By: Kevin Mercadante
|Loan types||Small business loans|
|Loan amount||$1,000 to $2 million|
|Repayment Terms||1 month to 25 years|
|Top Pro||At least 10 different loan types|
|Top Con||Some loans may require further documentation|
|Best for||Small businesses seeking multiple loans|
Lendio is an online small business loan aggregator that brings small business owners and small business lenders together on one platform. The site is free to use, and offers at least ten distinct loan programs, for every conceivable business need, from business acquisition to funding for commercial real estate. This increases the likelihood that you will be able to find both a lender and a specific loan program that will work in your situation.
Depending on your business and your credit profile, you may be able to obtain certain loans with interest rates starting in single digits. Other loan programs allow you to get credit using your cash flow or accounts receivable.
Lendio is not a direct lender, but a platform where you can be directed to the services of various lenders, based on your borrower profile. At least one of their loan programs allows you to obtain a loan if you are in business for as little as three months (note however that there are higher personal requirements for new or recently formed businesses).
The company is rated A+ (on a scale of A+ to F) with the Better Business Bureau, and 9.5 (out of 10) with TrustPilot. The site has also been featured on Forbes, CNBC and Entrepreneur.
The process starts with you completing a questionnaire that will match you up with the right lender and loan program. From there you will complete a more detailed application for the direct lender. The exact process will vary from one lender to another. The loan process takes between two days and two weeks with most lenders.
When you inquire about a loan on Lendio, the site will perform a soft credit pull, so that your credit score won't be negatively affected by the inquiry. Once you're paired up with an actual lender, a formal credit report will be pulled, but by then you'll be in the application process.
Basic requirements to get a business loan through Lendio include:
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:
Because Lendio is a business loan aggregator, they offer access to at least 10 different types of loans, which are summarized below:
|LOAN TYPE||LOAN AMOUNT||APR||TERMS|
|Business Credit Cards||$100 - $50,000||0% to 25%||1 to 2 month|
|Equipment Leasing||$20k - $1 million||8% to 25%||2 to 10 years|
|ACH Cash Flow Loans||$1k - $200k||Factor 1.2 to 1.8||6 to 12 months|
|Line of Credit||$2k - $100k||8% to 25%||1 to 6 months|
|Merchant Cash Advance (MCA)||$1k - $250k||Factor 1.2 to 1.8||3 to 12 months|
|Term Loan||$15k - $500k||7% to 30%||1 to 5 years|
|Commercial Real Estate||$150k or more||4% to 8%||20 to 25 years|
|Factoring (AR/PO)||Up to 85% of AR||Fee 8% to 25%||1 to 3 months|
|Large SBA||$200k or more||Less than 10%||7 or more years|
|Express SBA||$1k - $100k||7% to 15%||1 to 5 years|
Lendio does advise that certain business types are considered "restricted industries" that will have difficulty getting a loan through the platform. Those businesses include hunting, fishing & forestry, auto dealers, gambling, legal services, non-profits, mining, commercial real estate and insurance businesses.
Your information on Lendio is protected by the same 256-bit encryption that banks use, and includes auditing, back-ups and encrypted login information.
Loan terms range anywhere from one month to 25 years, depending on the type of loan you need and are approved for. With some loans, repayment will be accomplished through a percentage of your monthly business receipts being automatically transferred to the lender on a daily basis. With others, you will have scheduled monthly payments.
Fees will be determined by each individual lender. Interest rates will be within the ranges appearing on the chart above for each loan type. Some loans do impose a prepayment penalty, while others do not.
Lendio can be contacted by phone at either their South Jordan, Utah, corporate office, or at their New York office. They can also be contacted though the social media, including Facebook, Twitter, Google+ and Linkedin. Email contact is available directly through the company website.
The company also has a comprehensive FAQ page that will answer most of your questions about the loan process, and about doing business with Lendio. The company also has a blog that provides real world examples of how Lendio loans have benefited small businesses.
Lendio could be the perfect platform for your small business since it represents an entire marketplace for lenders of all kinds. You can take one loan type with one lender, then another loan with a different lender for a different purpose. This will provide you with an ongoing source of financing as your business needs require.
10235 South Jordan Gateway
South Jordan, UT 84095