Lendio Loan Review
This review of Lendio will focus on their loaning products as well as their credibility, company history, and website. The review is up to date with the year 2020.
Lendio Review in Numbers: 2020 Updated
💰 Loan Amount
|$2,500 to $500,000|
💸 Loan Term
|1 to 3 years|
|Both secured and unsecured|
⭐ Client Reviews
🌝 Easy to Apply:
💳 Minimal Interest Rates
💌 Online Feedback:
|4.9 / 5 Trust Score on TrustPilot|
🏆 Awards and Recognition:
Lendio Review Summary
Credibility - 100%
Client reviews - 98%
Website - 100%
Compatibility - 95%
Lendio is not like every other small business lending platform, it’s a lending marketplace. Nevertheless, this offers more options to the borrower in getting a good deal. Whilst loans are capped at $500k and you must be in business for 6 months, the loans are relatively versatile and competitive. The website is fantastic, and the company has a great reputation among customers.
Credibility & Company Story
How Lendio Started
Lendio was founded in 2011 by Trent Miskin and Brock Blake. Trent Miskin is perhaps the technical founder of the two – as this is usually how it works. Trent graduated Brigham Young University with a computer science degree, then quickly went on to work in PHP development. Brock, on the other hand, was a semi-pro soccer player turned founder of FundingUniverse. By 2012, he had landed himself as a columnist at Forbes, at around the same time as he co-founded Lendio.
As founders, they were fond of the idea about creating a positive, rewarding workplace. This is reflected by their trophy collection of countless rewards for having a good workplace, such as Glassdoor Best Places to Work: 2020 and Fortune Best Places to Work in Finance & Insurance: 2019. The company is estimated to have over 100 employees, with two US locations: Lehi, UT, and Woodbury NY.
How did Lendio Grow its Presence in the Market?
Lendio has helped fund $2 billion to businesses through 107,000 loans. With over 75 lenders in their network, you can’t help but feel that they’re a slightly more impartial, well-intentioned company than some of its competitors. There’s no doubt that they’re a highly profitable company, but the fact they facilitate many different options of business owners.
Because of this, Lendio is also on top of what’s important for customers, and the current climate. Not only do they talk a lot about the struggles of getting bank funding, but they also have a whole section on the website regarding COVID-19. They were the first (and one of the only) companies in this market space to actually address the pandemic immediately, with a ton of helpful resources. They also have a blog that serves to inform business owners on many SME related issues.
There’s even a page dedicated to different loan calculations, with insightful explanations at the bottom of each. This is all conducive to Lendio’s brand image of being a trusted, helpful entity for small businesses with cash flow issues. This is also reflected in the extremely positive and impressive reviews.
Leading Private Investors in Lendio
With 2 acquisitions and $108.5m in total funding, Lendio has been relatively active since its birth. They’ve remained private and have had 7 funding rounds. Most recently, they raised $31 million, with Mercato Partners being a lead investor. Some other lead investors from the previous funding rounds were: Chromecast Venture, Stereo Capital, Napier Park Global Capital, Runa Capital, Highway 12 Ventures, and Tribeca Venture Partners. There are however 15 investors in total, though.
In Detail: What Lendio Does
Lendio is just like any other small business lender, in that they’re offering a quick alternative compared to the lengthy bank one. Applications take 15 minutes, which although it sounds impressive, it’s standard in this industry now. It’s important to draw the distinction though, that this is a lending marketplace.
Applying through Lendio doesn’t mean you’re applying to one lender, like how most small business loan companies work. Instead, Lendio is the middleman between your business and over 75 lenders. Logically, this increases your chances of approval and the added choice may result in a better deal than otherwise. Whilst you can sometimes get a loan without security, Lendio recommends its potential borrowers to find collateral that will help their chances of approval.
Generally, loans will range from $2,500 to $500,000, with 1 to 3 years term. You can get secured and unsecured loans, which is flexible, as well as forgiving approval criteria such as 6 months in business, a credit score of 550 or above, and $50,000 in annual revenue. This absolutely makes them suitable for both very small businesses and startups. However, more established SMEs may find these loans a bit limiting at $500,000.
Providing documentation will depend on the lender. Some will require more than others. All borrowers will receive a dedicated personal funding manager though, who will ask about your needs to help you pick the right loan option. A funding manager may not be necessary for, say, a company that only offers MCAs, but Lendio is different. Lendio offers a large number of different loan types, making them one of the most versatile platforms in the industry. There’s also a bunch of different loan calculators on their website for all of the different types of loans.
Here is a list of loan types that Lendio has on offer — most are self-explanatory, though the website does explain each and every one of them:
- Credit Cards
- Business Lines of Credit
- SBA Loans
- Short term loans
- Business term loans
- Merchant Cash Advance
- Business Credit Card
- Equipment Financing
- Commercial Mortgage
- Accounts Receivable Financing
- Startup Loan
- Business Acquisition Loan
Lendio Business Loans Client Reviews
TrustPilot: 2,616 reviews, 92% ‘Excellent’, 6% ‘Great’ and only 2% ‘Bad’ — 4.9 / 5 trust score.
It is no easy job to find any negative reviews about Lendio, as the absolute majority of the comments are five-star ones. Here are some of the reviews:
“Everyone was very friendly and helpful. Ryan Schauss was very quick in responding to our needs. Thank you Lendio.”
“I know things got confused and crazy with all of this COVID-19. I am glad I trusted my instinct and stayed with Lendio. My company is going to come out of this crisis Stronger than when we went in.”
“Brandon, thanks for verifying the application was complete and thanks for submitting it, hopefully in time! You guys are doing a great job!”
Analysis of Client Reviews:
With 98% of all reviews on Lendio being positive, it is clear that the company is trustworthy and can deliver quick, efficient, and helpful service. A lot of the clients are impressed with the friendly customer service as well, with many different members of their team being praised for an excellent job on Trustpilot.
Lendio Website Review
Lendio’s website is extremely well designed. It’s not just aesthetically pleasing with great use of spacing, colors, and buttons, but it’s very neatly laid out. The menu buttons, for example, are clear, with all of the necessary things a customer might be searching for within them. One thing they do well is that it has a clear and separate page explaining each product they have. This sounds simple, but it’s neglected by many of its competitors.
There are also useful blog articles, Q&As, many different loan calculators and a clear place to sign up/sign in. The front page also clearly explains that they are the middleman with multiple lenders in which they compare — again, something that can be confusing for other companies who appear as if they are the ones lending the money but are not. Overall, this is a faultless website with great features and clear information.
Lendio Loan Compatibility
StartUp: 6 months in business is required, so this certainly doesn’t rule out early-stage ventures
Bad Credit: Credit must be satisfactory of 550, which is fairly low compared to some loaning platforms
Sole Trader: Accepted
Established Business: Quite limiting as only $500,000 available
Lendio Loan Short Review
Lendio is a great place to come for funding for all types of small businesses. It’s somewhat limiting, being capped at $500k and needing 6 months in business, but these are decently lengthy limitations.
Submit an Expedited Application to Lendio the link below.