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Lendio Review: Find the Right Business Loan

Lendio is an online marketplace for a variety of small business loans. Customers shop and compare offers across a range of loan products from various lenders. In addition to loans, Lendio offers free tools to send invoices and track expenses.

Lendio review
lendio
4.0
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Min. Credit Score
Min. Credit Score 560+
Loan Amount
Loan Amount Up to $500,000
Loan Repayment
Loan Repayment 1-2 years
TJ Porter
Written by:TJ Porter
Personal Finance Writer

Reviewed by: Sarah Brooks, Personal Finance Writer and Editor

Lendio is an easy-to-use online lender. It takes just 15 minutes to fill out their application and get connected to trustworthy small business lenders. Lendio’s small business loans are offered by more than 74 lending partners and there are more than 10 types of funding options available. With high loan amounts and low minimum credit score requirements, Lendio is a great choice for businesses of all types.

Summarized Ratings

This parameter considers loan terms, repayment optionality, and loan limits. For each financing arrangement offered, each of these features was evaluated using the five-point scoring system. Then, the various scores were aggregated and averaged to establish an overall loan features score.

Lendio gets a 3.7 for Loan Features. This above average score reflects a very broad offering of loan terms, fairly flexible loan limits, and accommodative repayment options.
Pros
Easy application
Wide variety of lenders
Funding within 24 hours of loan approval
Free tools to help with bookkeeping
Competitive offers
Loan and payment calculator
Cons
Fees are not uniform
Qualifications will vary

What Is Lendio?

Lendio is a business financing platform that acts as a one-stop shop for financing. Unlike other online lending companies, Lendio acts as a broker, connecting applicants with various lenders and products. Its network includes big names such as Bluevine, OnDeck, Kabbage, and Amex, to name a few.

Since its inception, Lendio boasts over 300,000 small business loans and $12+ billion funded. The company’s network includes 74+ lenders, with partners including PayPal, Bank of America, Kabbage, and LendingClub, to name a few.

Lendio Loan Features

As a marketplace that connects applications with loan providers, Lendio financial products include each of the following:

Business Line of Credit

Lines of credit act like credit cards, providing customers with a preset borrowing limit that can be used at any time. Borrowers can take out as little or as much as they need up to the credit limit. You are charged interest on the outstanding balance. As you repay the loan, the amount of available credit for you to borrow against increases.

Term Length

1-2 years

Repayment Period

Weekly or monthly

Apr Range

8.00%-24.00%

Min-max Amount

$100,000 - $500,000

Short Term Loan

Short term loans are lump sum loans with short repayment periods, typically 3-10 years. Customers borrow a set amount, paying interest on the initial loan’s size even as you pay down the balance. Short term loans can be used for any business expense, including inventory, payroll, marketing, or even a new business opportunity.

Term Length

3-10 Years

Repayment Period

Monthly

Apr Range

8.00% - 36.00%

Min-max Amount

$2,500-$500,000

Merchant Cash Advance

Merchant cash advances allow small businesses to borrow against future earnings. Collateral is not typically required, and funds can be made available in as little as 24 hours.

Term Length

Up to 2 years

Repayment Period

Daily percentage of credit card sales or percentage of total daily business sales

Apr Range

As low as 18%

Min-max Amount

$5,000-$200,000

SBA Loans

SBA loans are government backed loans and one of the more popular options for small businesses. These loans include Paycheck Protection Program (PPP) loans and SBA 7(a), 504, and SBA Express loans.

SBA loans are term loans that extend over longer periods. Borrowers receive one lump sum, paying back the loan over 10+ years.

Term Length

10-30 Years

Repayment Period

Monthly

Apr Range

Prime+

Min-max Amount

Up to $5,000,000

Equipment Financing Loan

Equipment financing loans are term loans used to purchase capital goods and equipment. These loans extend up to five years in duration, and the purchased equipment is used as collateral.

Term Length

1-5 Years

Repayment Period

Monthly

Apr Range

As low as 7.5%

Min-max Amount

$5,000-$5,000,000

Business Acquisition Loan

When you want to acquire another company, business acquisition loans can help. These loans let you purchase an existing company rather than starting one from the ground up. Business acquisition loans are designed to be paid back over multiple years, similar to a mortgage, and require borrowers to pay a 10-15% down payment.

