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Lendio Small Business Loans: 2023 Review

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Susan Guillory
Susan GuilloryUpdated January 12, 2023

Overview of Lendio

Lendio is an online loan marketplace that matches small businesses to funders. While Lendio does not originate loans directly, it works with a network of over 75 business lenders who offer 11 different types of financing, including term loans, business lines of credit, merchant cash advances, equipment financing, and Small Business Administration (SBA) loans.Lendio is designed to be a one-stop shop for small business financing. You tell them about your business, then they do the work of hunting down loan options that fit your needs, qualifications, and budget. You are then presented with multiple offers and can decide which one (if any) you want to acceptLendio is not responsible for the interest rate, repayment terms, fees, or any other aspect of the loan product. Rates and terms are ultimately up to the discretion of the direct lender.The Takeaway: If it’s your first foray into the world of small business financing, Lendio can be a good place to start. They partner with a large number of alternative lenders, who tend to have lower qualification requirements, and offer faster funding, than banks (though rates are generally higher). Lendio also partners with some traditional and SBA-affiliated lenders.No matter what lender you choose, there are pros and cons to borrowing money for your business. Here’s a look at the advantages and disadvantages of getting funding through Lendio.
Here’s a look at the different types of funding options Lendio offers through its lending partners.

Accounts Receivable Financing

Accounts receivable financing uses your company’s unpaid invoices as collateral for a lump sum of cash. You can often get 80% to 90% of the invoice value up front. The lender (called a factoring company) then goes through the process of collecting payment from your customers. Once the full amount is paid, you’ll receive the remaining invoice balance, minus a factoring fee that is paid to the company. 

Business Line of Credit

Rather than provide a lump sum of capital all at once, a business line of credit gives your company access to a certain amount of cash that you can borrow as needed. You only pay interest on the amount you borrow and, once you repay what you’ve used, those funds become available again.  

SBA Loan

SBA loans are loans partially backed by the U.S. Small Business Administration and issued by participating lenders, often banks. Though qualification requirements can be strict, SBA loans tend to come with flexible terms and low interest rates, making them one of the best ways to fund a small businessRecommended: Conventional Business Loans vs. SBA Loans

Short Term Loan

Short-term business loans are term loans that generally need to be paid back over 18 months or less. They can be handy for accessing cash to cover emergency expenses, fill in unexpected gaps in cash flow, buy inventory, or take advantage of business opportunities. 

Business Term Loan

Unlike a short-term loan, a business term loan gets repaid over a number of years. Funding amounts are typically higher, and interest rates are generally lower, than short-term loans. Term loans can be a great option if you’re looking for larger amounts of funding to help sustain your business.

Business Cash Advance

A business cash advance allows you to borrow against your small business’s future income and access that capital today. Cash advances are typically funded much more quickly than other forms of financing, and also tend to be easier to qualify for. However, rates and fees can be much higher than other funding options.

Equipment Financing

Equipment financing gives businesses the funding needed to purchase big-ticket business equipment. Because the asset you purchase acts as collateral for the loan, equipment financing is generally easier to qualify for and offers lower interest rates than other types of business financing. 

Commercial Mortgage

A commercial mortgage is a loan designed to help your business secure a building or property for your business. It could be an office building, industrial warehouse, apartment complex, or land zoned for commercial use. You can also use commercial mortgage loans to develop, improve, or extend existing property. 

Startup Loan

Lenders typically like to work with businesses that have a proven record of success. However, some online and other lenders do offer business loans for startups with less than a year in operation. Compared to loans for more-established businesses, however, startup loans typically offer smaller amounts, shorter terms, and higher interest rates.

Business Acquisition Loan

A ​​business acquisition loan allows you to purchase an existing business or franchise, and take advantage of a business opportunity, even if you don’t have the capital to purchase the company outright. The assets of the business you are purchasing typically act as collateral for the loan. Lendio is a digital product available to eligible businesses in all 50 U.S. states, the District of Columbia, and all U.S. territories.

Lendio Small Business Loan Terms, Rates, and Fees

Short-Term Loan

Loan amounts: $25,000-$700,000APR range: 8%-36%Loan terms: 3-10 yearsRepayment schedule: MonthlyOrigination fee: Varies by lenderMinimum credit score: Varies by lenderTime to funding: 3-7 business days

Term loan

Loan amounts: $5,000-$2 millionAPR range: Starting at 6%Loan terms: 2–10 yearsRepayment schedule: MonthlyOrigination fee: Varies by lenderMinimum credit score: Varies by lenderTime to funding: As little as 24 hours

Line of Credit

Loan amounts: $1,000-$500,000APR range: 8%–24%Loan terms: 1-2 yearsRepayment schedule: MonthlyOrigination fee: Varies by lenderMinimum credit score: 560Time to funding: 1-2 weeks

SBA loan

Loan amounts: Up to $5 millionAPR range: 5.75%–8.25% variable; 8.5%–11.5% fixed on SBA 7(a) loans Loan terms: 10-30 yearsRepayment schedule: MonthlyOrigination fee: Varies by lenderMinimum credit score: 600Time to funding: 1-2 months

