Lendio business loans: 2023 review
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At a glance
| Overall Score | 4.6 |
|---|---|
| Overview | Lendio is a loan marketplace that works with lenders to help you find the right funding from your business, from standard term loans to financing based on your future sales. |
| Loan amount: | $1,000-$5 million |
| Interest rates from: | 6.00% |
| Term lengths: | Up to 30 years |
| Minimum credit score: | 560 |
Who Lendio is best for
Lendio is best for small businesses that aren’t sure what type of financing suits their needs. Because of its large network of lenders, Lendio is able to narrow down potential options so you can select the right loan or line of credit.
And since its lenders include options that accept smaller businesses, startups and lower personal credit scores, you may be able to find an option even if your business has been rejected by lenders in the past.
Who Lendio may not be best for
Well-established businesses with a solid banking relationship with a lender may not have as much success with Lendio. Some of Lendio’s lenders charge higher interest rates than banks — although it may still be worth rate shopping since there is no hard credit check.
Lendio pros and cons
PROS
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75+ lenders to find the right fit
Wide variety of funding options for most businesses
Funding as soon as the next business day
CONS
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Potentially high rates based on loan type
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Not a direct lender
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May require extensive paperwork
Business loan types offered
Lendio works with lenders that offer a wide variety of options. You should be able to find a good fit for your business regardless of size, revenue or time in business.
Business term loansTerm loans are the standard option for businesses that have a large, one-time expense. Lendio’s partners accept businesses that have a monthly revenue of $8,000, a FICO credit score of 680 and two or more years in business. Like all term loans, Lendio’s partners allow your business to use funds for almost every expense to expand or cover gaps in cash flow.
Lendio also has partners that offer short-term loans. These can be funded in three to seven business days and have generally similar terms — you can borrow between $25,000 to $700,000 for up to 10 years. However, interest rates may be higher because of speed of the process.
Business lines of credit
Lendio’s partners offer business lines of credit to businesses that have at least six months in business, an annual revenue of at least $50,000 and a FICO score of 560 or higher. Like any line of credit, these are flexible and allow your business to use funds as needed — and pay interest only on what is borrowed.
However, the maturity date for a line of credit is only two years. If your business needs to spend money consistently, it may be better to look into a business credit card that offers the same flexibility and additional rewards.
SBA loans
The U.S. Small Business Administration backs a wide variety of SBA loans to make it easier for business owners to get financing. Because the SBA shoulders part of the lender’s risk, you may be able to score a significantly lower interest rate than with other, similar loans.
Lendio works with a variety of SBA lenders to help you find funding, but you will need to submit quite a bit of paperwork and be ready to wait one to two months before your loan is funded. You’ll need a personal credit score of 600 or more.
Accounts receivable financing
Accounts receivable finances — also known as invoice financing — uses unpaid invoices as collateral. It isn’t technically a loan, but it is a common option for small businesses that may not otherwise qualify for a business loan or line of credit. Lendio’s partners charge a fee starting at around 3 percent of the total invoice amount. So if you have an unpaid invoice for $100,000, you will be able to receive up to $90,000 immediately and owe a fee equal to $3,000 when your invoice is paid.
Business cash advances
Cash advances are designed to cover gaps in cash flow. They have higher interest rates than other business loans because you are borrowing against future income — usually in the form of credit card sales. Because of this, they have less strict eligibility requirements and quicker funding speeds than other similarly sized loans. However, Lendio does not list specifics on what its partners offer.
Equipment financing
Equipment financing is meant to purchase or lease large pieces of equipment necessary for your business. Lendio’s partners focus on revenue and general cash flow. And because the equipment acts as collateral for the loan, interest rates tend to be lower — although like all loans, it will depend on your business’s revenue and age. The minimum credit score is 650.
Other loans offered by Lendio
Lendio’s partners also offer commercial mortgages, startup loans and business acquisition loans.
Loan type Amount Terms Interest rate Commercial mortgages $250,000-$5 million 20-25 years From 4.50% Startup loans $500-$750,000 Up to 25 years 0.00%-31.00% Business acquisition loans $5,000-$5 million 10-25 years From 5.50% The exact terms and eligibility requirements depend on the type of loan your business needs and the lender with which you’re matched. In many cases, you will be able to work with the lender Lendio partners you with to determine the best way to use your funds and expand your business.
Do you qualify?
Because Lendio is not a direct lender, there are no set eligibility criteria. However, your business will need to meet a few basics for most loans:
- At least six months in business — but often one or two years
- Annual revenue of $50,000 or more
- A minimum credit score, usually between 560 and 680
Other limitations, like how you can use the funds, will be determined on a lender-by-lender basis.
What we like and what we don’t like
Lendio is a well-established service for businesses, but if you’re looking for a direct lender with a brick-and-mortar location, you may want to consider something else.
What we like
- 75+ lenders to find the right fit: Lendio is not a direct lender — it partners with more than 75 lenders across the U.S. This allows it to help businesses find funding no matter where they are located.
- Wide variety of funding options for most businesses: Lendio works with everyone from short-term lenders to lenders that offer SBA loans. No matter where you business is at, it likely has funding options that can meet your needs.
- Funding as soon as the next business day: While some loans — like SBA loans — may take weeks, Lendio partners with lenders that may be able to fund your loan within 48 to 72 hours after you submit an application.
What we don't like
- Potentially high rates based on loan type: Depending on the size and age of your business, you may receive offers from lenders that charge high rates. Because Lendio doesn’t disclose upper limits for most of its loan types, it’s hard to know what rate you could see before you apply.
- Not a direct lender: Lendio is a network that partners with a wide variety of lenders, but it does not offer business loans itself. Once you find a lender that suits your business, Lendio is out of the picture — and you’ll be working with the lender you applied to instead.
- May require extensive paperwork: Lendio may require you to submit information on your business’s tax status, payroll and other finances in order to complete an application.
How to apply for a loan with Lendio
Lendio’s application requires quite a bit of documentation to find the right lending option for you.
Along with the below documents, you’ll need to provide information such as your general loan purpose, industry and the state in which your business is located. Other information may also be required depending on the type of loan you need and the lender you are matched with.
You can contact Lendio by phone at 855-853-6346. Its customer support is available Monday through Friday from 7:30 a.m. to 5 p.m. MT. It also has a form for emailing concerns, but no direct way to email its support service. And depending on your area, you may be able to use its Lendio Local service to find in-person help.
Lendio FAQs
How Bankrate rates Lendio
Overall Score 4.6 Accessibility 5.0 Lendio’s partners offer a huge range of funding solutions for diverse companies. Affordability 3.8 Though starting rates are solid, upper limits and fees are less clear and vary by lender. Transparency 5.0 Matching with lenders requires only a soft credit check. Customer experience 4.8 Lendio offers a convenient online application and both phone and in-person support. Flexibility 4.6 Lendio scores high for the wide array of loans its partners offer. Methodology
To select the top small business lenders, Bankrate considers more than 20 factors. These factors include loan amounts, approval and funding times, credit requirements, APR or factor rate ranges, fees, and easy-to-find rate and fee disclosures. Bankrate reviewed more than 20 lenders and gave each a rating, which consists of five categories:
- Accessibility: Factors considered in this category include minimum loan amounts, approval and funding speed, minimum annual revenue and minimum credit score.
- Affordability: This section measures interest or factor rates and fees.
- Transparency: How easy it is to find important rates, fees and eligibility requirements are considered in this category.
- Customer experience: Customer service hours, online applications and app availability are considered in this category.
- Flexibility: This category considers factors like the number of loan products and ability to change payment due date.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.