Lendio: Reviews and Ratings
A quick letter to small business owners: You are the backbone of this country. You make the American Dream a reality. Your value to America is immeasurable. It is a challenging life, however, as even the hardest-working and ingenious entrepreneurs hit a wall. It is normal and encouraged to take full advantage of business loans or business credit to fuel growth, manage cash flow, or seize a golden opportunity. If you are considering getting a quick boost for your business, there’s a good chance you are overwhelmed by all the options out there. Fret not, valued entrepreneur, you’re in the right place!
If you’re running a small business, you’re likely juggling a million things at once. You’re not gonna want to add on having to research all these different lenders to your stack of responsibilities. That’s where Lendio can seriously come in handy. They match you with the perfect lenders within their network to help you with your small business goals.
Let’s make one thing very clear, however. While Lendio will do much of the tedious matchmaking work for you, there is no substitute for knowledge. Performing holistic research on your own on the small business lending scene will complement the heavy lifting of L:endio very effectively. Think of this article as your friendly guide, helping you gather the information you need to make the perfect choice, with Lendio’s help. Let’s get started!
- Loan amounts up to $100,000
- Custom Terms: Repayment periods from 12 to 60 months with fast 48-hour approvals.
- Trusted Expertise: Recognized for ethical lending and innovative financial solutions.
Lendio: A Brief History and What They Offer
Lendio was founded in 2011. Recognizing a need in the market for a more streamlined connection between small business borrowers and lenders, they set out to revolutionize the small business lending scene.
Lendio is essentially a matchmaker for lenders and small business owners. Instead of you having to approach dozens of individual lenders, filling out multiple loan application forms and wasting a whole lot of time, Lendio will act as a central hub. You fill out one application, and they will run your data through their network to pull the most suitable lenders for your needs.
Here’s an overview of the core services that Lendio offers:
- Business Term Loans: These are versatile fixed payment loans that can be used for a variety of needs, including acquiring lump capital or purchasing equipment.
- SBA Loans: Lendio is able to connect you with the Small Business Administration (SBA) loan programs,which can give business owners more favorable loan terms. These include popular options like the SBA 7(a) and SBA 504 loans.
- Business Lines of Credit: This is a flexible way to access lent funds. You can pay back when you want, and only pay interest on the amount you drew.
- Equipment Financing: Specifically designed to finance the purchase of new or used equipment.
- Commercial Mortgage: For when you’re looking to purchase or refinance commercial real estate.
- Invoice Factoring: A way to get immediate cash flow by selling your outstanding invoices to a factoring company.
- Merchant Cash Advance: An advance on your future credit card sales. Repayment is typically a percentage of your daily or weekly sales.
- Startup Loans: Financing options for new businesses that may have limited operating history.
- Paycheck Protection Program (PPP) Assistance: While the PPP program has concluded, Lendio played a significant role in helping small business owners navigate the application process during its availability.
Lendio is effective because they centralize the lending process, to save you a great amount of time and energy in the borrowing process.
Lendtly.com
- Direct Lending Excellence: Matches you with the best loans.
- Loans ranging from $2,500 to $100,000
- Flexible terms: 3 to 120 months, 24 hours post-approval
- Same day approval
Pros and Cons of Using Lendio
Lendio has things it’s good at and things it may lag behind at, just like any service. Here’s a detailed look at how these two areas break down:
Pros:
- Time Savings: By requiring just one single application and taking it from there, Lendio can save you a lot of headaches.
- A Wide Network of Lenders: Lendio has a wide array of lenders within their network. This asset can potentially link you up with lenders you may never have connected with otherwise.
- Loan Offer Comparison: Lendio’s portal allows you to compare key loan terms, such as interest rates, repayment schedules, and fees, side-by-side. This is very helpful when picking the perfect lender.
- Potentially Faster Funding: With a faster process comes faster funding. Lendo is successful for the most part in getting customers their money faster than other sources.
- Customer Support: Lendio has an effective customer support system, helping guide and direct its customers.
- Loan Variety: Whether you need a term loan, a line of credit, equipment financing, or other financing options, Lendio will likely find what you’re looking for.
Cons:
- Not a Direct Lender: Remember that Lendio themselves are not a direct lender. They may match you with one, but they have no ultimate say over the terms that you ultimately decide on.
- Potential for Fees: Lendio does not charge direct fees, but the lenders they connect you with may. So, whichever lender you are considering, review their terms carefully; they may have fees you didn’t know about, such as origination fees, late fees, etc.
- Varying Loan Terms and Rates: There will be variance in loan terms, interest rates, and eligibility requirements among lenders that you find through Lendio.
- Credit Report Impact: Applying for multiple loans, even through a marketplace like Lendio, could have an impact on your credit report due to multiple credit inquiries.
- Customer Service Experiences: Lendio is not responsible for the customer service experience you have with the lender they connect you with.
- Transparency Concerns: There is concern over the transparency of some loan terms from certain customers. Remember to always stay vigilant and ask questions.
