Looking for the right financing options for your small business can take time and effort, with countless lenders and loan products to navigate. Amidst this complexity, Lendio emerges as a potential solution. Lendio is a business loan and financing platform that partners with over 75 lenders, providing small businesses with various choices in one place.
In this review, we will delve into the question that plagues many entrepreneurs: “Is Lendio a Scam?” We aim to provide an informative and objective analysis of Lendio’s services, loan terms, customer reviews, and eligibility criteria. By the end, you’ll understand whether Lendio is the right choice for your business funding needs.
Company: Lendio
Website: www.lendio.com
Owner: Brock Blake (founder/CEO)
Who is it for: business owners
P.S.
Before we continue with this review we just want to mention something that we thing is very important. Please make sure to ALWAYS do your own research and to compare different alternatives before making any decisions when it comes to financial services.
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Ok, with that being said, let´s continue with the Lendio review!
What is Lendio?
Lendio is a reputable business loan and financing platform catering to the needs of small businesses. As a reliable intermediary, Lendio connects entrepreneurs with various lenders, offering diverse loan products to suit their specific financial requirements.
Whether you need a term loan, line of credit, invoice financing, or merchant cash advance, Lendio makes the process easier by offering a centralized platform that caters to various funding choices.
With Lendio’s user-friendly online platform, applying for a business loan has always been challenging. Gone are the days of lengthy paperwork and dealing with each lender separately. Through Lendio’s intuitive interface, entrepreneurs can complete a single financing application, sparing valuable time and effort.
One of Lendio’s standout features is its extensive network of partnerships with more than 75 reputable lenders. These collaborations significantly increase the chances of securing your business’s most suitable funding option.
Each lender brings its unique loan terms, interest rates, and eligibility criteria to the table. Lendio’s platform acts as a bridge, effectively matching your business with the lenders whose offerings align with your needs.
Lendio’s core mission is empowering small businesses by simplifying the loan acquisition process. By offering multiple choices through a single online financing application, Lendio enhances accessibility to diverse funding opportunities that might otherwise be challenging for entrepreneurs to discover.
Through Lendio, business owners can efficiently compare loan terms and interest rates from various lenders, all in one place. This convenient comparison helps make informed decisions, ultimately securing their enterprise’s most favorable financial solution.
How Does Lendio Work?
Applying for a business loan through Lendio is a straightforward and hassle-free process. First, business owners need to access Lendio’s user-friendly online platform. Once on the website, they can initiate the application by providing essential business details. This typically includes information such as the annual revenue, the number of employees, and the purpose for seeking the loan.
Lendio will request specific documents from the business owner to ensure a smooth application process. These typically include three months of business bank statements and a completed marketplace application. The bank statements offer insights into the financial health and cash flow of the business, aiding the lenders in determining the most appropriate loan terms.
Lendio’s marketplace application is designed to gather essential information about the business, enabling the platform to match it with the most suitable lenders. The application form is easy to navigate and streamlines the entire loan application journey.
One of the significant advantages of using Lendio is its role as an intermediary that connects business owners with lenders most compatible with their specific needs. Once the marketplace application and bank statements are submitted, Lendio’s platform uses advanced algorithms to analyze the data.
These algorithms evaluate the business’s financial situation and creditworthiness, allowing Lendio to match applicants with a curated list of lenders that align with their requirements. This approach ensures that entrepreneurs can access multiple options tailored to their unique circumstances.
By employing precise matching techniques, Lendio enhances the likelihood of businesses finding lenders willing to work with them and offer favorable loan terms. The platform strives to simplify the loan search process, allowing entrepreneurs to focus on their core business operations confidently.
Lendio’s Loan Terms
Lendio’s loan terms are not set in stone, as they vary based on the individual qualifications of each business applicant. When entrepreneurs apply for a loan through Lendio’s platform, lenders consider several factors to determine the loan terms. These factors may include the business’s creditworthiness, financial history, revenue, and overall enterprise health.
Due to its adaptable loan terms, Lendio can accommodate a diverse array of businesses, from newly established startups to well-established enterprises. By customizing loan options to match the unique circumstances of each applicant, Lendio increases the likelihood of companies securing loans that align with their financial capacities.
Lendio typically requires specific documents from businesses seeking financing to facilitate the loan evaluation process. These documents offer crucial insights into the financial stability and performance of the enterprise. Among the key documents requested are three months of business bank statements.
