| Key Points | Details / Explanation |
|---|---|
| Lender Type | Small Business Loan Marketplace |
| Available Loans | Business term loans, lines of credit, accounts receivable financing, equipment financing, SBA loans, commercial mortgages, startup business loans, business acquisition loans |
| Borrowing Amounts | Up to $10 million |
| Qualifications | Credit score: 520 – 640+; Time in business: 6+ months; Revenue: $8k+ monthly (varies by lender) |
| Application Process | Online application, fast pre-qualification, submission of documentation; Difficulty: Easy to Medium |
| PFO Rating | 4.3 / 5 |
| Lendio Pros ✅ | Lendio Cons ❌ |
|---|---|
| ✅ Convenient online application with fast pre-qualification decisions. ✅ Many loan types are available through its network of 75+ lenders. ✅ High borrowing amounts & long-term financing are available. ✅ Lower qualifications than banks and credit unions. |
❌ Might require extensive documentation to apply. ❌ Rates and fees can be expensive. ❌ Loan proceeds could take longer to disburse than other alternative lending options. |
As a small business owner, you have more business financing options than ever with the number of alternative lenders available. While that’s good, researching and applying to various lenders can take significant time and effort.
Lending marketplaces like Lendio reduce the time and stress of finding lenders by matching your application with its lender partners. It offers various lending options with different qualification requirements through its network of over 75 lenders.
However, the costs could run high depending on the Lendio business loan and lender. This review covers the pros, cons, and how to apply to help you decide if Lendio is the right fit for your business.
Specifically, we’ll answer these questions and more:
Lendio is a business loan marketplace connecting prospective borrowers with its network of lenders. Lendio’s partners include a wide range of lenders, each offering different loan options tailored to various business needs. Working with multiple lenders can help you apply for various small business loans and receive various loan offers if you qualify.
The company is known for its fast application and quick turnaround time on loan decisions. It offers access to small business loans that meet most business needs, including SBA loans.
Lendio is not a direct lender, so you won’t know your rates or terms until you apply and receive offers from its lender partners. However, it helps you streamline the process of finding a lender with its one-to-many application process. Lendio compares offers from its partner lenders, allowing you to review and select from multiple potential lenders in one place.
Its service is free, so there is no cost to apply. Lendio receives compensation from lenders when it successfully finds you funding. Lendio requires businesses to be operational for at least 6 months to qualify for most loans. Monthly revenue requirements of at least $8,000 apply for most of Lendio’s business loan products.
The Utah-based business loan marketplace launched in 2011 (previously FundingUtah in 2006). Since then, it has helped small business owners access more than $12 billion in funding, with over 300,000 loans.
Using Lendio allows small business owners to compare multiple loan offers from a vast network of lenders, all in one place. Because Lendio partners with various lenders, the fees and interest rates you receive will depend on the specific loan options and the lender you choose.
Lendio itself does not charge any application or origination fees for submitting your business loan application through their platform. Instead, any costs associated with your loan—such as interest rates, origination fees, or other charges—are set by the lender that ultimately funds your loan. This means you can review and compare multiple loan offers side by side, helping you find the most competitive rates and terms for your business needs.
Fees and rates can vary significantly based on factors like your credit score, annual revenue, time in business, and the type of business financing you select. Some loan options may have higher rates but more flexible qualifications, while others may offer lower rates for more established business owners with strong credit histories.
By leveraging Lendio’s marketplace, small business owners can make informed decisions and select the right loan offer that aligns with their business goals and cash flow requirements. This flexibility and transparency make it easier to find a funding solution that fits your unique business needs, whether you’re seeking a short-term loan, a business line of credit, or another type of small business financing.
Applying to Lendio matches your application to lenders that you’re most likely to qualify for and loan options that best suit your needs. It offers a suite of financing products through its lender network. Lendio and its partners provide a range of business loans, including commercial mortgages and startup loans, to cater to diverse business needs. Lendio can also help you access SBA-approved lenders that offer SBA loans with favorable terms.
Here are the available Lendio business loans.
