Lendio Review

ByCaroline BantonNov. 15, 2020

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In a Nutshell

Lendio is an online small business loan aggregator that brings business owners and lenders together on one platform. The site is free to use and offers 11 distinct loan programs for every business need, from business acquisition to commercial real estate. The variety of loans offered increase the likelihood that you will find both a lender and a specific loan that suits your circumstances.

pros

  • 11 different loan types
  • No minimum FICO score

cons

  • Some loans require extra documentation
  • Prepayment penalties vary

According to the company, it has facilitated over 200,000 small business loans for $10 billion in total funding—including $8 billion in PPP loan approvals as part of government COVID-19 relief.

Lendio Lendio Visit Site

Lendio at a Glance

Loan amount $5,000 - $2 million
Minimum monthly revenue Depends on the lender
Age of business Depends on the lender
Minimum credit score Depends on the lender
Repayment terms 1 - 5 years
Time until funding As little as 24 hours
Direct lender or marketplace Marketplace

Why Choose Lendio?

Lendio is not a direct lender. It is a platform that directs you to the services of various lenders based on your borrower profile, not just your profits. At least one of Lendio’s loan programs allows you to obtain a loan if you have been in business for as little as three months (however, there are stricter personal requirements for new or recently formed businesses). Also, some options have low rates.

Lendio aims to make small business loans as simple as possible. The platform can connect you to over 75 leading lenders. Lendio strives for ease with a 15-minute application and a proprietary algorithm that finds your quotes. The company is rated A+ (on a scale of A+ to F) by the Better Business Bureau, and 9.5 (out of 10) with TrustPilot. Lendio considers American small businesses to be the backbone of the American economy and provides $1 billion in funding for small businesses.

Loan Features 

  • Terms: 1 to 5 years for traditional business loans
  • Eleven different business loan types
  • Loan amount: $5,000 to $2 million
  • Funding in as little as a 24 hours
  • APR varies according to lender and type of loan
  • Prepayment penalties vary with loan program/lender
  • No minimum FICO score
  • No minimum time in business 

Loan Application Process

To start the process, you must complete a questionnaire. The lender you are ultimately matched with will depend on your answers. Once you are matched with a lender and loan program, you will complete a more detailed application for the direct lender. The exact loan process varies from one lender to another in terms of time, but it typically takes between two days and two weeks.

The Lendio site performs a soft credit pull when you inquire about a loan. However, your credit score won't be negatively affected. Once you are matched with a lender, a formal credit report will be pulled, at which time you are well on your way in the application process.

The basic requirements for a business loan with Lendio include:

  • Gross revenue averaging consistently $10,000 for at least six months
  • Minimum of 12 months in business (less for certain loan programs), but generally at least two years in order to qualify for the best loans and pricing
  • No minimum credit score
  • No bankruptcies in the past three years
  • A business bank account 
  • You must be current on your mortgage or rent payment
  • The business must be based in the United States

The specific documentation required to get a business loan through Lendio varies from one lender to another and also depends on the type of loan being applied for. Typically, an application will require at least the following:

  • A signed loan application
  • Six months of current business bank account statements
  • Mortgage or landlord verification

Because Lendio is a business loan aggregator, it offers access to 11 different types of loans:

Loan Type Loan Amount APR Terms
Business Credit Cards Depends on the provider Depends on the provider Depends on the provider
Equipment Financing $5,000 - $5 million As low as 7.5% 1 to 5 years
Startup Loan $500 - $750,000 As low as 0-17% Up to 25 years
Business Line of Credit $5k - $500k 8% to 24% 1 to 2 years
Merchant Cash Advance (MCA) $5,000 - $200,000 As low as 18% Up to 2 years
Short-Term Loan $2,500 - $500,000 As low as 8% 1 to 3 years
Business Term Loan $5,000 to $2 million As low as 6% 1 to 5 years
Commercial Mortgage $250,000 to $5 million As low as 4.25% to 6% 20 to 25 years
Accounts Receivable Up to 80% of receivables As low as 5% Up to 1 year
SBA Loan Up to $500,000 Prime+ 10 to 30 years
Business Acquisition $5,000 to $5 million As low as 5.5% Revolving or 10 to 25 years

Lendio does advise that certain business types, those considered "restricted industries," may experience difficulty getting a loan through the platform. Those businesses include hunting, fishing and forestry, auto dealers, gambling, legal services, non-profits, mining, commercial real estate, and insurance.

