Submit one online simple application to potentially get offers from a network of over 75 legit business lenders.
This is where a loan-connection service can help. These services work to fit your needs to their network of lenders willing to extend the exact hand you’re looking for.
We take a look at Lendio, an online business loan marketplace that offers a quick, hassle-free process that can result in one or more financing options for the typical business owner.
|Product Name||Lendio Business Loan Marketplace|
|Min Loan Amount||$500|
|Max. Loan Amount||$5,000,000|
|Min APR||From 6%|
|Minimum Loan Term||1 year|
|Maximum Loan Term||25 years|
|Requirements||Must be 18+ and operate a business in the US or Canada.|
- 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’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.
- 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.
What exactly is Lendio’s online business loan marketplace?
Lendio offers a turnkey business loan-connection service. Unlike a direct lender, Lendio doesn’t directly finance loan products. Instead, it can help 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 will get an origination fee based on the loan type and amount.
Twelve types of financing available
Through Lendio, you could be connected to a wide range of business financing options that include:
- 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.
- SBA loans. This is a low-interest loan option, backed by the Small Business Administration that’s designed to help small businesses and certain startups. It gets solid rates because the government agrees to step in if you default, making risky businesses less of a lending liability.
- 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.
- Term loans. Your standard loan option best for one-time large expenses, fixed-term loans have a set repayment period which is usually several years. Business owners typically use fixed-term loans for things like opening a new location or upgrading supplies.
- 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.
- 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 will accrue the longer you keep a balance.
- Equipment financing. Secure your loan with the equipment you’re purchasing in exchange for better rates.
- Commercial mortgages. These are similar to equipment loans, but with the real estate offered as collateral instead.
- 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.
- 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.
- Startup loans. Lendio helps startups navigate financing options suitable for a new, growing business without selling equity.
- Business acquisition loans. Buy or refinance a new business or franchise with these loans, which are commonly SBA 7(a) loans.
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.
Compare more business loan 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, tou’ll have a “funding manager” that walks 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. It’s a one-stop online business loan marketplace that can likely find an option that’s 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. But borrowing through Lendio means you might not get the best deal available to you. You may want to weigh your offers against direct lenders to make sure you get a good deal.
- Pay-per-lead business model. Lenders pay Lendio a fee each time they get a client through its network. This means it’s possible 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. It’s 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. But you’ll still pay an origination fee on any loan you get, which goes to Lendio. You won’t know what that origination fee is until you finalized the loan offer.
- Lenders can access your personal information. Lendio conducts a soft pull on your credit and then 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, it still garners an A+ BBB rating.
As far as online complaints go, bad experiences appear to be far and few between. 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 forthright about it.
What about Lendio’s website?
Am I eligible?
To apply through Lendio, you need only be at least 18 years old and operate a business in the US or Canada. However, potential lenders may require that:
- 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?
- Click the Go to site button on this page to go 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.
- Review loan options you could potentially qualify for. If you like what you see, click Start Application.
- Fill in your personal information to create an account, carefully read the terms of your application and click Continue.
- Once 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.
- Carefully weigh each lender before making a decision. You’ll want to read and understand 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 even 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 you business’s bank account. And if you have any financial problems that might affect your repayments, make sure to contact your lender immediately to work out a possible solution.
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 the right financial product for 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 make sure you’re getting the best deal, it’s a good idea to compare other business lenders before settling on one.