Business term loans are the closest alternative lending product to bank loans. You receive a large sum of money upfront and repay it, plus interest, in fixed payments. Lendio business term loans carry daily, weekly, or monthly payments.
You can use the funds for working capital needs, purchasing or upgrading equipment or software, business acquisition, etc. These loans are best suited for financing a large one-time project or business need.
Short-term loans are essentially a faster version of term loans. You get a lower borrowing amount, and the repayment terms are much shorter.
However, they’re slightly easier to qualify for than traditional term loans. Short-term loans differ from conventional loans in their shorter repayment periods, which can range from just a few months to two years. Lendio indicates that, while the average funding time is 3-10 business days, you may sometimes receive your funds within 24 hours.
A business line of credit gives you an available credit limit to draw funds as needed. With a business line of credit, you only pay interest on the amount you actually use, much like a business credit card, which operates as a revolving line of credit for business expenses. This type of financing is excellent for ongoing projects, seasonal businesses, and covering unexpected expenses.
Lendio offers both revolving lines of credit and non-revolving lines of credit. A revolving line of credit is like a credit card. Your credit limit replenishes as you pay back what you draw.
A non-revolving line of credit expires once you’ve drawn all funds from the credit limit. Since it is not ongoing, non-revolving lines of credit tend to have lower rates.
Accounts receivable financing, also known as invoice financing, converts your unpaid invoices into an immediate cash advance. This process is also referred to as invoice factoring, where businesses sell their outstanding invoices to a factoring company at a discount to receive immediate cash flow. This form of funding is suitable for companies that experience cash flow interruptions due to the delay between delivering goods or services and receiving payment for them.
The way it works is that the financing company, called a factoring company or Factor, issues a cash advance based on the invoice’s value, typically 80%-90%. When your customers pay their invoices, it goes directly to the factoring company.
Financing companies charge a factoring fee for the service, which is usually a percentage of the invoice. The factoring fee is sometimes referred to as a discount rate because the company essentially purchases the invoices at a discounted rate.
The factoring fee is typically based on the credit terms extended to your customers. Net-30 terms (invoice is due in 30 days) will have a lower factoring fee, usually around 3%. Longer terms, like net-60 or net-90, will carry higher fees.
Once the factoring company receives payment from your customers, it issues the remaining invoice amount minus the fee. Since repayment comes from your customers, factoring companies are typically willing to work with newer businesses with low credit scores if your customers have a high credit rating.
Equipment financing allows small businesses to acquire needed equipment on credit. Business equipment encompasses a wide range of items, including construction and medical equipment, as well as office equipment such as computers, software, and office furniture.
Lendio offers equipment leases or loans with its financing program. This form of asset-based lending uses the equipment as collateral. This is known as a self-collateralized loan, similar to a car loan or mortgage.
Lendio can connect you to SBA-approved lenders. SBA loans are often considered the best small business loans available.
The US Small Business Administration (SBA) oversees the program. The federal government agency sets rules for lenders to follow, limits interest and fees, and partially guarantees up to 85% of the loans.
The backing from the SBA lowers the lender’s risk, allowing it to offer higher loan amounts at lower rates and extended repayment terms. Lendio offers SBA 7(a) loans, which are the most common and versatile in the program. It also offers SBA 504 loans and SBA microloans.
A commercial mortgage is a loan to acquire, develop, renovate, or refinance a commercial property. Companies use this form of commercial real estate loan for a variety of purposes, including retail stores, warehouses, factories, and more.
Most Lendio business loans require a business to be at least six months to two years old, but a startup loan may be more lenient on this requirement. Startup loans include term loans, lines of credit, and business credit cards.
Business acquisition loans provide the funds to acquire another company, whether it’s a competitor, supplier, franchise, or other. These loans provide the capital necessary to cover the purchase price, related fees, and, in some cases, working capital to support the transition.
They can be structured to fit both small and large acquisitions, depending on the borrower’s needs and financial profile. Lenders typically evaluate the target company’s financial health, cash flow, and overall business value before approving the business loan. This type of financing is ideal for owners looking to expand operations, enter new markets, or gain strategic advantages through acquisition.
