Lendistry business loans review September 2018 | finder.com

Lendistry business loans review

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Funding between $50,000 and $1,000,000 for businesses at least two years old.

Lendistry loans are for established small businesses looking to fund large projects — especially in high-risk industries. With loans starting at $50,000 and going as high as $1,000,000, it could be a great option for businesses looking to expand. You need at least two years under your belt to qualify, however, so those still in the startup phase might want to look elsewhere.
Product NameLendistry traditional term loan
Min Loan Amount$50,000
Max. Loan Amount$1,000,000
APR6% (starting at)
Interest Rate TypeVariable
Minimum Loan Term1 year
Maximum Loan Term5 years
Requirements600+ credit score and at least 2 years in business.
  • Have a credit score of 600 or higher.
  • Be in business for at least two years.
  • Have no bankruptcies in the past two years.
  • Have no past defaults on government loans, like student loans or mortgages from the Federal Housing Authority.

First, do I qualify?

To meet Lendistry’s minimum requirements for a term loan, you must:

  • Have a credit score of at least 600.
  • Be in business for at least two years.
  • Have no bankruptcies in the past two years.
  • Have no defaults on any government loans.

What is Lendistry?

Lendistry is a direct lender that offers traditional term loans from $50,000 to $1,000,000 that you pay back over one to five years. Its loans come with variable APRs from $1,000,000 as of September 2018. It also charges an origination fee of 3% to 5%, which is taken directly from your funding amount before it’s disbursed.

It’s not the quickest way to fund your business, but with amounts that high, speed typically isn’t the top priority. Your business can apply either online or over the phone. Generally, it takes between two and five business days to get your funds after submitting your application.

Other types of financing offered by Lendistry

On top of traditional term loans, Lendistry also offers the following types of financing:

  • SBA loans. These government-backed loans range from $50,000 to $250,000 with rates from 6.25% to 10.25% and terms up to 10 years. They also come with an additional set of eligibility requirements and more documentation.
  • Short-term loans. When your business needs funds for a quick fix, a short-term loan up to $500,000 might be what you’re looking for. You’ll find terms up to 1 year and APRs starting at 12% with this type of financing.
  • Bridge loans. Got funds coming in the near future? This short-term option can help cover your costs in the meantime. Here, you borrow from $50,000 to $500,000 with terms from 3 month as to 1 year and APRs starting at 8%.
  • Real estate loans. If you’re interested in opening up a new location, a real estate loan may be a good fit. You can get funding from $250,000 to $2 million with terms from one to five years and rates from $1,000,000.

What makes Lendistry’s business loans unique?

Lendistry’s business loans come in large amounts and relatively competitive rates. It’s a certified community development financial institution (CDFI), which means that it’s committed to providing affordable financing to underserved business communities. On top of this, it’s a signatory on the Small Business Borrowers’ Bill of Rights, a set of guidelines set by The Responsible Lending Coalition.

It’s generally more open to industries that are considered risky by other lenders. For example, it recently gave a trucking company a $125,000 loan to buy inventory and a construction company $130,000 in working capital — two types of businesses that lenders often won’t work with. It also frequently works with businesses in the healthcare, home improvement and restaurant industries.

What are the benefits of a Lendistry business loan?

  • Competitive rates. Variable APRs currently are from $1,000,000.
  • Additional resources. If your business needs help staying afloat, Lendistry partners with The Center, a nonprofit organization that offers webinars and workshops on topics like time management and marketing.
  • It’s a CDFI. As a community development financial institution, Lendistry is committed to providing affordable financing to businesses owned or located in underserved communities.
  • Open to high-risk industries. Businesses in the trucking, construction and restaurant industries are eligible for a loan from Lendistry.

What to watch out for

  • Fees. Lendistry’s term loan comes with an origination fee of 3% to 5% of the loan amount. You’ll also be hit with a prepayment penalty of 2% of the loan amount if you pay it back within the first year and 1% if you pay it back within the second year.
  • Might require collateral. Lendistry might require your business to back its loan depending on the funding amount, your business’s revenue and your debt-to-income ratio.
  • Not the fastest. You might want to consider other lenders if you’re facing a real emergency and need funds within a day.
  • Variable rates. The rate your business starts out with will likely change at least once over the life of your loan, making repayments more difficult to predict.

Compare other business loan providers

Rates last updated September 22nd, 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

What does the Internet say about Lendistry?

There’s almost nothing online about Lendistry. It gets an A+ rating from the Better Business Bureau (BBB), which it’s been accredited with since 2018. However, there are no reviews — or complaints — on its BBB page.

There are no mentions of Lendistry on Trustpilot or even the major online forums like Reddit as of September 2018. It also has no mentions on Yelp or other business loan forums that we could find.

Just a few companies Lendistry has funded

  • Sunbox — a retailer that sells light therapy lamps
  • California Cowboy — a retailer for men’s clothing
  • The Coop Yorba Linda — a party and kid’s play space
  • Mind & Body Treatment and Research Institute — a retreat and rehabilitation center

How do I apply?

Before you get started on your application, make sure your business knows how much funding it needs and meets Lendistry’s eligibility requirements. You’ll also want to have your business’s average monthly sales, tax ID number and the owner’s Social Security number on hand.

Eligibility

  • Have a credit score of 600 or higher.
  • Be in business for at least two years.
  • Have no bankruptcies in the past two years.
  • Have no past defaults on government loans, like student loans or mortgages from the Federal Housing Authority.

Steps to apply

You can apply either online or over the phone by calling 866-662-7297.

  1. Go to Lendistry’s site.
  2. Scroll down and fill out the form with basic information about you and your business. Then hit Apply Now!
  3. Wait for a member of the Lendistry team to get in touch with you by phone or email.

After that, Lendistry will guide you through the rest of the application process. Typically, you can get approved within one to two days after submitting your application. Once you sign your loan documents, it’s typically another one to three days before your business gets the funds.

How to apply step-by-step with screenshots

What documents do I need to apply?

The documents you need to apply varies depending on your creditworthiness, time in business and revenue. Typically, Lendistry asks to see:

  • Six months of business bank statements.
  • Two years of business tax returns.
  • One year of personal tax returns.

I got the Lendistry business loan. Now what?

Once you have your funds, your business is on the hook for repayments. Traditional term loans, SBA loans and real estate loans come with monthly repayments. Short-term and bridge loans come with weekly or even daily repayments.

Typically, Lendistry automatically deducts your repayments from your business’s checking account or directly from your credit card transactions on some short-term loans. Keep an eye on your business’s bank account and your loan balance, and contact customer service if you see a mistake.

Try to avoid paying off your loan early within the first two years: Lendistry charges prepayment penalties of 2% of your loan balance for paying off your loan within the first year, and 1% in the second. After that, your business could potentially save on interest by making extra repayments.

Bottom line

Lendistry could be a great option for business owners who need a high-dollar loan and work in industries typically considered risky by traditional lenders. Its rates are competitive, and its CDFI status means it’s made a commitment to working with underserved communities.

However, it’s one of the few business lenders that charges prepayment penalties, and it can take up to a week to get your funds.

Find out how Lendistry compares to other lenders by visiting our business loans guide.

Frequently asked questions

Image source: Shutterstock and lendistry.com

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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