DebtCarePlus
- Competitive APR: 3.49% to 35.99% for loans $1,000 to $100,000.
- Program: 24-36 months, 100% service guaranteed.
- BBB A Rating: Trusted online marketplace.
What The People Say: Comments, Ratings, and Reviews
Existing customer accounts are invaluable when predicting your own experience with a service. The following is a set of customer comments from trustworthy sites that’ll help us form an opinion on Lendio:
Better Business Bureau (BBB)
Lendio has an A + rating and is unaccredited on the BBB. You’ll find both positive and negative reviews, often highlighting aspects like ease of use and customer support on the positive side, and occasional issues with communication or loan terms on the negative.
- Positive Comment: “I applied for a loan and was not given what I believe is reasonable feedback on who was consulted and reasons for denial at the time. [Lendio] was difficult to get ahold of and would not provide any details without being pressured or through threat of a complaint. I put in a formal complaint weeks ago with no response and they continued to send me emails even after doing this. We have received dozens of letters for applications not completed in the same date range we applied to Lendio leading us to be worried our application was pushed to their more predatory loan companies.”
- Negative Comment: “Lendio representatives continue to call me, text me, leave me voicemails, ask me to submit documents urgently, then they never get back to me. I’m assuming it’s because I was denied, which is fine, but they never tell me that or bother to update me. That is unprofessional, and annoying. Then, a few months later they do the same exact routine over and over and over again. … They call me at ALL hours of the day and night from different phone numbers, then they text me and email me. When I block their number, they keep on calling me from another number, and sometimes it’s the same person contacting me from all of the phone numbers.“
Trustpilot
Lendio currently holds an excellent 4.7/5 based on over 21,000 customer reviews. Comments are overwhelmingly positive, with users praising the efficiency and variety of financing options, while some express frustration with the outcome of their loan application or specific interactions with lenders.
- Positive Comment: “I had a wonderful experience with the person who guided us. He was clear with his instructions and guided us through the process of applying for the loan. We are grateful.“
- Negative Comment: “They may ignore direct communication, but they respond quickly to online complaints. I applied for a PPP loan with Lendio in late January, and they never followed up until I posted a complaint online. Communication was lacking throughout the process.“
Google Reviews
Checking Google Reviews offers a similar perspective, as shown by Lendio’s 4.3/5 rating on the platform. There is plenty of praise for the wide offerings and Lendio’s service.
- Positive Comment: “The process was simple but thorough. It was easy to get a loan through Lendio, and the representative was very helpful throughout. I appreciated the quick responses and the variety of options presented to me.”
- Negative Comment: “Tried contacting customer service several times about my loan package but always got voicemail. Left messages but no one bothered to return my calls. It was hard to get hold of their customer service, and I needed updates for my client’s PPP status.“
Lendio has great reviews and positive comments from customers, with particular praise on the speed and ease of the platform. The company’s A+ BBB score exemplifies their commitment to ethical business practices. Some customers voice complaints about frequent follow up calls and aggressive sales tactics from Lendio representatives. Overall, most reviews highlight Lendio’s helpful support and efficient process, making it a reliable choice for commercial use and small business funding.
An important disclaimer when exploring reviews is that many people will leave “troll” reviews or leave reviews when they are emotional. Despite this, the empirical data is very useful, and it points to Lendio being a great service, for the most part.
- Eligibility: Minimum $7,500 debt, no minimum credit score required.
- Program: 24-48 months, no upfront fees.
- Experience: Decades of trusted services.
Lendio vs. The Competition: Comparing Different Financing Options
In case you were unaware, Lendio isnt the only marketplace style lender connecter for small businesses out there. It’s helpful to compare these competing services to understand what each of them emphasize, what they excel at, etc. This will help you understand Lendio contextually, and perhaps realize there is a better option for you out there.
Here’s a breakdown of Lendio compared to three competitors.:
| Feature | Lendio | Fundbox | Wells Fargo | Funding Circle |
| Services Offered | Loan marketplace: term loans, lines of credit, SBA, equipment, merchant cash advance, invoice factoring, more | Direct online lender: business line of credit | Traditional bank: term loans, lines of credit, SBA, equipment, commercial real estate, more | Direct online lender: term loans, lines of credit, SBA 7(a) loans |
| Speed of Funding | Varies by lender; as fast as 1–2 days for some products | Approval in minutes, funding as soon as the next business day | Typically 1–2 weeks for approval/funding; faster for some lines of credit | Approval in as little as 24 hours, funding within 48 hours for some loans |
| Application Process | Single online application, soft credit check, matches you to lenders | Simple online app, connect bank/accounting software, soft credit pull | In-person or online, more documentation, hard credit pull, may require a branch visit | Online application, soft credit pull, direct account manager contact |
| Loan Terms & Rates | Terms: 6 months–10 years; Rates: ~6%–36% (varies by lender/product) | Terms: 12 or 24 weeks; Rates: from 4.66% of draw amount (factor rate, not APR) | Terms: up to 25 years; Rates: Prime + 1.75% and up, SBA as low as Prime + 1.75% | Terms: 6 months–10 years; Rates: from 7.49% (term loans), SBA from 11.25% |
| Credit Requirements | Flexible options for fair/bad credit, startups, and established businesses | Low: 500+ credit score, 3+ months in business, $25K+ revenue | Strong: typically 680+ FICO, 2+ years in business, higher revenue for most loans | Fair: 650+ FICO, 2+ years in business, $50K+ revenue |
| Fees | Varies by lender; may include origination, late, or prepayment fees | Weekly fees are included in repayment, no prepayment penalty | Annual fee for lines of credit ($95–$175 after year one), possible origination/lender fees | Origination fee: 4.49%–8.49%, possible late/prepayment fees |
As long as you take the time to understand important details like loan terms, interest rates, fees, and repayment schedules of different lenders and platforms, you’ll be fine! Make your decision based on your financial status and your long-term goals.
