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Lendio is a platform that matches business owners with lenders and has provided over $750 million in loans to over 30,000 borrowers. Onto our Lendio Review!
Lendio claims to be “America’s largest small business loan marketplace” and is very similar in structure to Fundera by providing a matchmaking service for businesses and lenders.
Lendio itself doesn’t offer any type of loan service or product, instead, it matches businesses with lenders who provide a range of services.
Lendio has over 300 lenders on the platform including some very prominent industry names such as Kabbage, OnDeck, and BlueVine.
These are well-established lending platforms that Lendio simply connects eligible borrowers to and borrowers then compare lenders to determine which offer is best for their business.
Borrowers upload their personal and business information to be matched with lenders according to their eligibility criteria, making Lendio’s service fast, simple, and convenient.
Let’s take a closer look with our Lendio review.
- Lendio is a business funding matchmaker.
Since Lendio is a business funding matchmaker service it doesn’t have any eligibility requirements of its own, instead, it takes the data of applicants and matches them with lenders based on the lenders’ eligibility requirements.
Lendio is open to all types of businesses, so whatever your eligibility, you can sign up for the Lendio service and see who you are matched with.
However, having good business financials and creditworthiness will match you with better lenders and better rates. Lendio recommends the following as a minimum criterion for getting a good deal.
- Time In Business: 6 months
- Credit Score: 550
- Revenue: $10,000 per month
Some of the services that borrowers can get access to through Lendio include:
Eligible borrowers can gain access to installment loans offered by the lenders. With an installment loan, the loan amount is transferred to the borrower, then the borrower pays the loan back in installments. Repayments are generally made monthly.
Borrowers can also access short term loans. Short-term loans are usually more expensive than installment loans and do not carry interest, instead, they have a flat fee added on, depending on the loan.
For instance, if the fee rate is 1.5x and you borrow $10,000, then the total cost to you will be $15,000. Payments on short-term loans are usually made on a weekly basis and most lenders will directly deduct the payments from the borrower’s business account.
Lines of Credit
Borrowers can also get access to lines of credit. Lines of credit are suitable for businesses that require working capital from time to time.
With lines of credit, the amount is not paid to the borrowers in a lump sum, instead, an amount is approved and allocated to the borrower to be used when needed.
Interest doesn’t accrue on the line of credit if it isn’t used. Lines of credit are usually revolving lines which means they are replenished when they are paid back.
As apparent from their name, equipment loans are given to businesses so they can buy specific equipment. The equipment serves as collateral for the lender, which turns equipment loans into secured loans. Secured loans usually carry lower rates than unsecured loans.
Certain lenders that are approved with the Small Business Administration (SBA) can receive loans on easy terms that are backed by the SBA. SBA loans are granted to eligible borrowers. The downside to SBA loans is the long application waiting list and extensive paperwork requirements.
This doesn’t look like a particularly bad downside if you consider the advantage of receiving loans on easy terms and below-market rates. The SBA also has a paycheck protection program that is currently available to help businesses during the COVID-19 pandemic.
Lendio Application Process
Lendio’s application is simple taking borrowers 15 minutes to complete. Applicants simply need to establish an account on Lendio and then go through an application process.
During the application process, borrowers submit specific details about themselves such as personal identification, bank statements, the business’ registered office, and other documentation.
Lendio will use this information to match the applicant with lenders whose eligibility criteria the applicant meets.
Lendio may take up to 72 hours to match an applicant with lenders and once this is done, a Lendio representative will contact the applicant to explain the options, helping the applicant choose the best matching offer.
According to Lendio, over 65% of applicants find lenders and receive financing using Lendio’s matchmaking service. After the applicant chooses the lender they want to work with, Lendio will finalize the application, and once completed, the funds will be made available to the borrower.
Lendio Customer Service
Customer service reviews for Lendio have been exceedingly favorable stating the service is helpful, friendly, and protective of Lendio users.
You can contact Lendio by:
- Social media
The information available on the Lendio website is transparent and does not promise what it cannot deliver. There are no rates published on the site as Lendio itself does not charge any rates or fees to use the platform. Lenders are responsible for setting any rates and fees for each borrower.
Some Lendio alternatives are:
User reviews on sites like Better Business Bureau generally praise the site for its convenience and ease of service, however, some of the most common complaints about Lendio are financing delays and long waiting times, and some users have also complained of being left without any contact at all, even after they have supplied information. This may have something to do with increasing demand for lending service matchmaking.
Another common complaint is that users feel Lendio asks for a lot of documentation before they receive any information about the lenders. These are the problems that Lendio will have to review.
Lendio Pros and Cons
- Fast and convenient service
- A lot of lenders to choose from
- High borrowing limits
- No fees to use the site
- Won’t affect your credit score
- Long waiting time
- A lot of documentation is needed
Lendio Review: Final Thoughts
Lendio is an ideal solution for businesses wanting to find a variety of suitable lending options. Lendio can help businesses narrow down their choices by matching them with lenders they are eligible to receive loans from. The best thing about Lendio is that it is completely free to use. The Lendio matchmaking service saves you time and money by taking all the work out of sorting through the many lenders and financing options available.
Find Out Which Lenders You match With
Lendio is free and doesn’t affect your credit score
Enjoy our Lendio review?
You may also be interested in OnDeck Review.