South Jordan, UT 84095
Lendio is a platform that helps small business owners find lenders and secure loans.
This service is actually a little misleading depending on what you’re looking for. To clear the air, this service acts more like a business loan matchmaker than anything else. They do not themselves originate business loans. Often times this service is confused for another based entirely on its name.
Getting its start back in 2011 by Brock Blake and Levi King, Lendio at the present time partners with over 75 business funders. Some of their more notable partners include AMEX, BlueVine, and OnDeck.
One of the key elements to making Lendio as successful as it is—is its commitment to keeping things simple. The simple application lends itself to using information about your particular business in order to solicit offers from their funding partners. After that, you have the ability to choose from a slew of lenders for which you are eligible to receive a loan from. There are various reasons why an aggregator like Lendio could be the best choice for your small business.
You are definitely going to save time, and will have no shortage of choices when it’s all said and done. What’s more, literally any business of any shape or size can apply for Lendio’s services. However, and I think its worth mentioning, approximately 7 out of 10 businesses are approved for a business loan through Lendio. Obviously this means that the service doesn’t 100% guarantee you a loan. For my money, I want a no doubt about it guarantee that my needs will be met with any service, let alone a service that is designed to get you and your business a loan. But this evens out a little bit because Lendio makes it clear at the beginning that it recommends you have been in business at least six months, have a personal credit score of at least 550, and make about 10,000 a month.
In terms of pricing, Lendio actually does things a little bit differently than what you may be accustomed to when it comes to lenders.
Lendio does not charge merchants a fee for their service per se. Instead, Lendio makes its money from their partner lenders.
The exact fees for borrowing capital will vary based on the partner fund you’re working with. Some of the charges included with the service are flat fees, origination fees, administration fees, prepayment penalties, as well as other fees based on the funder. So essentially, we can’t exactly tell you what kind of fees you’ll be dealing with until you actually are paired with a funder. But Lendio claims to make that process as painless as possible. I’m inclined to agree with them based on the customer reviews of the service.
Lendio is a essentially a match.com for SMB loans. It is designed to process the information you give them pertaining to your business, thus comprising an ample selection of lenders for which you’re eligible.
Because there is no guarantee of funding, Lendio clearly offers some borrow qualifications that they recommend for small businesses. However, it is important to note that your business does not have to meet any specific set of qualifications, but the more proactive you are in fortifying your business based on these recommendations, the greater your chances of being eligible for the loans you want.
Now that I’ve gotten that out of the way, let me also tell you that just because you are qualified for a loan with the service, it doesn’t guarantee you the funding you seek. Lendio discloses that roughly 70% of applicants are approved for a business loan. In order to have the best chance of getting funding, Lendio actually suggests you meet these very specific qualifications.
- Time In Business- 6 months
- Credit Score- 550
- Revenue- $10k/Month
As a result of Lendio’s partners having their own qualifications, some businesses may have some difficulty meeting these prerequisites. The companies that are typically low-revenue or some of the start-ups with a lot of question marks might find it hard to receive funding.
In regards to customer support, count of email or phone for Lendio. When you apply for Lendio’s service, you are assigned a funding manager who is your single point of contact. The chain of command works like this: your funding manager will bring you offers, and help you choose which of the offers suits your needs. Also, the funding manager intends to educate you on the loan products, and generally be available if you have any questions.
In addition to that, we would be remised if we didn’t tell you that Lendio has a public customer service agreement on their main homepage. The agreement includes customer service standards like treating the customer with “transparency and respect” and answering questions as soon as humanly possible. It seems a little bit too reassuring if you ask me. How can a company put so much pressure on its customer service abilities unless they feel confident in following through? Oh yeah we can safely say that they are not full of it. But is that really all that great? It would seem as though this is the standard set within the industry, to have a fully equipped customer service branch capable of fielding all incoming queries. However, the fact that they clearly state in an agreement posted on their homepage that they intend to deliver every time in helping resolving your issue. The customers have spoken, and they concur that the service is proactive, helpful, and transparent. They also talked about how they much prefer to be assigned to a single funding manager that they can develop a lasting relationship with, someone who is familiar with their business and their status.
In general, we have nothing but high praise for Lendio, despite the fact that the service doesn’t guarantee you funding, which attributes to the many negative comments from customers. This is to be expected, but in all honesty, there is no such service in existence that can guarantee funding regardless of your financial situation. If your business structure is a nightmare, you should probably be thinking of ways of improving on that first, and not worrying about funding at this juncture. No one likes investing in a sinking ship, with all due respect to you and your business.