Small business owners often need funding to start, expand, or sustain themselves through challenging periods. Securing small business loans presents numerous obstacles. That’s where Lendio steps in to help these entrepreneurs find financing solutions that align with their objectives.
Lendio doesn’t provide its own business loans. Instead, it operates a marketplace that connects borrowers with over 74 lenders nationwide. If you’re exploring funding options for your small business, this Lendio review explains how their platform might assist you.
What is Lendio?
Lendio operates a business loan marketplace that connects small business owners with lenders suited to their funding requirements. Based in Lehi, Utah, the company launched in 2011.
The company has facilitated over $12 billion in funding through more than 300,000 loans for small business owners. Their lender network offers various financial products including business lines of credit, SBA loans, short-term financing, and equipment loans.
Approximately 80% of small business loan applications face rejection from traditional banks. Lendio aims to change this reality, empowering business owners to pursue their entrepreneurial ambitions successfully.
As a loan aggregator, Lendio acts as an intermediary, allowing you to explore financing options from multiple lenders. Using Lendio’s platform is completely free.
Some lenders may charge origination fees for their financing products. Lendio maintains transparency so you can clearly understand each lender’s loan terms and conditions.
What does Lendio offer Small Business Owners?
Lendio’s platform features diverse small business loan products. Through their lender network, you can compare various financing options from multiple sources. Here are the loan types available on Lendio’s platform:
Accounts Receivable Financing
When cash flow issues arise from waiting on Net-30 receivables, accounts receivable financing provides relief. AR financing relies on actual debts owed to your business or tangible assets, making qualification typically easier.
Credit scores aren’t relevant for these financing solutions. Receive up to 90% of your receivables as funding.
Terms extend up to one year, with funding available within 24 hours. Interest rates start as low as 3%.
Business Line of Credit
Business credit lines provide flexible access to cash for ongoing expenses. These versatile loans serve multiple purposes like invoice payments, location expansion, or staff hiring.
A business line of credit functions as revolving credit, similar to a credit card. The minimum credit score requirement is 560.
You receive a set credit limit to draw from as needed. Paying down the balance restores available credit.
Lenders through Lendio offer credit lines between $1,000-$500,000 with 1-2 year terms.
Funding occurs within 1-2 weeks of approval, with interest rates ranging from 8-24%.
SBA Loan
The U.S. Small Business Administration (SBA) supports small business funding, particularly during economic hardships. These federally-backed loans reduce lender risk.
Lendio’s platform offers six SBA loan types including:
- SBA 7(a) loan
- SBA 504 loan
- SBA Express Loan
- CapLines
Loan amounts reach up to $5,000,000, with 10-30 year terms. Funding typically occurs within 1-2 months after approval.
No minimum credit score applies, though SBA loans require extensive documentation and strict eligibility criteria, making them more challenging to obtain.
Interest rates are set based on the prime rate.
Short Term Loan
Short-term loans offer quick, flexible financing for unexpected expenses, new opportunities, or temporary projects.
Qualification typically requires strong credit, with a minimum score of 650.
Businesses should be established for at least two years.
Loan amounts range from $25,000 to $700,000 with 3-10 year terms.
Funding takes 3-7 business days from approval, with interest rates between 8-36%.
Business Term Loan
Business term loans represent one of the most straightforward financing solutions available. Lenders provide an upfront lump sum.
Lenders evaluate both personal credit scores and business finances for qualification.
Repayment occurs through regular installments over a predetermined period. Term loans fall into two categories: 1) Short-term loans with quicker repayment schedules 2) Traditional term loans spanning multiple years.
Loan amounts range from $5,000-$2,000,000 with 1-5 year terms. Funding can occur within 24 hours of approval, with interest rates starting at 6%.
Business Cash Advance
Cash advances allow businesses to access capital by borrowing against future revenue. Repayment occurs through fixed daily percentages of sales.
Newer businesses find this financing more accessible. Cash advances work well when you need rapid funding without waiting for traditional loan approval.
Lenders typically don’t require credit checks for this financing type.
Loan amounts span $5,000 to $1 million with terms up to 2 years. Funding is available within 24 hours, with interest rates starting at 18%.
Equipment Financing
Equipment financing helps businesses purchase or lease equipment without depleting working capital. This asset-based lending uses the equipment as collateral.
Approval rates are higher since loans rely less heavily on credit. This solution covers technology systems, office furniture, vehicles, medical equipment, and more.
Personal guarantees are typically not required.
Loan amounts range from $5,000-$5,000,000 with 1-5 year terms. Funding can occur within 24 hours, with interest rates starting at 7.5%.
Commercial Property Mortgage Loans
Commercial mortgages help small businesses with property-related expenses, including construction or securing business premises.