Startup loan

Loan amounts: $500-$750,000APR range: Starting from 0-17%Loan terms: Up to 25 yearsRepayment schedule: Varies by lenderOrigination fee: Varies by lenderMinimum credit score: 680Time to funding: 2-4 weeks

Accounts receivable financing

Loan amounts: Up to 90% of receivablesAPR range: Starting at 3%Loan term: Up to 1 yearRepayment schedule: Varies by lenderOrigination fee: Varies by lenderMinimum credit score: n/aTime to funding: As soon as 24 hours

Equipment loan

Loan amounts: $5,000-$5 millionAPR range: Starting at 7.5%Loan term: 1-5 yearsRepayment schedule: MonthlyOrigination fee: Varies by lenderMinimum credit score: 650

Cash advance

Loan amounts: $5,000–$2 millionAPR range: Starting at 18%Loan terms: Up to 2 yearsRepayment schedule: DailyOrigination fee: Varies by lenderMinimum credit score: Varies by lenderTime to funding: As soon as 24 hours

Commercial Mortgage

Loan amounts: $250,000-$5 millionAPR range: Starting at 4.5%–6%Loan term: 20-25 yearsRepayment schedule: MonthlyOrigination fee: Varies by lenderMinimum credit score: 600Time to funding: As soon as 45 days

Business acquisition loan

Loan amounts: $5,000-$5 millionAPR range: Starting at 5.5%Loan term: Revolving or 10-25 yearsRepayment schedule: MonthlyOrigination fee: Varies by lenderMinimum credit score: 600Time to funding: As soon as 30 daysInformation accurate as of  Jan. 12, 2023.

Who May a Lendio Small Business Loan Be Right For?

Lendio may be best for a business owner who:
  • Is just dipping their toes into small business financing. Finding your first business loan can feel overwhelming. Lendio can save you the time and effort it would take to research all your options and then apply to multiple lenders.
  • Wants to thoroughly explore their funding options. With more than 75 lending partners, Lendio searches through a wide range of lenders and types of financing with each application.
  • Wants to work with a reputable lender. Lendio is a highly-rated platform and works with reputable lending partners.

Who Lendio May Not Be Right For

Lendio may not be a good lending solution for a business owner who:
  • Already has an established relationship with a lender. It may be simpler to work directly with a lender you already know and with whom you have established trust.
  • Wants to keep their contact information private. Lendio may share your contact details with its partners, resulting in an uptick in emails, mailings, and phone calls.

Lendio Loan Fee Structure

Lendio itself is a marketplace, connecting borrowers to lenders. It does not charge a fee for its service. The company gets compensated by the lenders they bring business to.Lenders, however, may charge an origination fee, application fee, and/or other fees on top of interest. 

Lendio Loan Repayment

How — and how often — you will need to make payments on your loan will depend on the lender and type of loan you choose. It may also depend on other factors, such as your business history and credit. Generally, the stronger your business and credit, the less frequently you’ll have to make loan payments, and the more payment processing options you’ll be able to choose from.

Lendio Funding Eligibility Requirements

Since Lendio isn't a lender, qualification requirements will depend on the lender you work with and type of loan you choose. Here are some of the criteria lenders will likely take into consideration:
  • Personal credit score
  • Time in business
  • Monthly/annual revenues
  • Existing debt

Applying for a Lendio Small Business Loan

Applying for financing through Lendio is a fairly simple four-step process.

1. Fill Out the Application

The application includes questions about the industry you’re in, how much you want to borrow, how you’ll use the funds, and information about the business. This single application will be used to filter through offers from over 75 lenders.

2. Connect to a Funding Specialist

After you apply, you will be contacted by a funding specialist, who will discuss your options and help facilitate your application with a specific lender. 

3. Compare Loan Offers

You’ll then be presented with all the loan options you qualify for. It’s up to you to select the one that suits your needs the best.

4. Get Your Money

Depending on the financing you chose, you may get your loan funds in as little as 24 hours.

Lendio Alternatives to Consider

Other lenders that offer access to different types of business loans include OnDeck, Fundera, and Lantern by SoFi. Here’s how they compare to Lendio. 
  • OnDeck: Where Lendio offers nearly a dozen different types of financing, OnDeck offers only business lines of credit and business term loans. However, OnDeck’s repeat customer policy offers lower rates to returning applicants. And, their approval can be faster than Lendio.
  • Fundera: Like Lendio, Fundera is a lending marketplace that allows you to access a wide variety of different types of business loans through a single application. Unlike Lendio, though, Fundera doesn't offer commercial real estate loans.
  • Lantern by SoFi: Like Lendio, Lantern by SoFi’s lending platform gives you access to a variety of small business loans offered by different lenders all in one place. With a single application, you’ll be matched with offers that meet your needs, budget, and qualifications. Loans up to $2 million are available.
Let Lantern by SoFi connect you with the right lender for your small business financing needs.

Frequently Asked Questions

Is Lendio a legitimate company?
Is Lendio an approved SBA lender?
What credit score do you need for Lendio?
Does Lendio do a hard credit check?

About the Author

Susan Guillory
Susan GuillorySu Guillory is a freelance business writer and expat coach. She’s written several business books and has been published on sites including Forbes, AllBusiness, and SoFi. She writes about business and personal credit, financial strategies, loans, and credit cards.
Brand names: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
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