Term Length

10-25 years

Repayment Period

Monthly

Apr Range

As low as 5.5%

Min-max Amount

$5,000-$5,000,000

Accounts Receivable Financing

When you need funds quicker than customers pay, accounts receivable financing can help. Accounts receivable financing (also known as factoring) pays you a portion of a customer’s outstanding invoice immediately. Once the customer pays, you receive the rest of the money less any fees.

Term Length

Up to 1 Year

Repayment Period

Weekly

Apr Range

As low as 3%

Min-max Amount

Up to 90% of receivables

Business Credit Card

One of the more well-known products, business credit cards act as a line of credit that you can draw on for business purchases. Business credit cards not only give you instant access to working capital, they also help build your business credit and track your expenses. While some cards do allow for cash advances, those typically come with a higher rate.

Term Length

Revolving

Repayment Period

Monthly

Apr Range

8%-24%

Min-max Amount

Varies by Lender

Commercial Mortgage

When you need to buy real estate for your business or upgrade your current property, commercial mortgages provide you with one-time funding for the purchase.

Term Length

20-25 years

Repayment Period

Monthly

Apr Range

4.25%-6.00%

Min-max Amount

$250,000-$5,000,000

Startup Loan

Startup loans help small businesses get off the ground without giving away equity to investors or borrowing from family or friends. To qualify for this loan, you’ll want to make sure your credit score is up to par, as this is what lenders will mostly look at.

Term Length

Up to 25 years

Repayment Period

Monthly

Apr Range

As little as 0%-17.00%

Min-max Amount

$500-$750,000

Business Term Loan

Business term loans are one of the most common small business loans. These loans provide one lump sum up front that is paid back over a set number of years.

Term Length

1-5 Years

Repayment Period

Monthly

Apr Range

As low as 6.00%

Min-max Amount

$5,000-$2,000,000

Lendio Interest Rates And Fees

Lendio is a marketplace for loans and not a direct lender. Because of this, fees, qualifications, and requirements may vary by lender.

Loan Type

Interest Rates

Invoice Factoring

8-24%

Term Loans

8-13%

Merchant Cash Advance

Starts at 18%

SBA Loans

5.50-8%

Equipment Financing

Starts at 7.5%

Business Acquisition

Starts at 5.5%

Accounts Receivable

Starts at 3%

Line of Credit

8-24%

Commercial Mortgage

4.25-6%

Startup Loan

Up to 17%

Business Term Loan

Starting from 6%

How To Qualify For A Lendio Loan

Since Lendio acts as a lender marketplace, the qualifications vary between products and lenders.

However, there are some general guidelines to work with:

  • The business should be operational for at least six months.
  • You should have a personal credit score of 550 at least.
  • Your business should generate at least $10,000 in monthly revenue.
Business Line of Credit Equipment Financing Business Credit Card Business Startup Loan

Minimum Credit Score

560

650 680 680

Minimum Annual Revenue

$50,000

$50,000 Varies by Lender Varies by Lender

Minimum Time In Business

6 months

12 months Long Enough to Establish Credit History 6 months

Lendio Application Process

Lendio’s selling point is its streamlined application process. By filling out a single, 15-minute application, you can get matched with more than 74 lenders who will submit competing loan offers. This makes it much easier for you to find the right loan for your small business needs.

You’ll have to provide some basic information about your business, starting with how much you need to borrow.

Lendio application process

Then, you’ll have to estimate your credit score. Lendio allows customers to check their eligibility without it impacting their credit.

lendingtree application proccess

You’ll also have to talk a bit about your business.

Lendio application process

Once you answer all of the questions and create a profile, you’ll be asked to upload business documents, such as business bank statements. This makes the underwriting process seamless because lenders will already have all of the information that they need to give you a loan offer.

Lendio application process

Once you submit the application, Lendio will send it to its lending partners and you’ll start getting competing offers from companies that want to lend to you.

Lendio Customer Support

Lendio offers multi-channel support, including phone, email, and social media on Facebook, Twitter, Instagram, and LinkedIn.

To help you through the loan process, Lendio assigns a personal funding manager to you when you apply. They’ll walk you through the various loan options and help you choose the one that’s right for you.