The bank statements provide lenders with a clear understanding of the business’s cash flow, revenue, and expenditure patterns. By examining this financial data, lenders can gauge the repayment capacity of the company, which directly influences the loan terms offered.
By providing these documents, businesses can demonstrate their creditworthiness and financial viability, increasing their chances of qualifying for favorable loan terms. Lendio’s dedication to transparency in its document requirements ensures that applicants fully know the information needed to support their loan applications.
Services Offered By Lendio
Lendio provides a wide selection of loan products services designed to meet the distinctive financial requirements of small enterprises. These loans offer flexible and accessible financing options, empowering entrepreneurs to fuel growth, manage cash flow, and seize opportunities. Let’s explore each type of loan in detail:
Term loans
Term loans provided through Lendio present a reliable option for businesses looking to secure funds for specific purposes. These loans come with fixed interest rates and predetermined repayment terms, giving borrowers the advantage of knowing precisely what they owe monthly.
Entrepreneurs can utilize term loans for various business needs, such as expanding operations, purchasing equipment, or meeting working capital requirements. As a versatile funding option, term loans provide stability and predictability, making them popular among small businesses.
Invoice Financing
Invoice financing is a valuable option Lendio provides, tailored to help businesses manage their cash flow effectively. This financing solution allows entrepreneurs to access funds using their outstanding invoices as collateral. Rather than waiting for customers to settle their invoices, businesses can obtain immediate cash by selling these unpaid invoices to lenders at a discount.
This form of funding enables business owners to close the financial gap between providing products or services and getting paid, ensuring a continuous influx of money to handle operational costs and capitalize on expansion opportunities. Invoice financing is particularly beneficial for businesses dealing with long payment cycles or those experiencing seasonal fluctuations in revenue.
Lendio’s platform streamlines the process of securing invoice financing, making it an efficient and accessible option for small businesses. By reducing the wait time for payment, companies can maintain their operations and focus on strategic initiatives without worrying about late payments affecting their cash flow.
Furthermore, Lendio collaborates with a network of reputable lenders, enabling businesses to secure competitive terms and rates for their invoice financing needs. The platform’s approach empowers entrepreneurs to optimize their working capital and maintain financial stability, even during periods of irregular cash flow.
Merchant Cash Advances
Merchant cash advances, available through Lendio, offer a unique financing option for businesses seeking quick access to capital. This form of financing allows entrepreneurs to receive a lump sum upfront, which is repaid through a percentage of the business’s daily credit card sales.
One of the main benefits of opting for a merchant cash advance is its rapid and uncomplicated application procedure. Businesses can obtain funds quickly, often within 24 hours, making it an ideal solution for urgent financial needs or unexpected expenses.
Lendio’s platform ensures a seamless experience when applying for a merchant cash advance. The application is user-friendly, and the swift approval process enables businesses to get the funds they need promptly.
The merchant cash advance’s repayment system provides adaptability by synchronizing with the company’s day-to-day credit card sales. Companies repay a higher amount during busy periods, and during slower periods, the repayment amount adjusts accordingly. This dynamic arrangement allows businesses to manage repayments more effectively, ensuring they do not face undue strain on their cash flow.
Accounts Receivable Financing
Accounts Receivable Financing is a strategic funding solution that allows businesses to leverage their outstanding invoices as collateral to access immediate funds. The loan amount is directly tied to the value of these unpaid invoices.
This option enables businesses to bridge cash flow gaps, maintain smooth operations, and pursue growth initiatives. With a swift turnaround time of as soon as 24 hours and interest rates as low as 3%, accounts receivable financing offers a cost-effective and efficient financing option.
Business Line of Credit
A Business Line of Credit provides businesses with a revolving credit facility, allowing them to access funds up to a predetermined credit limit. The interest rates for business lines of credit range from 8% to 60%, allowing businesses to manage their working capital needs. Entrepreneurs can use this line of credit to address short-term financial needs, cover unexpected expenses, and maintain stability in cash flow.
SBA Loan (Small Business Administration Loan)
SBA loans are government-backed loans designed to support small businesses with competitive terms and favorable interest rates. Lendio offers SBA loans with loans of up to $5 million and a speed of funds ranging from 1 to 3 months. These loans are ideal for businesses seeking larger-scale financing to expand operations, purchase equipment, or acquire other companies.