Properties can include restaurants, retail spaces, factories, or offices. These loans also support business expansion to new locations.
Loan amounts range from $250,000-$5,000,000 with extended 20-25 year terms.
Funding typically occurs within 45 days, with interest rates between 4.25-6%.
Startup Business Loans
Startup loans enable small businesses to invest in growth acceleration. These loans fund employee hiring, monthly expenses, equipment purchases, and other needs.
Personal credit history and credit score are primary factors, making these loans more accessible to new businesses.
Loan amounts span $500-$750,000 with terms up to 25 years. Funding takes 2-4 weeks, with interest rates from 0-17%.
Business Acquisition Loan
These loans facilitate business purchases, whether acquiring existing companies or franchise locations.
Qualification requirements vary by loan type.
Loan amounts range from $5,000-$5,000,000 with revolving or 10-25 year terms.
Funding occurs within 30 days, with interest rates starting at 5.5%.
Business Credit Card
Business credit cards serve multiple purposes beyond providing funds. They help build business credit history while tracking expenses.
Business credit cards cover any business-related expenses.
Personal credit score is the primary qualifier. Scores of 680 or higher typically qualify, with business longevity as an additional factor.
How to Qualify for a Business loan on Lendio
Lendio isn’t a lender—they connect you with partnered lenders who make offers available to local businesses.
Each lender maintains its own qualification standards. Here are general guidelines for likely approval criteria:
Credit Score
Lendio partners set their own minimum personal credit score requirements. While specific requirements aren’t detailed for all options, here are some advertised minimums:
- Business line of credit – 560
- Equipment financing – 650
- Startup business loan – 680
Target at least a 670 credit score to improve your approval odds.
Length of Time in Business
Requirements vary by financing type, but generally you must operate for at least six months.
SBA loans typically require longer operational histories.
Annual Revenue
Minimum annual revenue requirements typically range from $50,000 – $250,000.
Applying for a Lendio Loan
Lendio’s application process is straightforward. Start by creating an account to complete your application.
Provide basic information about yourself, your business, and finances. Lendio conducts a soft credit check to identify lenders with the highest approval probability. This check won’t impact your credit score.
Matching lenders will submit loan offers. A Lendio representative will contact you with available offers.
Review each lender and select the option that best fits your business needs. Once you choose an offer, proceed to funding.
Lendio Pros and Cons
Pro: Application process is streamlined
One application eliminates the need for multiple submissions to different lenders.
The application takes approximately 15 minutes to complete. Funding can occur within 24 hours of accepting an offer.
Pro: Multiple Lenders are part of its network
Over 300 lenders participate in Lendio’s platform, increasing your chances of finding suitable financing options and favorable rates.
Pro: Types of financing options
The extensive lender network offers diverse loan types including business term loans, credit cards, equipment financing, short-term loans, and accounts receivable financing.
Pro: Availability of Loan Calculators
Before accepting offers, ensure accuracy with loan calculators designed for different financing types to match your financial situation.
Available calculators include:
- Automated Clearing House (ACH) Loan calculator
- Business Term calculator
- Equipment Loan calculator
- Invoice Factoring calculator
- Startup Business Loan calculator
Pro: Live Chat Support
Live chat support provides quick, convenient assistance. Representatives help borrowers understand various loan options available through Lendio’s platform.
Pro: Easy to Qualify
Borrowers struggling with traditional lender qualification often find suitable options through Lendio’s 300+ lender network.
Pro: Customer Service is well received
Lendio reviews on Trustpilot highlight responsive, helpful customer service from their support team.
Pro: Reduces a lot of legwork
Finding lenders independently creates significant workload. Multiple applications compound this effort. Lendio streamlines the process by matching you with suitable lenders offering reasonable terms.
Con: Options are variable
While Lendio’s vast network is beneficial, they cannot guarantee rates due to the numerous participating lenders.
Since Lendio isn’t the lender, interest rates and fees aren’t fixed. The abundance of options may overwhelm some borrowers.
Con: Not a Lender
Lendio connects borrowers with lenders rather than providing direct financing. Individual lenders control all loan details including repayment terms, origination fees, and interest rates.
Con: Consultations are strictly virtual
No in-person funding consultations are available. All communication occurs through virtual channels, which may not suit borrowers preferring face-to-face discussions.
Bottom Line: Lendio Review
Lendio maintains strong online reviews and operates as a reputable, legitimate company. Keep in mind they share your contact information with their lender network, potentially resulting in multiple calls, emails, and mailings. If you want to save time by accessing multiple lenders simultaneously or need guidance choosing the right financing option, Lendio provides a viable solution.
