Loan applications can be daunting with their neverending paperwork, long approval process, and the hard-to-grasp lingo. That’s why Lendio reviews like this one are particularly helpful, especially now, for borrowers in the United States looking for
relief financing options and information.
We’re here to answer all the important questions.
(Image source: Lendio)
Lendio is America’s largest small business loan market place that lets small businesses in need of cash borrow money online instantly. Lendio has over 300 unique lenders and gives applicants access to more loan options than any other financial institution.
Let’s get this out of the way before we get any further. Lendio is not a direct lender — instead, they are more like a matchmaker that pairs applicants with their network of reputable partner lenders.
Traditional lending applications from banks can stretch to up to 29 hours but Lendio’s simple online application process takes just 15 minutes. What’s better, you don’t need to have a minimum credit score to qualify. Their online platform has a proprietary algorithm that matches your application with an extensive network of lenders. You can view loan offers and with the help of a dedicated personal funding manager, you can compare those and find the right one for you.
- Start up loan options
- Business acquisitions loan options
- SBA Loans
- Short term loan options
- Business term loans
- Business credit card
- Equipment financing
- Commercial mortgage
- Accounts receivable financing
- Business lines of credit
- Merchant cash advances
- Paycheck Protection Program loans
With Lendio you won’t have to deal with banks or brokers or complicated financial lingo, they make the process as simple as possible so you can make an informed decision and find funding fast.
Lendio doesn’t require a credit check, there is no fee or obligation and once your loan is approved, you get ready access to working capital in as little as 24 hours.
Who is Lendio best for?
(Image Source: Lendio)
First, it’s important to note that the platform’s loans aren’t personal loans. If you’re looking for one of those, you might want to check our reviews of PersonalLoans.com, AmOne, or Loans Under 36, among others.
Marketplace platforms like Lendio are tailor-made for small businesses or first-time borrowers looking to start up a business. According to its website, the platform has facilitated 107,000 loans to small businesses and has helped small businesses secure over $1.4 billion in loans.
Whether you’re looking for SBA disaster loans, emergency funding, a PPP loan, a startup business loan or simply just looking to gain access to additional cash whenever you need it, Lendio has multiple loan products and options to fit all of your needs.
Whatever you need, Lendio has a loan for that.
Getting Started with Lendio
(Image Source: Lendio)
Firstly, you will need to complete a questionnaire that will ask:
- What kind of loan you’re looking for
- Loan amount
- How long you have been in business
- What your average monthly sales are
- Your personal credit score
- Company industry
If you’re looking to borrow money online, you should also note that Lendio advises that there are certain business types categorized as “restricted industries”; they might have a harder time getting loans approved through the platform. Those include hunting, fishing and forestry, auto-dealers, gambling, legal services, NPOs, mining, commercial real estate, and insurance businesses.
You will then fill out a free application with basic information like your business name, first name, last name, email address, and phone number. Lendio will then shop your application around to its network of lenders and they will find you loan options from the best available lenders.
Upon submitting your application Lendio will perform a soft credit check, so your credit rating won’t be affected. The minimum loan amount you can apply for is $500 while the maximum loan amount is $5 million.
You will then be assigned a personal funding manager to help you get a better sense of the kinds of loans and rates you qualify for based on your company profile and financial projections. They will also help you make a more informed decision on the right kind of loan for you. Once you find a lender, you will need to complete a more detailed application, and a more formal credit report will be pulled, but the approval process shouldn’t take more than 72 hours.
The bare minimum paperwork you will need is:
- A signed loan application
- Six months worth of the latest business account statements
- A mortgage verification (or verification from a landlord)
- Monthly sales figures
- Company debt
Once you’ve completed this part of the application, you will continue with your chosen lender. That process can take anywhere between two days and two weeks, depending on the lender.
You need to be aware that you are not automatically guaranteed funding. According to Lendio, about seven out of 10 loan applications are approved through their service.
Terms & Requirements
(Image Source: Lendio)
Small businesses are probably the most vulnerable, particularly in these uncertain times when most people don’t know where their next paycheck will come from. Once you decide on using Lendio to borrow money, there are a few terms and requirements that you need to be aware of.
Let’s go through them.
Terms and requirements will differ from lender to lender and will depend on the type of loan you’re applying for but the basic Lendio requirements are:
- Applicants must be over 18 years old
- Applicants must have a business checking account
- The business needs to be based in the U.S
- It needs to have been active for at least six months
- It also needs to have a gross revenue averaging at least $10,000
- The business needs to have been solvent for at least three years
Unlike personal loans, the loan amount term on Lendio loans can go all the way up to 25 years. An extended loan term lets you cut your monthly payments and frees up some additional funds monthly that could be redirected to keeping your business functioning efficiently.
