, where do you find the time?

This is where a loan-connection service like Lendio can help. It works to match your needs with their network of lenders. All you need to do is fill out a quick, hassle-free process to see one or more financing options for your business.

Product NameLendio Business Loan Marketplace
Min Loan Amount$500
Max. Loan Amount$5,000,000
APR6% (Starting at)
Interest Rate TypeVariable
Minimum Loan Term1 year
Maximum Loan Term25 years
Requirements Must operate a business in the US or Canada, have a business bank account and have a personal credit score of 560+.
  • Be 18 or older
  • Operate a business in the US or Canada
  • Be a citizen of the US or Canada or a permanent resident
  • Have a valid business bank account
  • Have a credit score of 560 or higher

First, do I qualify to use Lendio?

Eligibility requirements vary by the lender you’re ultimately connected with. But most require that:

  • You operate a business in the US or Canada.
  • You have a valid business bank account.
  • You have a credit score of 560 or higher.
  • You’re at least 18 years old or your state’s age of majority.
  • You’re a citizen of the US or Canada or a permanent resident.

What makes Lendio unique?

Lendio’s customer service and short, easy application make it a standout among similar marketplaces. Its loan-connection service slashes the time it takes for busy small business owners to find the right loan by taking on most of the heavy lifting in the form of a vetted network of competitive small business lenders. It also promises quick funding, sometimes in as little as 24 hours.

What exactly is Lendio’s online business loan marketplace?

Lendio offers a business loan connection service. Unlike a direct lender, Lendio doesn’t directly finance loan products. Instead, it helps connect you to a range of loans through its vetted network of more than 75 online business lenders.

It’s free to apply. If you ultimately accept a loan offer and receive the funds, Lendio is paid an origination fee based on the loan type and amount.

12 types of financing through Lendio

Through Lendio, you could be connected to a wide range of business financing options that include:

  1. Lines of credit. Like a credit card, lines of credit provide continual access to cash up to a credit limit. Businesses often use them to cover unexpected expenses in an off-season or over an ongoing project.
  2. SBA loans. This is a low-interest loan option backed by the Small Business Administration and designed to help small businesses and select startups. It has low rates because the government agrees to step in if you default, making risky businesses less of a lending liability.
  3. Short-term loans. Designed to help businesses find a quick fix for emergency expenses, these loans can get you money quickly. They might be better as a last resort, however: You could end up with weekly or even daily repayments and high interest rates.
  4. Term loans. Your standard loan option best for one-time large expenses, fixed-term loans have a set repayment period of several years, in most cases.
  5. Merchant cash advances. Get an advance on your company’s future sales in exchange for a percentage of each sale you make until the advance is repaid with interest.
  6. Credit cards. A business credit card is one of your more flexible financing options that allow you to cover any business expense with a swipe. You’ll have a credit limit and can pay it back quickly or over a stretched period of time, but interest accrues the longer you keep a balance.
  7. Equipment financing. Secure your loan with the equipment you’re purchasing in exchange for better rates.
  8. Commercial mortgages. These are similar to equipment loans, but with the real estate offered as collateral instead.
  9. American Express merchant financing. This option allows businesses that accept American Express to get a better rate for merchant financing — but with automatic daily repayments.
  10. Accounts receivable financing. Also called invoice factoring, accounts receivable financing allows you to sell your unpaid invoices for a percentage of their value. You’ll get an advance from a lender on what your client owes you, and then the lender will collect the full invoiced amount directly from the client.
  11. Startup loans. Lendio helps startups navigate financing options suitable for a new, growing business without selling equity.
  12. Business acquisition loans. Buy or refinance a new business or franchise with these loans, which are commonly SBA 7(a) loans.

Compare more business loan providers

Rates last updated September 24th, 2018
Unfortunately, none of the business loan providers currently offer loans for these criteria.
Name Product Product Description Min Loan Amount Max. Loan Amount Requirements
LoanBuilder, A PayPal Service Business Loans
Customizable loans with no origination fee for business owners in a hurry.
$5,000
$500,000
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
Lendio Business Loan Marketplace
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
$500
$5,000,000
Must operate a business in the US or Canada, have a business bank account and have a personal credit score of 560+.
OnDeck Small Business Loans
A leading online business lender offering flexible financing at competitive fixed rates.
$5,000
$500,000
Must have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+.
Lending Express Business Loan Marketplace
$5,000
$500,000
At least 3 months in business and $10,000+ in monthly revenue. Your business might also qualify if it's been in business at least 6 months with $3,000+ in monthly revenue.
Fora Financial Business Loans
No minimum credit score requirement and early repayment discounts for qualifying borrowers.
$5,000
$500,000
Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.
LendingClub Business Loans
With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
$5,000
$300,000
2+ years in business; $50,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal credit
LendingTree Business Loans
Multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
Varies by lender and type of financing
Varies by lender and type of financing
Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.
National Business Capital Business Loans
Get a large business loan to cover your financing needs, no matter what the purpose is. Startups welcome with 680+ credit score.
$10,000
$5,000,000
Your company must have been in business for at least 6 months and have an annual revenue of at least $180,000.
Kabbage Small Business Line of Credit
A simple, convenient online application could securely get the funds you need to grow your business.
$500
$250,000
Must have been in business for at least 1 year. Revenue minimum is $50,000 annually or $4,200 per month over the last 3 months.

