In a Nutshell
- 11 different loan types
- No minimum FICO score
- 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 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.
- 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.
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.
4100 Chapel Ridge Road
Lehi, UT 84043