The Lendio reviews on consumer message boards are overwhelmingly positive. Lendio has 5,210 reviews on Trustpilot, 4782 of them are “excellent” five-star reviews with a healthy heap of praise for how quick and easy it was to get Lendio SBA loans approved. The reviews we read had particularly high praise for the personal funding managers, who are said to go above and beyond in the service of their clients.
We also read the 96 one-star reviews and most of them pointed to process issues that reared up once Lendio handed them over to their chosen lender. The platform, however, has a community manager on Trustpilot that replies to and follows up on each negative review.
Lendio has an overall 4.9-star rating on Trustpilot based on 5,210 reviews, a 3.5-star rating on Consumer Affairs based on 106 reviews and a 4.9-star rating on Glassdoor based on 153 reviews.
Pros & Cons
Every product and service has its pros and cons and Lendio is no different. Prospective applicants need to explore the advantages and disadvantages of Lendio so they can make a well-informed decision.
- Lenient business loan requirements
- Applying is free and it doesn’t affect your credit score
- A+ rating on the Better Business Bureau
- No minimum credit score to qualify
- Simple and easy pre-approval process
- Personalized customer service
- No way to track the lender application process
- Potential impact to credit score
- High-interest rates on some loan
- Some loans require extra documentation
- Some loans impose a prepayment penalty
We would be remiss not to mention that the cons are things that you should come to expect from the loan application process and aren’t anything too extraneous. No process is perfect but Lendio is clearly trying their best to make it as seamless and hassle-free as possible.
- 1 to 5 years for traditional business loans
- At least 10 different loan types
- Loan amounts range from $1000 to $2 million
- The loan approval process takes up to 72 hours
- 4.0% – 30.0% ARP
- Prepayment penalties vary from lender to lender
(Image Source: Lendio)
Rates & Fees
Lendio doesn’t charge any fees unless you get funded. Once your chosen loan is funded, the platform gets a loan origination fee. As with every loan, there will always be interest rates and fixed fees but that money goes to your lender.
Lendio lenders set their own rates and fees — some loans impose prepayment penalties while others don’t — but the estimated Annual Percentage Rate of the loan can be anywhere between 0% to 30% or factor 1.2 to 1.8.
Privacy & Security
They use Secure Socket Layer (SSL) technology during credit card transactions as well as other proprietary security measures to all repositories and transfers of user information.
You can contact Lendio on your social media platform of choice; Facebook, Twitter, Instagram, or LinkedIn. If you prefer the more direct approach then you can call their offices Monday to Friday (Eastern Time) on (855) 853-6346 or send them an email through their website.
Lendio’s website also has a FAQ section where they answer basic questions like who they are, what they do, and how they do it. The site also has a Business Q&A section for more in-depth small business loan questions.
(Image Source: Lendio)
Final Verdict/ Summary
Trying to find funding other than personal loans can be one of the most stressful and anxiety-inducing experiences when you’re a small business owner. Lendio is one of the top loan connection companies in the US and they are a great alternative to going through the endless red tape of bank loan applications.
Yes, we recommend Lendio. It’s clear from Lendio reviews like ours that the platform has more advantages than disadvantages, and will come in handy when your business is doing a cost/benefit analysis.
There might be lingering concerns like the possibility of high-interest rates or ineffective processes but those are outweighed by the benefits of drastically cutting down the application process and not having to manually do research on each and every single lender.
Lendio’s marketplace is one of the best ways to borrow money for small business owners and dedicated to helping you focus on what matters most, making sure your business succeeds.
Lendio just opened up a second of funding for their paycheck protection program, they are so committed to helping small businesses succeed that for every loan facilitated through their platform, they donate a percentage of funds to low-income entrepreneurs around the world through Kiva.
Commonly Asked Questions about Lendio
Is Lendio a legit company?
- According to the company website, Lendio has raised $1.4 billion in capital across 73,000 loans. They must be doing something right.
Is Lendio a direct lender?
- No, Lendio is more of a broker that facilitates loans through its partnerships with a broad range of lenders.
Does Lendio do PPP loans?
- Yes they do. In fact, Lendio has facilitated $5.8 billion in PPP relief funding with an average of $82,000.
How does Lendio make money?
- Lendio gets paid a professional service fee for all the approved loans from the lenders that they’re partnered with. In simple terms, they earn a flat fee on the amount funded.
Is it hard to get funded from Lendio?
- According to Lendio, there is a 7 in 10 chance of getting your loan approved. They have helped 65% of their applicants get funding. The Lendio reviews we read also suggest that the platform makes the loan application as easy as possible and they provide each applicant with a personal funding manager to walk you through the whole process.