Where data security is concerned, your information on Lendio is protected by the same 256-bit encryption that banks use and includes auditing, back-ups, and encrypted login information.

Lendio Costs: Repayment Terms

Loan terms range from one month to 25 years, depending on the type of loan you need and are approved for. Fees are determined by each individual lender, and interest rates will be within the ranges appearing on the chart above for each loan type. Some loans do impose a prepayment penalty.

With some loans, repayment occurs when a percentage of your monthly business receipts are automatically transferred to the lender on a daily basis. Others will call for scheduled monthly payments.

Help & Support 

Lendio can be contacted by phone at either the South Jordan, Utah, or New York office. You can also contact Lendio through social media, including Facebook, Twitter, and Linkedin. Email contact is available directly through the company website.

Lendio has a comprehensive FAQ page that will answer most of your questions on its loan process. The company also has a blog that provides real world examples of how Lendio loans have benefited small businesses.

Summary

Lendio could be the perfect platform for your small business since it represents an entire marketplace of all types of lenders. You can take out one loan with one lender and another type of loan with a different lender. Lendio provides you with an ongoing source of financing as your business grows.

Physical Address 

Lendio

4100 Chapel Ridge Road

Suite 500

Lehi, UT 84043

Lendio customer testimonials

ExcellentReviews 8,374
TrustPilot is the world’s most powerful review platform, free and open to all.
Excellent
91%
Great
6%
Average
1%
Poor
1%
Bad
1%
  • author
    Aleksandar Manojlovic
    5 hours ago
    by far the best company for all kinds…

    by far the best company for all kinds of services, as the first friendly staff and very kind workers, it is a very great privilege to work with you. the best among the best !!!

    ...

  • author
    Ryan Young
    Nov 19, 2020
    stay away

    Filled out an application with Lendio. The rep that walked through everything with me was helpful, and honest about prospects, and identified things that would help or harm my chances, and different financing types best suited for my needs. After the initial call, and a promise to hear back within 48 hours, there was no cantact for about 2 weeks. After that time, I received over 50 phone calls over the course of a week from generic name lenders, most of which after research are operated out of residential addresses. I was finally able to grill one of them enough to find that they got a file opened via lendio, and were following up. I've gotten it down to 2-3 bogus calls a day left, and am getting those off my back too, but its been a solidly terrible experience, and not even any real financing offers to show for it.

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  • author
    Rod Davis
    Nov 17, 2020
    Professional and very prompt

    Professional and very prompt. We received funding in a very short period of time w limited paperwork. Our Agent Chase was polite and straight forward.

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  • author
    RP
    Nov 16, 2020
    Kade Simmons with Lendio..terrible (and costly) experience

    Our representative, Kade Simmons (Sr. Director at Lendio), blatantly lied about the terms and conditions of our loan, urged us to sign the contract as quickly as possible (supposedly at the insistence of the lender) and then later refused to return any of our calls or messages after we discovered we had been completely lied to and misled. Throughout the entire process, Kade clearly and repeatedly assured us that the loan could be paid off early without penalty, which he knew was our number one prerequisite. We don't mind taking on the occasional high interest loan as long as there is no early payoff penalty since our monthly cashflow is high and we are always able to pay them off quickly. However, instead of the 15-month ~20% interest rate loan we were quoted, we instead ended up with a non-interest-bearing loan with a 35% fixed-sum fee to be paid in full no matter when the loan is paid off. We have received and quickly paid off several six-figure loans over the years, but this was our first time going through an intermediary such as Lendio. Unfortunately for us, we foolishly assumed that Lendio was acting in our best interests and, as a result, didn't vet the details as thoroughly as we normally would have. Lesson learned.

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  • author
    Whats up Oliver E
    Nov 16, 2020
    Thankful for everything

    Thankful for everything

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