Lendio is a free online financing platform that matches borrowers to its network of lenders. It has a variety of loan options, including lines of credit, short term loans, SBA funding, equipment financing, and merchant cash advance (MCA). It can lend up to $500,000 and is ideal for those who need easy access to funding or are uncertain what the best loan option is.
Lendio Pros and Cons
Easy online application
Not a direct lender
Low credit score options
May require collateral
Offers a variety of loan options
Who Lendio Is Best For
- Businesses that need easy access to funding: Its line of credit is a great source for those who want to inject capital into their businesses. This also comes in handy for those planning to expand operations or fill any cash flow gaps.
- Those who are not sure what the best loan option for their businesses is: Lendio connects you with several lenders and provides access to multiple loan options. From there, you can compare and decide which program suits your needs.
- Those who are shopping for the best rates and terms in the market: It is suitable for business owners who are not in a hurry to get funding and have time to look for and take advantage of great deals.
Lendio Costs and Terms
Lines of Credit
$1,000 to $500,000
$2,500 to $500,000
8% to 24%
Start at 8%
One to two years
One to three years
There are no Lendio costs involved in using its online platform. However, you may be charged borrowing fees by its partner funder. These charges may include prepayment, administration, and origination fees, which vary depending on the lender financing your loan. Loan terms and rates are also dependent on the lender’s standards.
There is no mention of the repayment schedule on its website; though based on my research, some lenders are willing to provide flexible daily, weekly, or monthly remittances.
Do You Qualify for Lendio Financing?
Minimum Credit Score
Time in Business
Gross Annual Revenue
Aside from the qualifications above, you are also required to:
- Be at least 18-years-old
- Be a citizen or permanent resident of the US or Canada
- Have a valid business bank account
- Be current on your mortgage or rent payment
- Be operating a business in the US or Canada
- Have no bankruptcies in the past three years
Other lenders may also ask you to submit specific information about your business such as income ratios, business plans, and revenue projections.
Lendio Application Process
Lendio takes pride in its fast and easy online application process that can be completed in around 15 minutes. Here, you will be asked to input your personal and business information and submit the necessary documents. Then, Lendio will check your credit and look for offers from its network of over 75 lenders.
After receiving offers, a funding manager from Lendio will contact you to compare and discuss your options. Once you’ve chosen the best deal for your business, your lender will then fund your loan. This process can take anywhere from as early as 24 hours to up to 14 days.
up to $250,000 for line of credit
What Business Owners Should Know About Lendio
- Lendio is not a direct lender and does not originate loans: It is a marketplace that connects you with its network of over 75 lenders. This network is composed of several well-known companies, such as PayPal, Kabbage, BlueVine, LendingClub, Bank of America, and American Express.
- Lendio does not charge you for using its platform: Instead, it makes money by receiving commissions from its affiliate lenders.
- Lendio franchising and philanthropy: You need anywhere from $55,000 to $65,000 in liquid capital to be able to buy a Lendio franchise. You will also be happy to learn that for every loan facilitated on Lendio’s platform, it contributes a percentage of funds to low-income entrepreneurs around the world through Kiva.org.
Most Helpful Lendio Reviews
The majority of the Lendio reviews I found online are positive with customers citing its fast application and funding process as the reason for saying so. Its excellent customer support was also constantly mentioned. There are, however, a handful of negative reviews from clients who were unhappy with Lendio taking their information but not getting back to them.
Fast and reliable customer service
One customer who left a positive review on Trustpilot commended its support staff who assisted her in getting the funding she needs in just 24 hours. She also appreciates how they discussed the offers she received, which helped her make an informed decision.
Asks for too much personal information
One client who left negative feedback on Trustpilot said that he is worried about how Lendio will use his personal information. He narrated that it asked for a lot of information, including his social security number and income details upon application. However, he never heard back from anyone after that and has no idea what happened to his information.
Lendio Frequently Asked Questions (FAQs)
Is collateral required?
It depends on the amount and type of loan you are applying for. In some cases, the lender will ask you to provide collateral that’s worth the same amount of your loan; while at other times, it may ask for collateral that is higher in value than your loan. There would also be instances where the lender won’t ask for collateral at all.
Who do I repay my loan to?
You will pay straight to the lender. After receiving your loan, Lendio steps out of the picture.
How long does it take before I start receiving loan offers?
Lenders typically send loan offers within 72 hours of the submission of your application.
Lendio can match almost any type of borrower to its network of lenders. It can provide good rates to established businesses while also offering startup loans to companies with only six months of business tenure. It also provides easy funding access to growing businesses and ideal terms to those who don’t mind waiting for the best offer.
Meanwhile, its lack of fee transparency can be a drawback since the terms and costs of your loan become clear only after applying. It should also be worth noting that Lendio distributes your personal information to its network. If you are a first-time borrower, then you may consider Lendio to help you find the right loan for you. After all, applying through its platform is free of charge.