The specific qualifications for each loan depend on the lender. However, Lendio provides some basic requirements for some of its loans. Credit requirements can vary depending on the loan type and lender, with some products requiring a higher credit score or more established credit history.
Most loans have a minimum credit score requirement, but some don’t. Your annual revenue and time in business are also qualifying factors. Lenders may also consider your monthly revenue and credit history when determining your eligibility and the rates you receive. The lowest-cost options typically require a higher credit score.
Business Term Loan:
Business Lines of Credit:
Accounts Receivable Financing:
Equipment Financing:
SBA Loans:
Commercial Mortgages:
Startup Business Loans:
Business Acquisition Loans:
It doesn’t list minimum requirements for accounts receivable financing or business cash advances. That’s because repayment comes from future revenue, whether from future sales (merchant cash advances) or when your customers pay their invoices (accounts receivable factoring). In both cases, your personal credit score and time in business matter less than the reliability of your customers.
The company shares your information with its lending partners, which could lead to you being contacted by third parties in the future. If you are concerned about privacy and the protection of your business information, you may want to consider a different lending option.
While the company offers a convenient application and makes fast decisions, funding times can take longer than those of other alternative business lending options. Some products can provide funding within 24 hours of approval, but the average is 3-10 business days.
While the Lendio website advertises a quick application process, one aspect that could delay the process is the required documentation. Lendio has more documentation requirements than most alternative lending options.
Lendio partners with a network of over 75 lenders to offer a range of business financing options. Many lenders in Lendio’s network are willing to work with startups or businesses with lower credit scores. Lendio does not charge customers direct fees as it operates as a broker paid by lenders for referrals.
When you apply, the company only performs a soft credit check, which won’t affect your credit. However, after you accept an offer from one of its lending partners, that lender may perform a hard credit inquiry during underwriting, which will impact your credit score.
Alternative lending options, such as Lendio, tend to be more expensive than traditional lenders like banks and credit unions. That’s because these services are more convenient, with faster funding times and lower qualifications. However, you won’t know your exact rates and fees until you apply and receive funding offers from lenders.
Lendio offers a business loan affiliate program. It is a lending marketplace and not a brokerage, but business loan brokers can partner with the company to provide its lending products to their SMB clients.
The process to apply for a Lendio loan is designed to be straightforward and user-friendly. Completing the initial online application at Lendio typically takes about 15 minutes.
Visit the Lendio website and follow these steps to apply:
You will answer basic questions about yourself, your business, and your funding needs. Most estimates suggest it only takes about 15 minutes to complete the application.
After applying, a Lendio specialist will contact you to discuss your financing needs. Lendio is known for its personalized service, with dedicated specialists who tailor their support to your specific business needs. Lendio assigns a dedicated funding manager to assist applicants in evaluating and choosing loan offers. The applicant may need to provide additional documentation for final approval after selecting a loan offer.
Lendio will send you offers from lenders that match your request and qualifications. Compare the offers and choose the loan offer that best suits your needs.
The lender you choose to work with will finalize the loan process. Depending on the loan type, you could receive your funds within 24 hours to several weeks.
The repayment structure can vary significantly depending on the type of loan. SBA loans will carry fixed monthly payments. Term loans can be daily, weekly, or monthly. Most business cash advances are made in daily or weekly payments.
A business cash advance is a form of alternative financing where a lump sum is provided upfront and repaid through a percentage of daily credit card sales, making it distinct from traditional loans. Repayment for merchant cash advances is often tied directly to your credit card sales, with a portion of each day’s sales automatically applied to your balance.
Some products, like merchant cash advances, use a factor rate instead of an APR. Factor rates are a fixed percentage fee. There’s no way to save on interest if you pay it off early.
Factor rates are typically expressed as a range of 1.1 to 1.5. Multiply the advance amount by the factor rate to see your interest. For example, if you borrowed $250,000 at a factor rate of 1.2, the formula would be:
$250,000 x 1.2 = $300,000. You’d pay $50,000 in interest. It can be an expensive way to borrow money. Some products will also have a prepayment penalty if you pay them off early.
You’ll repay most loans with an automatic clearing house (ACH) transfer from your business bank account. The exact rates, fees, and repayment structure will depend on the lender and loan product you match with.