You can browse their resources and blog on their website, which includes articles that cover various small business topics of interest. Their FAQ page covers three main categories: types of loans, qualifying and applying, and small business basics.

Lendio Loan Reviews

Lendio has 4.8 out of 5 stars on Trustpilot and more than 19,000 reviews (89% of which are “excellent”). The majority of positive reviews highlight the professional customer service and holistic experience provided by Lendio. Several highlight the help provided by the funding manager in guiding them through the process.

Of the reviews listed on Trustpilot, the majority of complaints centered around PPP applications. As of May 2021, these were no longer available.

ConsumerAffairs gives Lendio 4 out of 5 stars, with nearly 500 reviews. Five-star reviews rave about the quick funding times and excellent customer service, specifically via the chat feature. Borrowers also rave about the variety of loan options offered by Lendio.

Like Trustpilot, negative reviews seem to be focused on PPP loans, which are no longer being offered.

Positive Reviews

Negative Reviews

Customer support and service

Expensive rates

User-friendly website

Difficulties with PPP loans (no longer offered)

Various types Of funding


Lendio Perks and Bonuses

Lendio is a great lender to work with because of its ability to match you with multiple lenders who want to compete with your business.

Flexibility

Lendio is a highly flexible lender, offering more than 10 types of loans to small business borrowers. Whether you have poor credit, are a startup company, have low annual revenues, or are in need of a larger loan amount, Lendio can provide you with the flexibility and specifications you need.

Transparency:

Lendio is quite transparent when it comes to the types and terms of the loans you can get. However, they are not super specific when it comes to rates and fees, as those will vary by lender.

Technology

Lendio is a technology company at heart, making it easy for you to apply for a loan and get matched to lenders. Once you get a loan, however, it’s up to the lender whether you’ll have access to features like an online account portal or automatic payments, so keep that in mind when you choose a loan offer.

Lendio also offers small businesses bookkeeping solutions, such as tools to send invoices, track expenses, and manage your business finances. You can sign up for this service for free without having to apply for a loan.

Final Thoughts

Lendio fills a unique niche in the financial lending space. With the number of lenders available online, going through individual applications can be a time-consuming ordeal. With one simple application, Lendio provides access to multiple lenders and products, allowing customers to select the solution best-suited for their situation.

Frequently Asked Questions (FAQ)

Is Lendio a legit company?

Yes, Lendio is a legit company for businesses to work with. It’s partnered with major lenders like American Express, and has a strong A+ rating from the Better Business Bureau. That means you can feel confident about using its service to find a small business loan.

Is Lendio SBA approved?

Lendio is not a direct lender, so it is not SBA-approved. However, the company does match borrowers to many different SBA-approved lenders. That means that you can apply for and get an SBA loan when you apply for a Lendio small business loan.

Is Lendio easy to get approved?

Lendio’s funding requirements are relatively low thanks to its ability to match you with more than 74 potential lenders. In general, though, the higher your credit score, the better rate you’ll receive on your loan.

Does Lendio check credit?

Yes, when you apply for a loan through Lendio, lenders will take a look at your credit score to determine whether you’re eligible to borrow money. You may still qualify for some types of loans if you have poor credit, but you will need to show strong business revenues to ensure the lender you can cover the payment.

TJ Porter

Written by: TJ Porter

Personal Finance Writer

I have in-depth experience in reviewing financial products such as savings accounts, credit cards, and brokerages, writing how-tos, and answering financial questions both simple and complicated.

More about me
Sarah Brooks

Reviewed by: Sarah Brooks

Personal Finance Writer and Editor

Sarah Brooks is a personal finance writer and editor with more than 10 years of experience. She specializes in personal and business loans, mortgages, auto loans, and credit cards.

More about me
Dr. JeFreda R. Brown

Fact Checked by: Dr. JeFreda R. Brown

DBA, CFEI and a highly respected expert in personal and business finance

Dr. JeFreda R. Brown is more than a financial consultant: she’s an avid teacher and subject matter expert who helps people—individuals and groups in a business setting—master the skills they need to achieve lasting financial wellbeing. As Founder and CEO of Xaris Financial Enterprises, it is her passion and life goal to help others develop and maintain financial wellness.

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