Short-Term Loan
Short Term Loans provide businesses with quick access to funds, typically within 24 hours, and interest rates as low as 8%. As the name suggests, these loans are designed to be repaid over a shorter duration, making them suitable for businesses with specific immediate needs or opportunities.
Business Term Loan
Business Term Loans offer fixed loan amounts, ranging from $5,000 to $2 million, and competitive interest rates starting at 6%. These loans come with a predetermined repayment schedule, allowing businesses to plan their finances effectively and make consistent monthly payments.
Business Cash Advance
A Business Cash Advance offers entrepreneurs access to funds within 24 hours, with loan amounts ranging from $5,000 to $1 million. This financing option is repaid through a percentage of the business’s daily sales, providing flexibility in alignment with fluctuating revenue.
Equipment Financing
Equipment Financing allows businesses to secure funds for purchasing or leasing equipment critical to their operations. This financing opportunity supports businesses in enhancing productivity and keeping their equipment current, offering loan amounts from $5,000 to $5 million at attractive interest rates starting from 7.5%.
ERC Funding (Employee Retention Credit Funding)
Lendio offers specialized funding services to help small businesses file for the ERC credit on their tax return. This service supports businesses in claiming employee retention credits, ultimately contributing to their financial well-being.
Commercial Mortgage
Commercial Mortgages offer long-term financing for businesses seeking to purchase or refinance commercial property. This choice allows companies to secure their establishments and establish a stable groundwork for future expansion, with loan amounts spanning from $5,000 to $5 million or more and attractive interest rates starting at 4.5%.
Startup Loan
Startup Loans cater specifically to new businesses with loan amounts of up to $150,000 and interest rates of up to 31%. These loans provide early-stage companies with the necessary capital to kickstart their operations and establish a strong foundation for growth.
Business Acquisition Loan
Business Acquisition Loans assist entrepreneurs in acquiring existing businesses by providing funds for the purchase. This particular choice enables seamless business acquisitions and expansions by offering loan sums that span from $5,000 to $5 million, coupled with attractive interest rates starting at 5.5%
Business Credit Card
Business Credit Cards offer entrepreneurs a flexible and convenient financing solution for various business expenses. With credit limits of up to $150,000 and interest rates of up to 31%, these cards enable businesses to manage day-to-day expenses efficiently.
Lendio’s comprehensive range of loan products ensures businesses can find the right financing option to suit their specific needs and objectives. By providing accessible and efficient funding solutions, Lendio continues to empower small businesses to thrive and succeed in today’s competitive landscape.
Features of Lendio
Lendio offers many features that make it a standout platform for small businesses seeking financing. Here are the key elements that set Lendio apart:
Convenient Single Online Application Process
Lendio’s user-friendly platform allows entrepreneurs to apply for loans in just minutes, all from the comfort of their own computer or mobile device. Gone are the days of tedious paperwork and lengthy application processes. With Lendio, businesses can complete a single online application and have their information reviewed by multiple lenders, streamlining the entire loan application experience.
Rate Comparison from Multiple Lenders
One of Lendio’s major advantages is its partnership with over 75 lenders. This extensive network enables businesses to compare rates and terms from various lenders, empowering them to decide on the best financing option for their needs. By having access to multiple offers, businesses can secure the most favorable terms and interest rates available in the market.
Easy-to-Use Platform and Personalized Customer Service
Lendio understands that not all small business owners are financial experts, so its platform is designed with ease of use. Even entrepreneurs with limited financial experience can navigate the venue effortlessly. Moreover, Lendio offers personalized customer service to guide applicants through the loan process. Whether businesses have questions about the application or need assistance choosing the right loan product, Lendio’s dedicated support representatives assist and ensure a smooth experience.
By embracing these features, Lendio ensures that small businesses can access financing solutions that align perfectly with their goals and requirements. The platform’s commitment to simplicity, transparency, and exceptional customer service makes it a trusted ally for businesses of all sizes.
Lendio Reviews Online from Customers
Lendio’s reputation can be gauged through its customers’ valuable feedback and ratings on various online review platforms. Let’s take a closer look at what customers have to say about Lendio:
Trustpilot: Lendio’s Trustpilot page showcases an impressive average rating of 4.8 stars out of 5, derived from a vast collection of thousands of reviews. Customers often praise Lendio for its seamless online application process, quick funding, and the variety of loan options available. Positive feedback highlights Lendio’s commitment to delivering financing solutions tailored to individual business needs.
