Lendio Review 2024

Lendio Overview

Founded 2011, Lendio has a rich history. Today, the platform is looking to the future after establishing itself as the biggest small-business loan marketplace, with more than $2 billion lent to startups and small companies so far.

Its network expanded significantly in recent years, and customers can now explore loan options from more than 300 lenders. Lendio is a member of the Innovative Lending Platform Association, a leading trade body that represents online lending companies and helped with Lendio’s recent growth. Lendio is not accredited by the Better Business Bureau.

This site works as an aggregator of money lenders. When a business owner signs up and completes the short registration process, the site filters the lenders list to identify possible matches for the borrower’s needs.

The loans here come in many shapes and sizes with a range of additional services that your business may require. The wide range of options can be a bit overwhelming for individuals who are just starting out. But the user-friendly site offers comprehensive descriptions of each service, ensuring that securing funding for your company isn’t a terrifying task.

Lendio isn’t a direct money lender. It’s a business loan aggregator that serves as a middleman between small business owners and companies that offer money lending services. You can browse through the offers and read user reviews of the lenders by clicking on the Our Lenders page at the website.

Lendio is a free service with no hidden fees. However, some of the lenders do have origination fees. Luckily, it’s all pretty transparent, so you’ll know exactly how much you are expected to pay and why.

Lendio Financing Options

The Lendio franchise offers more than 10 types of loans. These include business credit card loans and a business acquisition loan in case your company is planning a big merger.

Each of these services is clearly outlined with guidelines on what you can expect from the loan as well as what types of businesses are eligible.

All have a minimum one-year payback term with some offering terms of up to 25 years. The most popular is the business term loan, which is an ideal solution for small business financing options.

Business Term Loan

Lendio small business loans start at $5,000 and go up to $2,000,000. The terms are flexible, so you can pay off your loan in one to five years with interest rates starting at just 6%.

Your application for a business term loan starts with a short questionnaire where you’re expected to provide information about your business. That includes your credit score, revenue, and type of business. The site will use your answers to match you with potential lenders, providing an option to further adjust your plan afterwards.

Business Line of Credit

Another popular loan option is a highly flexible financial safety net. It ranges from $1,000 to $50,000 and carries an interest rate that can go as high as 24% – but only on the money you use. The approval time is slower, taking up to two weeks, and there are certain requirements:

• Credit score of 560 or higher
• Minimum annual revenue of $50,000
• Business needs to be at least six months old

Startup Loan

The lenders on this marketplace offer very flexible terms and generous amounts for startup loans, with payment terms of up to 25 years and interest rates ranging from as little as 0% to 17%.

• Credit score of 680 or higher
• Must be in business for at least 6 months
• Some lenders may require collateral

Business Acquisition Loan

Buying a business? Then this loan is perfect for you. Receiving your funds can take up to 30 days, but you can request as much as $5 million and pay it off in 25 years at low interest rates. The general requirements for this loan are:

• Good credit score
• Long time spent in business
• High monthly revenue
• A developed business plan
• Assurances you are investing in viable business

Equipment Financing

To grow a business you need tools and additional manpower. This is where equipment financing comes into play. This is another fast loan approved within 24 hours with an amount of up to $5 million and interest rates starting at just 7.5%. Here’s what you’ll need to get approved for this loan:

• Credit score of 650 or higher
• $50,000 or more in annual revenue
• Business needs to be at least 12 months old

Lendio Application Process

Applying for a small business loan at Lendio is a quick and straightforward process. There is no minimum credit score required for signing up. The business must be based in the US, and the company’s revenue must be at least $10,000 per month for the past six months.

The application can be submitted in just a few simple steps:

• On the homepage, click Get Loan Offers.
• Fill out all the business and personal information fields.
• Upload business account statements for the past six months and any additional documents required for the selected loan.

Uncomfortable with online forms? You can apply over the phone if you prefer.

What Information Do I Need to Apply?

