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Lendio Reviews: From Hype to Reality

Lendio Reviews: From Hype to Reality

In today's fast-paced business world, access to capital is crucial for success. For many small businesses, obtaining traditional bank loans can be a daunting and often frustrating process. This is where alternative lenders like Lendio step in, offering a streamlined and simplified approach to small business financing.

Lendio has quickly become a popular choice for small business owners seeking funding, with a wide range of loan products and a reputation for fast approvals. But what do the Lendio reviews say? Is Lendio as good as it seems?

What is Lendio?

lendio review

Lendio is an online lending marketplace that connects small businesses with lenders. They offer a variety of loan products, including SBA loans, term loans, and lines of credit. Lendio's application process is simple and streamlined, and they boast a fast approval time.

How does Lendio work?

Lendio is an online lending marketplace that connects small businesses with lenders. They offer a variety of loan products, including SBA loans, term loans, and lines of credit. Lendio's application process is simple and streamlined, and they boast a fast approval time.

Here's a step-by-step breakdown of how Lendio works:

Apply for a loan: You can start by filling out a short online application form on Lendio's website. This form will ask for basic information about your business, such as your business name, industry, and annual revenue.

Lendio reviews your application: Once you've submitted your application, Lendio will review your information and determine if you pre-qualify for any of their loan products. If you do, you'll be contacted by a Lendio funding manager to discuss your specific needs and financing options.

Connect with lenders: Lendio will match your business with a network of lenders that specialize in small business loans. You'll receive loan offers from multiple lenders, allowing you to compare terms and rates before making a decision.

Finalize your loan: Once you've selected a lender and loan offer, you'll work with the lender to finalize the loan agreement. This may involve providing additional documentation, such as your business financials or a personal credit report.

Receive your funds: Once your loan is approved, you'll receive your funds within a few days. The specific timeframe will vary depending on the lender and loan type.

Types of loan provided by lendio

Here's an overview of the types of loans provided by Lendio, along with some key details:

SBA Loans: Lendio offers a variety of SBA loans, including SBA 7(a) loans, SBA 504 loans, and SBA Express loans. SBA loans are backed by the U.S. Small Business Administration (SBA), which provides government-backed guarantees to lenders, making them less risky and potentially more affordable for small businesses.

  • Loan amount: Up to $5 million.
  • Interest rate: Prime+.
  • Terms: Up to 30 years for commercial real estate; otherwise, 10 years.
  • Funding time: 1-2 months after approval.

Term Loans: Term loans are traditional business loans that provide a lump sum of funding with a fixed repayment schedule and interest rate. They are typically used for financing larger projects or equipment purchases.

  • Loan amount range: $5k – $2 million.
  • Interest rate: Starting at 6%.
  • Terms: 2-10 years.
  • Funding time: As soon as 24 hours in some cases.

Merchant Cash Advance: Merchant cash advances are a type of financing that allows businesses to receive a cash advance based on their future sales. The advance is repaid as a percentage of the business's daily credit card sales.

  • Business Cash Advance
  • Advance amounts: $5k – $2 million.
  • Rates: Starting at 18%.
  • Terms: Up to 2 years
  • Funding time: As soon as 24 hours in some cases.

Business Line of Credit: A business line of credit is a revolving line of funding that businesses can draw upon as needed, similar to a credit card. It provides flexibility for managing cash flow and unexpected expenses.

  • Loan amounts: $1k – $500k.
  • Interest rates: 8%-24%.
  • Terms: 1-2 years
  • Funding time: 1-2 weeks.

Startup Loan: Startup loans are specifically designed for new businesses that may not have a long credit history or established financials. They typically offer smaller loan amounts and potentially higher interest rates.

  • Loan amounts: $500 – $750k.
  • Interest rates: 0%-17%.
  • Terms: Up to 25 years
  • Funding time: 2-4 weeks.

What to Consider Before Using Lendio

  • Your credit score: Lendio requires a minimum credit score of 600.
  • Your business financials: Lendio will review your business financials, including your revenue, expenses, and assets.
  • Your loan amount: Lendio offers loans of up to $500,000.
  • Your industry: Lendio does not lend to all industries.