ConsumerAffairs: Lendio has an average rating of 3.9 out of 5 stars on ConsumerAffairs, derived from the feedback of more than 200 customers who have shared their reviews. Customers appreciate the ease of use and the platform’s ability to connect them with multiple lenders. Some users also commend the personalized customer service provided by Lendio’s representatives.
BBB (Better Business Bureau) Reviews: Lendio maintains an A+ rating with the Better Business Bureau, demonstrating its dedication to maintaining high customer service standards and resolving issues promptly. This rating reflects Lendio’s commitment to transparency and positive customer interactions. However, there are 163 complaints filed in the last 3 years… Click here for details (opens in new window)
Positive and Negative Aspects of Customer Reviews
Positive Aspects
- Efficient and User-Friendly: Customers appreciate the straightforward and user-friendly online application process, which makes obtaining financing hassle-free.
- Rates: Positive feedback often highlights the ability to compare rates from multiple lenders, ensuring businesses secure favorable terms.
- Personalized Customer Service: Many customers praise Lendio’s dedicated support representatives who guide throughout the loan application process.
- Quick Funding: Customers value the speed of fund disbursement, with many receiving funds within 24 hours of approval.
- Variety of Loan Options: The availability of various loan products allows businesses to find the best fit for their specific needs.
Negative Aspects
- High-Interest Rates from Some Lenders: A few customers have expressed concerns about the high-interest rates offered by certain lenders in the Lendio marketplace.
- Customer Service Issues: While most customers have positive experiences with Lendio’s customer service, a few have reported challenges in communication or resolution of issues.
It is important to note that customer experiences can vary. While many have positively interacted with Lendio, others may have faced challenges. Lendio continuously strives to address customer feedback and improve its services to meet the diverse needs of businesses.
Eligibility Criteria
To qualify for a loan through Lendio, businesses need to meet the following requirements:
U.S. Citizenship or Permanent Residency: Applicants must be either U.S. citizens or permanent residents to be eligible for financing through Lendio.
Minimum Business Age: The business should have been operational for at least 6 months. This criterion ensures that Lendio considers firms with a track record of operation.
Minimum Credit Score: Lendio requires a credit score of at least 550 for loan applicants. The assessment of creditworthiness heavily relies on a person’s credit score.
Demonstrated Cash Flow: Applicants must demonstrate sufficient cash flow to repay the loan. Lendio may analyze bank statements or financial records to assess the business’s financial health.
Customer Service
Lendio provides a comprehensive range of customer service options to assist applicants throughout the loan process:
Phone Support: Customers can contact Lendio’s customer support team for personalized assistance and guidance on loan applications and related queries.
Email Support: Queries and inquiries can be addressed through email, allowing customers to receive timely responses to their questions.
Dedicated Support Representative: Lendio assigns dedicated support representatives to work closely with applicants. These representatives offer expert advice, address concerns, and guide businesses through the loan application process.
Knowledge Base and Help Center: Lendio’s knowledge base and help center serve as valuable resources for applicants. They offer a collection of articles, frequently asked questions (FAQs), and informative content to help businesses navigate the loan process independently.
Videos & Tutorials: Lendio provides informative videos and tutorials to guide users through the loan application process, offering step-by-step instructions and valuable tips.
Company Blog: Lendio’s blog is a repository of insights, tips, and industry updates. The blog educates applicants about different loan options, financing strategies, and business-related topics.
Social Media Presence: Lendio engages with customers through its social media platforms. Encouraging communication, facilitating direct interactions, and providing up-to-date information on the latest news and offers are fostered by this approach.
Lendio’s Fees
Lendio charges a fee to businesses that use its platform but does not directly charge borrowers. The fee structure for using Lendio’s platform varies based on the lender matched with the applicant. It is important to note that the fee structure and rates are determined by the partner lenders, not Lendio itself.
It is crucial for borrowers to carefully review and compare offers from different lenders to understand the fee structure and terms associated with each loan. While Lendio provides access to multiple lenders, businesses should know that the fees may vary depending on the lender chosen.
Is Lendio a Scam?
Lendio is a legitimate business loan and financing platform. It is not a scam but a reputable platform that has successfully assisted numerous small businesses in securing financing solutions.