The company offers a convenient online application that can be completed in minutes. It then takes your application and sends it to the lenders in its network of 75+ lending partners, where you are most likely to qualify. This process saves you significant legwork and stress trying to find a lender.
Due to the number of online lenders it works with, Lendio can offer over a dozen financing programs and high borrowing amounts. The qualifications are typically lower than those of banks.
You can get prequalified on the same day you apply. Qualified applicants also get a dedicated funding specialist to assist with the process.
Unlike some alternative lending sources, you can get long-term financing. Examples include the extended payment terms available with SBA loans, term loans, and commercial mortgages.
While the application process is quick, one caveat is that there are usually exhaustive documentation requirements. The rates and fees on some products can be expensive, but you won’t know your costs until you apply and get matched with lenders.
The time to receive your funds can take a while, depending on the loan type. While Lendio is generally faster than banks, it can be much slower than other alternative lending options.
Pros:
Cons:
Yes, Lendio is a legitimate online marketplace for business loans. The Better Business Bureau (BBB) has accredited the company since 2021, where it has an A+ rating.
Lendio will only perform a soft credit check when you apply, but the marketplace may match you with a lender that will do a hard credit pull during underwriting.
Lendio has an excellent online reputation, but it also has some negative reviews. On Trustpilot, Lendio has a 4.7-star rating from more than 21,500 customer reviews. Lendio has a 1.57-star rating out of five stars based on 14 customer reviews on BBB.
Many positive Lendio reviews focus on the quality of customer service and the borrowing experience. The reviews broadly discuss the customer service team’s knowledge, courtesy, and professionalism. Multiple users mention their funding specialist by name and praise the attention and dedication they receive.
Another common theme in positive reviews is the ease of the application process and the lower qualifications. Many borrowers have expressed that the application process at Lendio is easy and quick. Several users mentioned that they were able to grow their businesses due to the ease of qualification and the fast funding time.
There are multiple negative reviews regarding the costs involved with some of the lenders that Lendio matched business owners with. Several say they were charged exorbitant fees and high-interest rates. Others complained about prepayment penalties when trying to pay the loan off early.
Some negative reviews discuss delays in receiving their loan funds. Others mention that the lender they matched with didn’t meet their needs. Another recurring complaint was about hard credit inquiries from lenders despite believing they would only have a soft credit pull.
While the positive mentions of the customer service experience far outnumber the negative ones, several customers complained about being unable to reach someone or feeling their representative was rude. One of the more common negative complaints was that Lendio provided their information to lending partners, who then contacted customers with aggressive sales tactics.
While Lendio’s qualifications are less stringent than those of traditional lenders, they can be higher than those of some alternative lenders. Online reviews suggest the company has about a 60% approval rate for businesses that apply.
Common reasons for denial include insufficient business history, low revenue, or a poor credit score. If you were declined, the denial letter should clearly state the reasons for the decision. You can contact Lendio if you have more questions.
The company also states it offers accounting software tools to help improve business finances and guidance on boosting your credit score. However, it does not specify how long you must wait before you can apply again.
Fortunately, many lending options exist if Lendio doesn’t work for you. If you struggle to qualify for a loan because of a low credit score, you can apply for a bad credit business loan.
Most alternative lending facilitators (like PFO) can help you find funding programs that meet your needs and qualifications. You should be able to find the following:
Lendio is best suited for small business owners who don’t know what funding they need and want to explore their options across lenders. The lending platform is also suitable for businesses seeking to partner with a reputable company.
If you are concerned about privacy or want to do your own lender research, Lendio is probably not the best option. In addition, businesses with excellent credit, high annual revenue, and more than two years in business could likely find less costly financing options.
However, the easy application and variety of lending products make Lendio an attractive option. The company works with vetted and highly reputable lenders.
Based on user reviews, available products, and its lender network, we rate Lendio at 4.3 out of 5. The company is worth considering if you need a small business loan. Still, you should be prepared for potentially high costs and the possibility that your information may be shared with third-party companies.
Disclaimer: The Lendio trademark is owned by Lendio, and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from Lendio.
