Service and Support8.9/10
- Large number of funding options.
- Network of 75+ lenders means price competition.
- Funding options for nearly any business.
- High profile lenders use the platform (Amex, Bank America, Chase, etc.)
- Just one application to fill out.
- Uncertain if receiving best pricing through competitive bidding.
- May incur marketing and solicitations following info requests.
- Peer-to-peer lending platforms back some term loans (unproven in downturns).
Based in Salt Lake City, Utah, Lendio is an online marketplace where small businesses can get matched with an appropriate, alternative lender. They facilitate almost any type of small business funding your business can think of. These offerings include:
· Startup Loans
· ACH Loans
· Commercial Mortgages
· Term Loans
· Equipment Financing
· SBA Loans
· Business Credit Cards
· Merchant Cash Advances
· Business Acquisition Loans
By filling out just one simple, online application, businesses can gain access to all these options. You may be wondering how Lendio is able to provide so many diverse offerings? Simple-partnerships. Lendio relies on a network of over 75 different lenders with varying specialties. Some of the lenders they partner with include:
· American Express
· Bank of America
· Lending Club
· Funding Circle
· QuickBridge (now National Funding reviews)
The fact that American Express is placing loans on Lendio’s platform says something. One of their new products is a hybrid merchant cash advance and a two-year business loan.1 This product would be for B2C customers who presumably have a substantial proportion of revenue coming from credit card sales (perfect for current Amex business customers!).
But Lendio’s platform also offers products for B2B entities, such as invoice factoring, equipment financing, installment loans and revolving credit lines.
Businesses start the process by entering information through the Lendio platform. This is done through a series of questions including:
· Amount of funding desired
· Purpose of funds
· Time in Business
· Type of Business Entity
· Annual Revenues and Profits
· State located
· Percentage of ownership
· Business accounting software used, if any
As you get further along in the process they ask more about your business such as how revenues are generated credit cards, invoiced, etc.) documentation and business bank account information.
As the process moves along, Lendio asks you a key question- Which of the following is most important to you?
1. Amount of Funding
2. Speed of Funding
3. Cost of Funding
This is where the algorithm kicks in, prioritizing the variety of funding options. The quick business loans will not be the cheapest and the cheapest will take the longest to obtain.
How is Lendio Different from Factoring Companies?
Lendio is not a factoring company itself. Rather, it’s an online marketplace that matches businesses seeking capital with appropriate finance companies. Where traditional factors focus on face-to-face meetings, Lendio is strictly an online, fintech platform.
Similar to Fundera reviews, National Business Capital and Biz2Credit, Lendio uses proprietary algorithms to quickly vet applicants and determine a funding product that suits their needs and credit profile.
Further, Lendio assists businesses in industries not covered by traditional factoring companies including gas stations, legal professionals, freelancing, auto dealers and even gambling businesses. Traditional factors concentrate heavily in the construction, transportation, staffing, manufacturing and government contracting industries.
Lendio Pros and Cons
In addition to the Lendio reviews above, we reiterate the key pros and cons:
· Large number of funding options.
· Network of 75+ lenders means price competition.
· Funding options for nearly any business.
· High profile lenders use the platform (Amex, Bank America, Chase, etc.)
· Just one application to fill out.
· Uncertain if receiving best pricing through competitive bidding.
· May incur marketing and solicitations following info requests.
· Peer-to-peer lending platforms back some term loans (unproven in downturns).
For more information on Lendio:
Who Uses Lendio?
Where does their funding come from?
Do they offer specialty financing options?