A Review of Lendio
Our Lendio review can help you decide on the best lender for your business. This is one of our Credit Suite reviews of online lenders.
Lendio is a fairly new lending company in the online space. Lendio acts as a go-between for borrowers and lenders, to provide small business loans. Loan types include business lines of credit, SBA loans, term loans, MCAs, equipment financing, and accounts receivable financing. We look at the specifics and drill down into the details.
This review was updated in 2022.
Background
Lendio is located online here: https://www.lendio.com/. Their physical address is:
10235 South Jordan Gateway
Suite 410
South Jordan, UT 84095
The Lendio phone number is: (855) 853-6346. Their contact page is here: https://www.lendio.com/contact/.
Lendio Requirements for All Funding Types
Lendio will check your company’s time in business. They also want to see your personal credit score and your monthly sales. Funding can be in as little as 24 hours.
Business Lines of Credit
Their business line of credit loan amounts run from $1,000 to 500,000. Lendio’s loan term has a 1 to 2 year maturity date. Their payment frequency is monthly. In addition, the time to funds is 1 to 4 weeks. You will need a personal credit score of at least 560.
Business LOC Fees
The rate ranges from 8% to 24% interest.
SBA Loans
Loan Amounts run from $50,000 to 5 million. Lendio’s loan terms are 10 to 25 Years. In addition, their payment frequency is monthly. The time to funds is 30 – 90 days.
SBA Loan Fees
Their interest rate will be over the prime rate of interest.
Short Term Loans
Their short term loan amounts run from $2,500 to 500,000. Their loan terms are 1 to 3 Years. In addition, their payment frequency can be daily, weekly, or bi-monthly. And the time to funds is 1 to 4 weeks.
Short Term Loan Fees
Their interest rates run from 8% to 13%.
Business Term Loans
Their business term loan amounts run from $5,000 to 2 million. Their loan terms are 1 to 5 Years. In addition, their payment frequency can be weekly, bi-monthly, or monthly. The time to funds 1 day to 4 weeks.
Business Term Loan Fees
Their rate is over 6%.
Merchant Cash Advances
Their merchant cash advance loan amounts run from $ 5,000 to 200,000. So, their loan terms run up to two years. In addition, their payment frequency can be daily, weekly, or monthly. The time to funds is 24hrs to a week.
MCA Fees
Their rate runs from 18% to 40% or more in interest.
Equipment Financing
Their equipment financing loan amounts run from $ 5,000 to 5 million. Also, their loan terms are 1 to 5 Years. In addition, their payment frequency is by month. The time to funds can be as little as 24 hours.
Equipment Financing Fees
Their interest rates run from 7.5% to 45%.
Accounts Receivable Financing
Their account receivables loan amounts are available up to 90% of A/R. Also, their loan terms are 1 to 3 Years. In addition, you can get funding in as little as 48 hours.
AR Financing Fees
Their factor rate is 5% and up.
Advantages of Working With Lendio
The advantages include flexible payment frequencies. In addition, several lending options are available. Some of the maximum amounts are rather high. Furthermore, the minimum FICO score needed for a business line of credit is quite low. So it can work as an option for business owners who have lower than average personal credit scores.
Disadvantages of Working With Lendio
The main disadvantages are that it can be a fairly long time before you are going to get your funds. Other players in the online lending space are a lot faster. Plus some of the rates are very high.
TL; DR: Key Details from Our Lendio Review
Lendio does not seem to be a good place to go if you are in a hurry to get funding. But if you need a great deal of funding ($1 million or more), then Lendio can be a possible and reasonable choice. And a delay in getting that much money should be reasonable and downright expected.
But their interest rates max out rather high. A business borrowing $5 million via equipment financing could be looking at a 45% interest rate. That works out to over $2 million without compounding!
The Best Businesses to Work With Lendio
Businesses doing which will do the best with Lendio are the ones which need a great deal of funding and that are willing to wait for it. Also, they are confident that they can pay their debts back on time if not early. Otherwise, there are other lenders online which will provide funds more quickly and many of those other online lenders will charge lower rates.
And finally, as with every other lending program, whether online or offline, always remember to read the fine print and do the math.
Go over the details carefully, and decide if this option will be good for you and your company. In addition, always consider alternative financing options that go beyond lending. These include building business credit. So this is in order to best decide how to get the money you need to help your business grow.
Our Lendio Review: Takeaways
So, did our Lendio Review help you? Today, we want to hear from our audience! Share your voice with us about your experiences with online lenders. And be sure to tell us what you think of our Lendio Review.
