Lendioby Mel Feb 12, 2021 | 0 Votes | 92 Used | 0 Reviews - rate Lendio is a free online small business financing platform that connects customers to lenders, helping business owners find the best financing options by allowing them to search among multiple loan products from their marketplace of funders, including Bank of America and Kabbage. Apply Now Similar Sites Used
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Lendio is a free online small business financing platform based in Utah that connects customers to lenders. Not a provider of business loans itself, Lendio, instead, is an aggregator that helps business owners find the best financing options by allowing them to search among multiple loan products from their marketplace of funders, including Bank of America and Kabbage.
What You Get
Never in modern history have so many small businesses been so badly in need of loans to sustain their operations like they do now in the middle of the year-long coronavirus pandemic. And while many lenders are out there, it can be difficult to find a trusted one that meets the business’s particular needs and offers competitive, reasonable rates and terms.
Fortunately, lender marketplaces such as Lendio exist online to help make your search that much easier. What’s more, because they earn their revenue from collecting commissions from their lending partners rather than directly from the borrowers themselves, Lendio is a completely free online service.
As an aggregator rather than a loan provider, Lendio can be beneficial to a small business owner for several reasons: It has a wide variety of loan types suitable for smaller businesses (so you don’t have to compete with the larger-scale borrowers); the company does most of the work of finding financing for you (saving you time to focus on other matters); you can choose the most competitive loan package from among multiple trusted financial institutions ranging from big banks to business credit card companies (so there’s little chance of missing out on the best offer); and the service is absolutely free to use.
Any business can apply to use Lendio’s services, with an average of six out of ten businesses ultimately getting approved for a business loan through its service.
To use Lendio as a way to search for the right loan package for you, you simply need to click the Start Application button at the uppermost right hand corner of the Lendio.com website. In an online application that will only take you around 15 minutes to complete (compared with an around 25 to 29 hours to fill out and submit traditional lending applications), the platform asks a series of questions to predict which loan type will most likely match your qualifications including your business's industry, years in business, credit score, financial projections, fund disbursement, and monthly revenue. You can then quickly compare loan offers from multiple lenders for FREE without impacting your credit.
Furthermore, as a registered Lendio member, each borrower will also be assigned a fund manager to answer questions throughout the entire process—also free of charge. Once approved by your lender, you can then get the capital you need in as little as 24 hours.
Lendio has a network of 75+ lending partners offering a broad range of loan options from established, trusted financial institutions primarily focused on small business financing such as Bank of America, Fundbox, American Express, Kabbage, OnDeck Capital, Headway Capital, LendingClub, and more with financing options ranging from business credit cards and lines of credit; merchant cash advance and commercial mortgage; to short-term specialty loans, long-term traditional loans, equipment financing, accounts receivable financing, start-up loans, and even SBA Standard & PPP.
In general, to increase your chances of being approved for a loan by a lender, Lendio recommends you meet or exceed these qualifications: company has been in business for at least 6 to 12 months, a credit score of 550 to 650, and a monthly revenue of at least $10,000.
As mentioned previously, Lendio does not charge a fee for its service. Instead, Lendio’s revenue comes from its partner lenders. Per Lendio’s FAQ: “Lendio does not charge you to be matched to a potential lender. The offers that appear on the site are from companies from which Lendio receives compensation.”
Note, however, that if you are approved for a loan from any of Lendio’s partners, loan terms—and any corresponding fees—will vary, depending on the partner funder you’re working with. These charges may include fixed fees, interest rates, prepayment penalties, origination and administration fees, and other miscellaneous charges.
On average, you can expect the following terms to apply on the following loan types:
Business Lines of Credit - $1,000-$500,000 credit limit, 1 to 2-year term length, 8% - 24% interest rate
Short-Term Loans - $2,500-$500,000 borrowing amount, 1 to 3-year term length, minimum 8% interest rate
SBA Loans - $50,000-$5 million borrowing amount, 10 to 30-year term length, variable interest rate according to the type and year
Business Term Loans - $5,000-$2 million borrowing amount, 1 to 5-year term length, minimum 6% interest rate
Merchant Cash Advance - $5,000-$200,000 borrowing amount, up to 2-year term length, minimum 18% interest rate
Commercial Mortgage - $250,000-$5 million loan amount, 20 to 25-year term length, 4.25% - 6% interest rate
Equipment Financing - $5,000-$5 million borrowing amount, 1 to 5-year term length, minimum 7.5% interest rate
Accounts Receivable Financing - Up to 90% of receivables, 1-year term length, 2% factor rate
Start-up Loans - $500-$750,000 loan amount, up to 25-year term length, 0% - 17% interest rate
Lendio is a member of the Innovative Lending Platform Association, a trade organization that supports online lending and service companies assisting small businesses. But while Lendio on the whole performs above average to excellently with users when it comes to ease of application and qualification of loans, customer service, and technical support; Lendio is currently not yet accredited with the Better Business Bureau (BBB) and has recently come under question from the Federal Trade Commission and the SBA concerning “misleading coronavirus relief marketing” related to the Payment Protection Program (PPP).
With the Covid-19 pandemic continuing to affect the fortunes of hundreds or thousands, if not millions, of small businesses in the United States, owners understandably dread the prospect of stressing over how and where to get financial assistance. If you’re looking for a small business loan and don’t know where to start your search or don’t have the time to fill out multiple applications, consider using Lendio’s lender marketplace. Not only is the service FREE to use, but with over 75 varied financial institutions as partners, you have a greater than average chance of qualifying for the exact type of loan you need for your business to keep afloat—and at rates and terms that you can easily manage.