- The Good
- Easy to use
- Many financing choices
- Tailored small business funding
- Potential for great rates and terms
- The Bad
- Financing process can take a long time
- Can be difficult to actually obtain funding
- Cost of borrowing can be high
Lendio doesn’t actually provide small business financing. It’s a business loan marketplace that matches small business owners with suitable lenders. This makes Lendio a good place to search for funding, as it brings everything into one platform. Apply for a loan here.
Other Business Loan Reviews
Since Lendio just facilitates the loan process, it’s hard to pin down actual APR and fees. Lendio works with over 75 lenders. Depending on your personal credit score, the company’s financial health, years in business, and other factors, you can expect an APR anywhere from the low single digits to near 100 percent. Fees are usually between 0 to 5 percent of the total loan. Since Lendio’s platform gives you plenty of tools to compare rates and fees across lenders, you have a good chance of getting a better deal on a loan here than by going directly to individual lenders. Lendio does not charge a fee to customers for its services. The platform takes a commission from the lenders.
- $1 million+
No matter how much (or how little) funding you need, Lendio can serve your needs. That’s because Lendio facilitates the small business financing process, connecting you with lenders whose qualifications you meet. There are only a few other services that do the same.
- Must currently own a business or be planning to start a business
As a loan marketplace that works with over 75 lenders, basically any small business owner — and even soon-to-be small business owners — can find a loan. If you’re unsure of what you can qualify for, Lendio is arguably the best place to begin your search for small business funding. The platform will show you which lenders are likely to approve you.
- Loan Process
- Initial sample application
- Analysis by over 75 different lenders
- Offers from approving lenders
- Completion of funding process
Since Lendio facilitates the loan process, the application can take a little longer than going directly to the lender, but the platform saves you time on research and helps you find the right lender.
You start by doing a sample application to get an idea of what loans you can get. Then, you create an account and fill out an application, which includes personal information and business data, such as revenue and account balance. Lendio does a soft credit check, too.
After that, Lendio shops your information around to see which lenders will approve you, which can take up to three days. Following that, Lendio contacts you to discuss the loans you can get. You compare and choose the one that’s best for you and then finish the application with the lender.
- Repayment Terms
Lendio offers you the chance to search over 75 lenders immediately. Whether you need a $1,000 loan with a one-month repayment term or a $100,000 loan with a five-year repayment term, you should be able to find it (and get it if you qualify). It’s truly difficult to find another service that can do all that for small business owners.
Lendio: User Reviews
The travel industry has Priceline and Expedia. It only makes sense that the platform model would also become popular in the small business financing world. Enter Lendio — a business loan marketplace that partners with over 75 active banks, credit unions, and alternative lenders.
Lendio works with traditional lenders such as the Small Business Administration and alternative lenders such as Kabbage and OnDeck, making it a good resource for any small business need. From equipment financing and merchant cash advances to lines of credit and invoice financing, you can find it all on Lendio.
How Does Lendio Work?
Lendio is a platform that matches small business owners with lenders whose qualifications they meet. It has a unique process for facilitating loan applications. Here’s an overview:
- Enter information, such as how much money you need, your personal credit score and monthly business revenue, to see a list of sample offers.
- Create an account and start an application. You’ll be asked basic information about yourself, including your Social Security number, so Lendio can do a soft credit check. You’ll be asked questions about your business, as well.
- Lendio will spend up to 72 hours shopping your information around with its partners. Then, you’ll be able to see what kinds of small business funding you can get.
- A Lendio representative will contact you. You’ll get time to compare loan offers, with Lendio’s assistance — a nice touch.
- You make your decision and then finalize the application with the lender.
Finding a loan that suits you through Lendio can take as little as a few days. Since each lender has a different process for approval and transfer of funds, it can be anywhere from 24 hours to weeks or months before you get funding. Keep in mind the lender’s funding process, especially if time is tight and you need cash now.
What Makes Lendio Stand Out?
Founded in 2006, Lendio has emerged onto the scene as one of the biggest new players in small business financing. That’s because it has capitalized on the platform model.
Specifically, Lendio stands out in the following five ways:
- Accuracy: While there are other business loan marketplaces, they arguably aren’t as good as Lendio when it comes to simplifying the search and connecting you with lenders that will actually approve you.
- Saved time: You don’t have to research or apply individually with lenders. Lendio does the legwork. The service can save you days of manpower.
- Seamless process: From the website design to the clear forms, the application is hassle-free.
- Variety of options: Lendio aims to connect you with any sort of funding — and it generally accomplishes that.
- Great customer service: From actual phone calls to help with comparing loans, Lendio does a good job of making sure its customers get the right loan.
Common Reviews of Lendio
Lendio’s service gets good reviews overall.
For instance, on TrustPilot, where you’ll find hundreds of relatively new reviews, customers praise Lendio’s great customer service, fast and easy application, abundance of funding options, and helpful assistance when comparing loans. Many say the service saved them lots of money by connecting them to the best possible lender. Others say Lendio gave them financing options when they felt they had nowhere to go.
Of course, there are some negative reviews. But they are few and far between. For example, on the Better Business Bureau’s website, customers have complained about undesirable rates and terms on loans they were offered. Others complain about the slow funding process in comparison to going directly to alternative lenders. Some were also surprised that they weren’t approved for loans they wanted. Do note that since Lendio is just a marketplace, these negative experiences aren’t necessarily the company’s fault.
Is Lendio Right for You?
The short answer is yes. At the very least, you should use the site as a resource to find desirable funding for your small business.
Whether you need a short-term cash infusion for payroll or a long-term loan for debt refinancing, Lendio has partners that can offer funding. On top of that, if you want more guidance when comparing loans, Lendio’s team is there to help.
Unless you need money by tomorrow, Lendio is a great option. A short time frame is arguably the only reason you shouldn’t start your search on a platform like Lendio.
Overall, Lendio’s platform model has been a great addition to the small business lending industry. It saves research time on your end by showing loans that you can be approved for in minutes.
As with any service of this type, compare the loans that Lendio offers. Choose the one that puts your business in the best position to thrive.