Lendio online business loan marketplace review

Types of business financing offered by Lendio

Lendio stands out for its wide array of loan options for businesses of all sizes and revenues. Its network of lenders cover multiple types of business financing.

Here’s what you can expect — along with more information on how each option works.

Lendio also offers more options like business acquisition loans, business credit cards, commercial mortgages – if you want to explore additional financing options.

Lendio’s business loans in detail

Lendio’s connection service works to connect with you eight different types of business loans. Here’s a breakdown of how each works.

Short term loan

Lendio’s short term business loans are fixed-rate term loans that are paid back in monthly installments over a period of 18 months or less. It’s one of the fastest forms of funding that Lendio offers, with turnaround in as little as 24 hours.

Short-term business loans are best for covering slumps in cash flow, to pay for emergency expenses or to fund short term needs. With a short term business loan, repayments are typically made on a daily or weekly basis.

Rates, fees and terms

• Loan amount: $2,500 to $500,000
• Interest rates: Starts at 8%
• Loan term: Up to 18 months
• Funding time: As soon as 24 hours

Business term loan

Lendio’s business term loans are fixed-rate loans that are repaid in monthly installments over one to five years. These loans are often used to pay for ongoing costs like marketing, hiring new employees or to purchase fixed assets.

Rates tend to be lower than short term business loans, but to qualify, you’ll need good to excellent credit, plus strong monthly revenue and a business plan. But you can borrow more with a term loan and have longer to pay it back than with a short term loan.

Rates, fees and terms

• Loan amount: $5,000 to $2 million
• Interest rates: As low as 6%
• Loan term: 1 to 5 years
• Funding time: As soon as 24 hours

Business line of credit

Similar to a credit card, Lendio’s line of credit allows you to borrow as much as you need when you need it. You’ll only pay interest on the funds you use – and because Lendio offers revolving lines of credit, you’ll be able to borrow again once you pay your lender back.

Like term loans, lines of credit can be used for almost any type of business expense. They’re especially useful when you need to cover unexpected expenses or have a gap in cash flow during a slow season.

Rates, fees and terms

• Loan amount: $1,000 to $500,000
• Interest rates: 8% to 60%
• Loan term: 1 to 2 years
• Funding time: 1 to 2 days

Business cash advance

A business cash advance is a quick form of financing. Lendio’s cash advances offer businesses quick access to funds by borrowing against the money they will make. The money borrowed is repaid through a fixed daily percentage of sales.

These are short term loans that must be repaid within two years and interest rates run high – starting at 18%. But they can be a good option if you’re having a temporary slump in sales and you know you can pay it back quickly.

Rates, fees and terms

• Loan amount: $5,000 to $1,000,000
• Interest rates: Starts at 7.5%
• Loan term: Up to 2 Years
• Funding time: As soon as 24 hours

Accounts receivable financing

Lendio’s accounts receivable financing uses your company’s unpaid invoices as collateral in exchange for a lump sum of cash. In general, you can borrow up to 80% of your invoice’s value up front.

Afterwards, the factoring company collects payment from your customers. The factoring fee is normally based on the net terms it takes for your customer to pay the invoice. It usually starts around 3% of the invoice total.

Rates, fees and terms

• Loan amount: Tied to receivables
• Interest rates: Starts at 3%
• Loan term: Up to 1 year
• Funding time: As soon as 24 hours

SBA loan

The Small Business Administration (SBA) backs business loans, which can help you qualify even without perfect credit. Lendio is one of the few connection services that actively works with SBA lenders that offer the three biggest programs: SBA 7(a) loans, SBA 504 loans and SBA Express loans.

These three programs are term loans. SBA guarantees a portion of the loan, so lenders will consider slightly riskier businesses. This translates to more competitive interest rates and better terms — but it also requires a guarantee fee.

Rates, fees and terms

• Loan amount: Up to $5 million
• Interest rates: Prime+
• Loan term: 10 to 30 years
• Funding time: 1 to 3 months

Startup loan

A startup loan is a type of loan for new business owners who don’t have an established track record yet. While you’ll still need to meet certain eligibility criteria to qualify, requirements are more lenient than with other types of loans.

Lendio only requires that you’ve been in business for at least three months, have monthly revenue of at least $6,000 and have a credit score of 680 or higher. And with loan terms up to 25 years, they can offer more affordable monthly payments for those just starting out.

Rates, fees and terms

• Loan amount: Up to $150,000
• Interest rates: Up to 31%
• Loan term: Up to 25 years
• Funding time: 2 to 4 weeks

Equipment financing

Equipment financing is a good way to pay for any big or small equipment for your business needs. Credit approval may be easier with this type of loan because your equipment is used as collateral.

The good news is, the lenders in Lendio’s network may still consider you if you have a lower credit score — provided your business has enough revenue and cash flow. To qualify, you need at least $50,000 in annual revenue.

