What Is Lendio?
Lendio is a free online small business loan marketplace that acts as a “mediator” between you and lenders in the United States.
They assist you in understanding the many sorts of small business loan alternatives available to you and assisting you in determining the best financing option for you, after which they have you submit and send your application to the lender, who will then determine whether or not to accept you.
Why did you choose Lendio?
If you’re anything like me, you’ll want to know straight away why Lendio is better than any other online marketplace.
Listen, I’ve looked at other online small company loan marketplaces like Fundera, and the reason Lendio is a better option is that they have a lot more lenders:
- Have lower APR Rates
- Carry Merchant Cash Advances
- $12,000,000 Funded
- 300,000+ Small businesses helped
- Exceptional tools and resources
- Services Offered & Types of Funding
• Business Line of Credit
A company line of credit is one of the most flexible financing options. It may be used for almost every small company necessity, including purchasing equipment, recruiting employees, boosting inventory, opening a second store, paying invoices, and installing a cappuccino machine.
If you want to apply for a business line of credit from one of Lendio’s lenders, you’ll need to be in the company for at least six months and have at least $50,000 in annual sales.
A credit score of 560 or above is also required. The loan rates given by Lendio’s lenders might be as low as 6%. If, for instance, Lendio’s interest rates are very competitive in this regard.
• SBA Loan
An SBA loan might be ideal for many small business owners, as it can cover almost all of their needs. The Small Business Administration of the United States guarantees a portion of these loans.
Lenders are more inclined to grant financing to entrepreneurs like you because they face a lower chance of default.
SBA loans are noted for requiring more paperwork, taking considerably longer to finance, and having a higher rejection rate than direct internet lenders.
• Business Term Loan
A business term loan is the most dependable and flexible approach to getting additional operating capital for your company’s expansion. Term loans for businesses are designed to satisfy practically any specific company need.
You may use your loan to finance everything from capital renovations to new equipment to recruiting additional employees.
Lendio’s specialists realize how important it is to figure out how much money you can afford, so they’ll match you with a loan with a fixed interest rate or flat fee, which means your payments will be the same for the duration of your 1-5 year term.
• Merchant Cash Advance
When you need money fast, this sort of financing allows you to borrow against future profits and obtain the money you need right away.
One of the most remarkable things we discovered throughout our Lendio review is that a merchant cash advance may often be funded in as little as 24 hours.
In most circumstances, you won’t need to present a pile of financial documentation; instead, your lender will want to go over your bank accounts or receivables over the previous 4-6 months.
• Business Credit Card
A business credit card from a Lendio lender may be the way to go if you don’t qualify for a small company loan or aren’t ready for one.
You can boost your working capital and receive cash quickly when you need it with a credit card. A credit score of 680 or better is usually required to qualify for a business credit card.
Also Read: Fundbox Review
Advantages
1. Easy 15-Minute Application
Customers must go through a complicated and lengthy application procedure with many business loan providers. India features a single application that is quick, free, and simple to complete.
Borrowers may also obtain money in as short as 24 hours.
2. More than 300 Lenders Provide Loan Options
India is dedicated to assisting each company owner in identifying the best financing choices from the best lenders. As a result, the organization now provides loans from over 300 different lenders.
3. Variety of Loan Types
India aims to assist business owners in locating appropriate loans for both their company and their budget.
As a result, business lines of credit, short-term loans, merchant cash advances, business term loans, business credit cards, equipment financing, commercial mortgages, accounts receivable financing, startup loans, company acquisition loans, and SBA loans are all accessible.
4. Live Chat
Lendio’s website has live chat software, allowing clients to receive immediate, on-demand customer care.
Employees from Lendio can help borrowers and answer queries regarding business loans in minutes using this software.
5. Bookkeeping Software Incentive
Lendio encourages you to get your books in order by giving Sunrise accounting software. Prospective borrowers with an active Sunrise account are twice as likely to get approved.
While utilizing Sunrise by Lendio does not guarantee to fund, it might offer you a leg up as you prepare to apply for a business loan.
Disadvantages
1. Variability of Options
Though having a large number of small business loan alternatives isn’t the worst difficulty a lender could have, it does create one complexity in that it makes rate guarantees harder.
Because there are so many alternative lenders, Lendio cannot make rate or fee commitments because it does not establish the parameters of the loan offers.
Furthermore, the sheer quantity of possibilities available within a network of over 300 lenders may overwhelm some consumers.
2. Not a Financial Institution
Borrowers should be informed that Lendio does not finance loans directly. Instead, a technological business uses a proprietary algorithm to promote the best possible match between borrowers and lenders.
As a result, Lendio is not liable for the loan product’s interest rate, repayment period, origination fee, loan forgiveness, or other features. The direct lender has complete control over these and other facts.
Remember that each Lendio review may represent the consumer’s experience with Lendio’s platform, the quality, and service of a loan acquired through one of Lendio’s affiliated lenders, or both.
3. No Face-to-Face Consultation
Each borrower is assigned a specialized personal funding manager to inquire about your needs and lead you through several loan alternatives, precisely like an internet lender or bank representative would.
However, all of these contacts are virtual; there are no in-person consultations at a physical place, which may put some borrowers off.