Any concerns raised in customer reviews are taken seriously by Lendio. The platform continually strives to address feedback and improve its services to ensure customer satisfaction and foster transparency.
Alternatives to Lendio
While Lendio is a popular option, there are several alternative online lenders to consider based on specific business needs and preferences. Our absolute best recommendation is ERC Straightline but there are other alternatives as well, like for example:
- Kabbage: Kabbage is known for its quick and easy application process, making it suitable for businesses with limited credit history seeking prompt funding.
- OnDeck: OnDeck offers competitive rates and fast funding, making it an ideal choice for businesses needing immediate financing solutions.
- Fundbox: Fundbox provides flexible lines of credit to small businesses, with an easy application process and quick access to funds.
- Square Capital: Square Capital offers loans to businesses that use Square’s point-of-sale system, providing a straightforward and accessible financing option.
How to Choose the Right Business Loan for Your Needs?
Businesses should consider various factors when choosing a business loan to ensure it aligns with their specific needs and financial goals. Some key tips include:
Loan Amount: Evaluate the required loan amount based on your business’s funding needs and intended use.
Repayment Terms: Carefully review and assess the loan’s repayment terms, including the duration and frequency of repayments, to ensure it fits your financial capabilities.
Interest Rates and Fees: Compare interest rates and fees from different lenders to identify the most cost-effective option.
Eligibility Criteria: Ensure your business meets the lender’s eligibility requirements to increase the chances of loan approval.
Customer Support: Consider the level of customer service the lender offers, as personalized support can be crucial throughout the loan process.
Tips for Avoiding Scams When Applying for a Business Loan
Applying for a business loan can involve risks, and businesses need to stay vigilant and cautious to avoid potential scams. Some key tips include:
Research the Lender: Conduct thorough research on the lender’s reputation, customer reviews, and ratings to ensure credibility and legitimacy.
Watch for Red Flags: Be cautious of lenders promising guaranteed approvals or requiring upfront fees before providing loan information.
Verify Contact Information: Ensure the lender’s contact information, such as phone numbers and addresses, is legitimate and verifiable.
Read the Fine Print: Carefully review all terms and conditions of the loan agreement to understand the full cost of borrowing and any hidden fees.
Seek Professional Advice: If uncertain or hesitant about a loan offer, seek advice from financial experts or business advisors to make informed decisions.
FAQs
Is Lendio SBA Approved?
Absolutely! Lendio proudly holds the distinction of being an SBA-approved lender. This recognition positions Lendio as a valuable resource for businesses seeking financial support through SBA loans.
With the support of the SBA, businesses have the advantage of accessing loans with reduced interest rates and more adaptable repayment terms, rendering it an appealing choice compared to traditional business loans.
Lendio’s SBA approval further solidifies its credibility as a trusted and reliable platform for securing government-guaranteed loans and empowering businesses to thrive.
Does Lendio Offer Grants?
While Lendio is a reputable business loan marketplace, it does not offer grants. Grants are free funds from governmental or nonprofit organizations to support businesses or initiatives. Lendio’s primary focus is facilitating business loans and financing options through its extensive network of lenders.
Although grants are not part of Lendio’s offerings, businesses can explore the diverse loan products available on the platform to identify the most suitable financing solution for their unique requirements.
Does Lendio affect credit scores?
Lendio utilizes a soft credit pull during loan applications, ensuring no impact on your credit score. However, a hard credit pull is conducted upon loan approval, leading to a minor credit score adjustment. For peace of mind, you can request a soft credit pull from Lendio before applying, evaluating your eligibility without affecting your score.
Conclusion
In conclusion, Lendio is a reputable business loan and financing platform that partners with over 75 lenders to offer small businesses a wide range of loan options. From term loans to lines of credit, invoice financing to merchant cash advances, Lendio caters to diverse financing needs.
While the platform’s single online application and personalized customer service are commendable, businesses should be cautious of potential higher interest rates from some lenders. Customer reviews highlight positive and negative experiences, underlining the importance of conducting thorough research before making borrowing decisions.
As businesses venture into the loan process, it is crucial to stay informed, compare options, and consider factors like loan terms, rates, and eligibility to secure the best financing solution for their unique needs.
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I hope you found this short review on Lendio to be helpful and that you now know that it´s not a scam but a legit company, at least that is our opinion. If you have used any of their services then please share your experience in the comment section below!
I wish you success!
Michael, founder of Gold Retired
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