Rates, fees and terms

• Loan amount: $5,000 to $5 million
• Interest rates: As low as 7.5%
• Loan term: 1 to 5 years
• Funding time: As soon as 24 hours

3 more financing options

Lendio’s network also covers more business loans and financing — which makes it a great service if you’re really looking to explore all the avenues of funding available. It has lenders in its network that also offer:

• Business acquisition loans
• Commercial mortgages
• Business credit cards

Business acquisition loans and commercial mortgages are for established business owners and can be more difficult to qualify for — but they have competitive rates. If you’re interested, reach out to Lendio to determine if you or your business qualify.

Who Lendio is best for

Lendio is best for business owners who:

• Want to save time. Being able to fill out a single form and get matched to multiple lenders is easier and faster than prequalifying with each lender separately.
• Need help picking a loan. There are many types of business loans for different situations. Lendio can help you narrow down your choices so you can pick the right one for your needs.
• Need quick funding. Lendio offers certain types of loans that can be funded in as little as 24 hours after approval.

When to look for a different loan marketplace

Lendio may not work for you if:

• You don’t want your information shared. Your information will be shared with Lendio’s partners, which could result in an overwhelm of emails and phone calls.
• You don’t want to pay a fee. While Lendio doesn’t charge money for you to get connected, you do pay a fee if you get funded by a lender.
• Want to do your own research. If you’d rather research and call lenders yourself, Lendio’s model is probably not the right fit for you.

How Lendio compares to other providers

Compare Lendio’s rates, terms and features to other popular loan providers.

Lendio business loans

★★★★★

Finder rating 4.75 / 5

Go to site

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Loan amount

$500 – $5,000,000

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APR

Starting at 6%

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Loan term

1 to 25 years

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Requirements

Operate business in US or Canada, have a business bank account, 560 personal credit score

SMB Compass

★★★★★

Finder rating 4.4 / 5

Go to site

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Loan amount

$25,000 – $5,000,000

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APR

Starting at 5.99%

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Loan term

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Requirements

2 years in business, $25,000 monthly revenue, business bank account

Big Think Capital

★★★★★

Finder rating 4.7 / 5

Go to site

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Loan amount

$10,000 – $5,500,000

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APR

Starting from 6%

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Loan term

Up to 5 years

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Requirements

600+ credit score, 2 years in business, $100,000 annual revenue

Lendio reviews and complaints

Lendio receives high marks on the Trustpilot website, with the majority giving it excellent reviews. Multiple customers praise Lendio for its customer service team, mentioning helpful, patient and attentive service.

However, customers on its BBB page report that they struggled to contact Lendio and had issues learning more about their loan options after filling out Lendio’s online form. Others were unhappy about having their loan applications fall through after getting an offer and others complained about their information being shared out to third parties.

It appears that Lendio takes the time to respond to all customer complaints on the BBB site, with a 100% response rate and an A+ business rating for how it’s handled its customer complaints over the past three years.

How to qualify for a Lendio business loan

The exact eligibility criteria you and your business need to meet depends on the lender you’re connected with.

But you’ll typically need to meet these basic requirements:

• Based in the US or Canada
• Valid business bank account
• A minimum amount of time in business
• A minimum credit score of 560 (for certain types of loans)

According to Lendio, $3.2 million dollars has been funded to applicants that applied through Finder alone.

Required information

When you’re ready to get started, have this information on hand:

• Six months of business bank statements
• Social Security number
• Business Tax ID number
• Date of birth
• Ownership percentage
• Personal credit score range
• Personal income
• Estimated monthly revenue
• Estimated annual profit
• Existing business debt and monthly repayments

Lendio requires more information than other connection services, but this helps it narrow down your options to find the right lender for your business’s needs.

How to apply for a Lendio business loan

Because Lendio isn’t a direct lender, the application process is slightly different than if you applied through a bank. You need to provide some basic information about your business — including its industry, age and revenue over the last three months. You then have the opportunity to see what lenders your business qualifies for.

What industries does Lendio work with?

Lendio doesn’t state what types of businesses its network of lenders work with. However, you may struggle to find financing if you’re in a nontraditional industry like cannabis or adult entertainment or an industry that’s considered high risk.

Reach out to Lendio to find out if your business qualifies — and double-check with the lender you’re connected with to confirm your business is eligible before applying and doing a hard credit check.

What sets it apart?

Lendio’s most unique feature is its large network of 75+ lenders. It’s also upfront about its costs, terms and fees. Most connection services leave you in the dark about how much your business can borrow — and what it will cost. Lendio also works with some of the top lenders in the industry, including Kabbage, Bank of America, OnDeck and Amex.

Is Lendio legit?

Yes, Lendio is a legitimate marketplace. It doesn’t sell any of your personally identifiable information. Instead, it works on a pay-per-lead model. Its website is encrypted and secure, and its privacy policy covers a variety of details on how and why your information is collected and shared.

Lendio is useful if you’re not sure where to start, but you can also compare more of our best business loan picks and see similar connection services to find the right choice for your small business.