What the Lendio Reviews Say

Lendio (@Lendio) / X
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Lendio loan reviews has a mixed bag of reviews online. Some Lendio reviews consumer reports says about their positive experience, praising the company's customer service and fast funding. Others have had negative experiences, citing high fees and poor communication.

The Pros and Cons of Lendio

Pros

Wide Range of Loan Products : Lendio reviews says it offers a diverse array of financing options to cater to the varying needs of small businesses. They provide SBA loans, term loans, lines of credit, merchant cash advances, and startup loans, addressing a broad spectrum of business requirements.

Fast Approval Process: Lendio streamlines the application process, enabling businesses to obtain pre-qualification decisions quickly. This expedites the funding timeline, allowing businesses to access capital promptly and address their financial needs efficiently.

Simple Online Application: Lendio's online application process is user-friendly and straightforward, eliminating unnecessary complexities and delays. Businesses can easily fill out the application form, providing the essential information required for pre-qualification.

Good Customer Service (according to some reviews): Many Lendio ratings have praised the company's customer service for its responsiveness, attentiveness, and willingness to assist borrowers throughout the loan process. This positive feedback highlights the company's commitment to providing a supportive and customer-centric experience.

Cons

High Fees: Some Lendio customers have expressed concerns about the relatively high fees associated with their financing options. While the exact fee structure may vary depending on the loan type and individual circumstances, these fees can potentially impact a business's overall financing costs.

Poor Communication (according to some reviews on Lendio): A few negative lendio reviews have indicated shortcomings in Lendio's communication practices, suggesting that some borrowers may experience delays in receiving updates or responses to inquiries. Effective communication is crucial for building trust and maintaining a positive customer experience.

Not All Businesses Qualify: Lendio has specific eligibility criteria for each loan product, and not all businesses may meet the requirements. Factors such as credit score, business financials, and industry may influence a business's ability to qualify for financing.

It's important to note that the pros and cons represent a collection of opinions and experiences from various Lendio customers. The actual experience of individual borrowers may vary depending on their specific circumstances and needs.

Is Lendio legit?

  • Lendio is a legitimate online business loan marketplace that connects small businesses with lenders. The company has been accredited by the Better Business Bureau (BBB) since 2021 and has an A+ plus rating. This means that Lendio has met the BBB's high standards for ethical business practices. 
  • Lendio is also a member of the National Association of Government Guaranteed Loan Providers (NAGGL). NAGGL is a trade association that represents small business lenders that specialize in government-backed loans. This membership is another indication that Lendio is a reputable and experienced lender. 
  • Lendio has also been featured in a number of reputable publications, including Forbes, Entrepreneur, and Inc. Magazine. This positive press coverage suggests that Lendio is a well-respected company in the small business lending industry. 

Conclusion

Lendio is a legitimate online lending marketplace that can be a valuable resource for small businesses seeking funding. They offer a wide range of loan products, a fast approval process, and a simple online application. However, it is important to note that Lendio has mixed reviews online. Some customers rave about their positive experience, while others have had negative experiences citing high fees and poor communication. Before using Lendio, it is important to do your research, understand the company's pros and cons, and compare loan offers from multiple lenders.

Frequently asked questions

Here are the most frequently asked questions related to lendio:

Is Lendio safe?

Yes, Lendio is a safe platform to use for obtaining business loans. They employ robust security measures to safeguard your personal and financial information, including:Bank-level security standards, Threat and vulnerability monitoring, Regular audits and Multi-factor authentication.

Does Lendio do hard credit pull?

Yes, Lendio does a hard credit pull on your personal credit report when you apply for a loan. This is because they need to assess your creditworthiness to determine your eligibility for a loan and the interest rate you'll be offered. However, they will only do a hard credit pull if you are matched with a lender and you agree to proceed with the loan application. This means that your credit score will only be impacted once if you apply for multiple loans through Lendio.