Compare up to 4 providers

How can using Lendio’s marketplace benefit my business?

  • Solid customer support. Nearly all of Lendio’s online reviews praise its customer service above all else. After applying, you’ll have a funding manager walk you through the process and explain your loan offers.
  • Saves you time. Time is money, and Lendio can save you a lot of it by connecting you to its vetted network of business lenders.
  • Quick turnaround. Lendio claims it can find you funding in as little as 24 hours after you submit your application.
  • Plentiful loan options. Lendio is a one-stop business loan marketplace that may help you find an option best for your business’s needs. Its network of lenders offers 12 different types of financing.
  • Easy to use. Clear and upfront about what it offers, Lendio’s site is designed to anticipate your questions.

What to watch out for

Lendio turns a profit through fees and partnerships with small business loan providers. You’ll typically find a lot of options, but Lendio’s network is a closed marketplace — which means you might not always get the best deal out there.

Here are five potential drawbacks of borrowing through Lendio:

  • You’re limited to its network. Its pool of providers offers more lenders than most competitors. Still, you may want to weigh your offers against direct lenders to find the best deal you’re eligible for.
  • Pay-per-lead business model. Lenders pay Lendio a fee each time they get a client through its network. It’s possible that you could qualify for a lender to satisfy a sale and not because it’s in your best interest.
  • Poor credit can result in high rates. This is true for most lenders but bears repeating when a service’s credit requirements are low or nonexistent.
  • Only connecting is free. Lendio did away with a $99 monthly subscription in 2011. You’ll pay an origination fee on any loan you get, which goes to Lendio. And you won’t know what that origination fee is until you finalize the loan offer.
  • Lenders can access your personal info. Lendio conducts a soft pull on your credit and can give its partners access to your personal details after you apply. A soft pull doesn’t harm your credit score, but lenders may use the information from your credit report to market to you long after you’ve gotten a business loan.

Is Lendio’s online business loan marketplace safe to use?

Yes. More than 1,000 Trustpilot reviewers give Lendio an average 9.4 out of 10, and 87% think it’s “Excellent.” And though it’s not accredited with the Better Business Bureau (BBB), it still garners an A+ rating.

As far as online complaints go, bad experiences appear to be rare. The only red flags we saw were a handful of customers who say a Lendio-affiliated lender pulled a hard credit check without their knowledge. There’s also a chance that Lendio will give your information to lenders without being completely upfront about it.

What about Lendio’s website?

Lendio uses SSL technology to encrypt your sensitive personal and financial details during credit card transactions and any time you enter this info on its site. What’s more, its privacy policy — like most of its site — is in plain English, making it easy to understand and follow.

Am I eligible?

To apply through Lendio, you need to meet a few basic requirements.

  • You’re a citizen or legal resident of the US or Canada. Some also require that your business primarily operate in the US or Canada.
  • You have a business bank account. Lenders need a place to deposit your money, after all.
  • You have a credit score of at least 560. Lendio can find you a bad-credit business financing, sure. But you might want to first improve your credit to avoid obscenely high rates.

How do I apply?

  1. Click the Go to site button on this page to head straight to Lendio’s application form. Enter the amount you need, how long you’ve been in business, how much your business brings in monthly and your general credit score. Then click See Your Options.
    Lendido apply image, step one
  2. Review loan options you could potentially qualify for. If you like what you see, click Start Application.
    Lendido apply image, step two
  3. Fill in your personal information to create an account, carefully read the terms of your application and click Continue.
    Lendido apply image, step three
  4. After you’ve set up your account, a Lendio funding manager will be in touch to go over your options and help you find the best one for your business.
  5. Carefully weigh each lender before making a decision, reading and understanding your loan’s terms and conditions before signing a contract. You could receive your money in as few as little as 24 hours — though many loans take longer.

Lendio’s intuitive application lets you save your progress, so you won’t have to fill it out all in one go. Be aware that by setting up an account, you’re consenting to Lendio giving your contact information to its partners.

What documents do I need to apply?

Because Lendio isn’t a lender, it doesn’t require any specific documentation requirements itself.

However, if you’re connected to one of its partners, you may need to provide:

  • Government-issued ID. This could be your driver’s license or passport.
  • Business and tax returns for the past three years. You might want to gather this ahead of time for convenience.
  • Personal tax returns for the past three years. If you don’t have them on hand, request copies from the IRS.

I got a business loan through Lendio. Now what?

It’s time to start paying it back. To avoid missing payments, see if you can set up autopay from your business’s bank account. And if you face unexpected financial problems that could affect your repayments, contact your lender immediately to work out a possible solution.

Bottom line

For the short-staffed business without the time or resources to find a solid business loan option, Lendio might be a way to find a lender willing to offer a right financial product that fits your needs. But prepare to make some compromises, like allowing the distribution of your personal information to lenders or limiting your options to only those in Lendio’s network.

To get the best deal you’re eligible for, compare a full suite of business lenders before settling on one.

Frequently asked questions

Anna Serio

Anna Serio is a staff writer untangling everything you need to know about personal loans, including student, car and business loans. She spent five years living in Beirut, where she was a news editor for The Daily Star and hung out with a lot of cats. She loves to eat, travel and save money.

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