800Financial
- Direct Lending Excellence: Matches you with the best loans with optimal loan terms.
- Comprehensive Loan Network: Loans ranging from $2,500 to $50,000
- Flexibility & Speed: Flexible terms from 3 to 120 months, 24 hours post-approval.
Getting Started: How to Apply for Funding Through Lendio
- Head to Lendio.com: You’ll be prompted to fill out an application with personal details, including info on your business. You will also be filling out info on your credit report as well.
- Connect Your Bank Account: You will be prompted to connect your bank account. This is a common step for many online financial platforms, so worry not!
- Review Loan Offers: Lendio will review and process your application, and then draw from its database of lenders to give you your best options. Take your time reviewing different loan terms, interest rates, repayment schedules, and any associated fees for each offer.
- Proceed with the Selected Lender: You’ll now be directed to the selected lender’s website, where you will fill out their required information and proceed with them from here on out.
- Funding: Once your application is approved, you will receive funding according to the specifications of your agreed terms.
Lendio’s team is available throughout the process to provide clarity and guidance.
Is Lendio the Right Business Lending Service for You?
Deciding whether Lendio is the right platform for your business’s financing needs requires careful consideration of its strengths and weaknesses in relation to your specific situation.
Lendio might be a good fit for you if:
- You are a busy small business owner who wants to save time by accessing multiple lenders through a single application.
- You want to compare various financing options and loan terms side-by-side.
- You are open to working with online lenders and exploring different loan types beyond traditional bank loans.
- You need funding relatively quickly and want to explore options that may have a faster application process than traditional institutions.
- You want access to a marketplace that includes SBA loan options.
However, Lendio might not be the best fit if:
- You prefer to work directly with a traditional bank or credit union and have an established relationship with them.
- Your business has very specific or complex financing needs that may require a more tailored approach.
- You have concerns about sharing your financial information through an online platform, despite Lendio’s emphasis on security.
- You have a very strong credit profile and believe you can secure the most competitive rates by directly approaching prime lenders.
Ultimately, the decision depends on your individual business needs, your comfort level with online lending platforms, and the time you have available to research and compare different financing options.
Lendexpress.net
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Your Best Lending Partner: We match you with top lenders for the best deals.
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Fast, Easy Process: Quick approvals with expert support.
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Tailored Solutions: Flexible terms that fit your needs.
Final Thoughts: Empowering Your Business
Securing the right business loan or business credit is often a huge moment for small businesses. This is when you’ll be able to upgrade your services in the ways you’ve been dreaming about. Services such as Lendio make this process so much easier by taking the uncertainty and messiness out of the equation.
However, remember that knowledge is power. While Lendio can streamline the search, it’s crucial to approach the entire process with diligence and a clear understanding of your business needs and financial situation. Take the time to carefully review each loan offer, understand all the loan terms and associated fees, and ensure that the chosen financing solution aligns with your long-term goals.
Equipping yourself with holistic knowledge of the lending landscape alongside using a useful service like Lendio is a recipe for near guaranteed success. Good luck growing your business, we hope we helped!
Frequently Asked Questions (FAQ) About Lendio
Here are some common questions that small business owners might have about using Lendio:
1. What types of businesses can use Lendio?
Lendio typically works with a wide range of small business types across various industries. Eligibility will ultimately depend on the specific requirements of the lenders within their network, but generally, they cater to established businesses as well as startups that meet certain criteria.
2. How does Lendio make money?
Lendio typically earns a referral fee or commission from the lenders when they successfully connect a borrower with a loan. This means that the service is generally free for small business owners to use. However, remember that the lenders themselves will have their own fees associated with the loan.
3. Will using Lendio hurt my credit score?
Applying through Lendio initially uses a soft credit check, which does not affect your credit score. However, if you accept a loan offer and proceed with a lender, they may perform a hard credit inquiry that could slightly lower your score temporarily. This impact is usually small (less than five points) and short-lived. So, using Lendio to explore loan options is credit-safe, but moving forward with a specific loan may involve a minor credit score dip.