To complete your business loan application, you’ll be asked to submit:

• Business and DBA name
• Business phone number and address
• Business start date
• Business type and industry
• Business tax ID number
• Monthly revenue of your business
• Owner’s Social Security number
• Average monthly payroll and number of employees

Next, select the purpose for your loan from the following list:

• Expansion
• Working capital
• Payroll
• Purchasing a business
• Purchasing a franchise
• Equipment purchases
• Real estate purchase
• Buying out a partner
• Starting a business
• Finance accounts receivable

Note that your application for free business loans doesn’t affect your credit score. After you fill out the forms, Lendio will process your information. You’ll then be connected with a funding manager who will pair you with lenders compatible with your credit score and selected type of loan.

You’ll then be presented with the amount that you are eligible to borrow and the loan term. While lenders usually don’t require any additional documentation, be prepared for a potential origination fee. The fees depend on individual lenders, and Lendio’s agents will be there to guide you through the process.

In-Depth Presentation of Lendio Features

There is a great deal of variety of short-term and long-term loans as well as the amounts one can borrow through this site. A small business can borrow between $500 and $5 million via Lendio and then pay off that loan in one to 25 years.

We like how accommodating Lendio is. The platform gives users the option to browse and learn about lenders before creating an account, and there are no fees for using the service.

Quick financing solutions aren’t really the main attraction here, especially with the high rates most lenders apply for such requests. Instead, Lendio is more focused on longer-term and more affordable loans for startups and established businesses.

Loan Amount and APR Details

The general rule is that the longer it takes you to pay off the debt, the more interest you’ll pay. This also applies to interest rates and fees. The silver lining is that short-term loans don’t have the sort of high rates that would make them unattractive.

• Loan amount: $500 – $5 million
• Total interest rate: 4%-30% APR
• Fees: No website fees, but some lenders do charge application and origination fees
• Loan term: 1 to 25 years
• Payment options: Monthly

Another reason Lendio is a preferred marketplace for many borrowers is its loan calculator tool. No need to crunch the numbers by yourself or do complicated math. With just a few clicks, the tool will calculate your monthly payment and total payback amount.

There are no fees. The only extra fee you might run into is an application or origination fee that individuals lenders charge. But you’ll be made aware of any costs.

The terms under which a loan gets approved depend on your personal credit history, loan term, the financial health of your business, and the purpose of the loan.

A personal guarantee is expected for each of the loans you request at Lendio. Some of the lenders will also require collateral in order to approve the loan. For most of the loans, the requirements are flexible and easily negotiable.

Eligible and Non-eligible Businesses

The company does initially accept applicants from all industries and doesn’t say anything about refusing them on the basis of their business. However, lenders have the final word, and they decide who they lend the money to. Lendio lists the industries that are least likely to get a loan through the platform:

• Auto dealers
• Gambling-related businesses
• Hunting, fishing, and forestry organizations
• Attorneys
• Non-profit organizations
• Mining companies
• Commercial real estate
• Insurance companies

Lendio Payment Terms

While rates depend on the term of your loan, payments are always made on a monthly basis. You can use the on-site calculator to plan your monthly payments in advance, preparing your budget before you even apply for the loan. Once you decide on a loan, you’ll be able to schedule payment dates with your dedicated Lendio assistant.

The minimum loan term is one year, while the maximum is 25 years. The exact terms and possible penalties or benefits depend entirely on the lender you choose through the platform.

The Bottom Line

There is no shortage of reasons Lendio is the largest marketplace for small business loans. Our review highlights some of those reasons, including the quick application process, the wide variety of loans, and the flexible terms. This is a highly sophisticated platform that automates the loan application process, helping small businesses get funding faster and with less paperwork.

Although some applicants won’t get approved, the company’s founders claim that their approval rates are higher when compared to more traditional loan providers. In addition, the affordable payment plans make Lendio a wise choice for any business owner looking for capital.