Getting financing for your small business can be a major hurdle, but online lending marketplaces like Lendio and Fundera aim to make it easier. These platforms connect you with multiple potential lenders to save you time applying individually.
But how exactly do Lendio and Fundera stack up when it comes to loans, requirements, costs, and more? This in-depth guide examines the key differences between the two to help you determine which may be better for your small business borrowing needs.
A Brief Comparison Table
| Category | Lendio | Fundera |
| Founded | 2010 | 2015 |
| Location | South Jordan, UT | New York, NY |
| Lenders Network | 75+ lenders | 130+ lenders |
| Loan Amounts | $5,000 to $5 million | $5,000 to $500 million |
| Loan Types | Term loans, lines of credit, equipment financing, invoice financing, SBA loans, CRE loans, nonprofit loans | Term loans, SBA loans, invoice factoring, lines of credit, equipment financing, CRE loans, nonprofit loans |
| Requirements | 6+ months in business, $75K+ revenue, 580+ credit score | 1+ year in business, $50K+ revenue, 600+ credit score |
| Costs | No platform fees, lender fees apply | No platform fees, lender fees apply |
| Application | 10-minute application, 1-2 day decision | 2-3 minute application, 24 hour decision |
| Support | Phone, email, chat | Email, chat |
| Satisfaction | 4/5 stars on Trustpilot | 5/5 stars on Trustpilot |
Overview of Lendio
Founded in 2010 in South Jordan, UT
Lendio was established in 2010 with its headquarters in South Jordan, Utah. As a key player in the lending industry, its primary objective is to assist small business owners in finding the right loans for their needs. With more than a decade of experience, Lendio has built a reputation as a trusted partner for many businesses.
Facilitates financing from over 75 lenders
Rather than being a direct lender, Lendio operates as a bridge between borrowers and lenders. With connections to over 75 lending institutions, it offers a broad spectrum of loan options. This wide range ensures that businesses of various sizes and needs can find financing solutions tailored to them.
Focuses on small business loans, SBA loans, equipment financing, and credit cards
Lendio’s portfolio includes a variety of loan types, with a special focus on small business loans, SBA (Small Business Administration) loans, equipment financing, and business credit cards. These options cater to different business needs, from startup costs to operational expenses or capital-intensive investments.
Not a direct lender but a loan broker
It’s important to understand that Lendio doesn’t lend money directly to businesses. Instead, it serves as a facilitator or broker, connecting businesses to potential lenders. This model allows Lendio to present multiple options to borrowers, giving them the opportunity to choose the best fit.
Overview of Fundera
Launched in 2015 in New York, NY
Fundera, although newer to the scene than Lendio, made its debut in 2015 and is based out of New York. Its mission is to simplify the borrowing process for small businesses, ensuring that they get access to the right funds at the right time.
Connects with over 130 lenders
Fundera has an extensive network, partnering with more than 130 lenders. This wide range provides businesses with diverse choices and allows them to explore various financing options. With such an expansive network, Fundera can cater to a vast array of business needs and sizes.
Offers small business loans, SBA loans, lines of credit, and invoice financing
The lending solutions offered by Fundera encompass a broad range of financial products. These include traditional small business loans, SBA-backed loans, flexible lines of credit, and invoice financing (a method where businesses can borrow against unpaid invoices). This diversity ensures that businesses can find a solution that aligns with their specific requirements.
Also provides business credit reports and advice
Apart from its primary lending services, Fundera goes a step further by offering additional resources like business credit reports. This helps businesses understand their creditworthiness. Additionally, Fundera provides advice and insights, ensuring businesses make informed decisions about their financial futures.
Also Read: Comparison Between LPL Financial And Edward Jones.
Key Differences Between Lendio And Fundera
Now let’s explore how they compare across several key categories.
1. Types of Financing Offered
Both Lendio and Fundera offer a wide variety of financing options through their lender networks:
Lendio Loan Options
- Term loans
- Lines of credit
- Equipment financing
- Invoice financing
- SBA 7(a), 504 and microloans
- Startup loans
- Commercial real estate loans
- Nonprofit loans
Fundera Loan Options
- Term loans
- SBA 7(a) and 504 loans
- Invoice factoring
- Business lines of credit
- Equipment financing
- Commercial mortgages
- Nonprofit loans
- Startup loans
- Minority-owned business loans
The loan types are very similar, though Lendio has a slight edge in variety. But both provide plenty of borrowing options.
2. Loan Amounts
Here are the general loan amounts each platform offers:
- Lendio – Loan amounts from $5,000 to $5 million
- Fundera – Loan amounts from $5,000 up to $500 million
Fundera has the advantage when it comes to higher loan limit options through its lenders.
Eligibility and Requirements
To qualify for financing, here are the basic requirements each has:
Lendio Requirements
- At least 6 months in business
- Annual revenue of $75k+
- Personal credit score of 580+
- No current bankruptcies or tax liens
Fundera Requirements
- Minimum 1 year in business
- Annual revenue of $50k+
- Personal credit score of 600+
- No recent bankruptcies
The eligibility criteria are fairly similar. Fundera requires an extra 6 months in business while Lendio has a slightly lower minimum credit score.
3. Costs, Fees, and Repayment Terms
Here are the costs and fees associated with each lending marketplace:
- Lendio – No fees to use platform. Lender fees vary. Repayment terms from 3 months to 25 years.
- Fundera – No fees for loan offers. Lender fees apply. Repayment terms from 3 months up to 30 years.
The costs are comparable. Be sure to evaluate lender fees individually as you compare loan offers.
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4. Application Process and Speed
Lendio and Fundera aim to simplify the financing application process:
- Lendio – 10-minute online application, get offers in 1-2 days. Very streamlined.
- Fundera – Just 2-3 minutes to apply. Offers delivered in 24 hours. Also very quick.
Both make borrowing fast and easy without extensive paperwork.
Customer Support
Lendio and Fundera provide customer support via:
- Lendio – Phone, email, and online chat support available.
- Fundera – Email and online chat support offered.
Lendio provides the added option of phone support. But both offer multiple ways to get assistance.
5. Reviews and Ratings
Here’s an overview of customer satisfaction with each marketplace:
- Lendio – 4 out of 5 stars on Trustpilot based on almost 1,500 reviews. Positive feedback on great customer service.
- Fundera – 5 out of 5 stars on Trustpilot based over 250 reviews. Users praise the fast process and helpful support.
Both Lendio and Fundera earn very high satisfaction ratings, with Fundera edging out Lendio slightly. Users report great experiences with both platforms.
Also Read: Choose Between Triad Financial And 21st Mortgage.
Frequently Asked Questions (FAQs)
Still have some questions? Here are answers to a few commonly asked questions:
Yes, Lendio is a trusted lending marketplace used by over 250,000 customers. It is transparent about fees, keeps data secure, and has positive reviews from borrowers. Lendio simply facilitates financing but does not lend directly.
Yes, Lendio is considered a fintech company as it uses an online platform to provide financial services by matching borrowers with lenders. It utilizes technology to streamline and simplify the small business borrowing process.
The minimum requirements to qualify for a loan through Lendio are: At least 6 months in business, Annual revenue of $75,000, Personal credit score of 580. However, requirements can vary slightly by lender. Speak to a Lendio representative for details.
No, Lendio does not charge any fees for its service. However, the individual lenders you get matched with will likely charge interest rates and origination fees that vary. Be sure to review the full costs of any loan offer.
Let me know if you need any clarification or have additional questions about Lendio and Fundera!
Also Read: Differences Between Westlake Financial And Credit Acceptance.
Final Thought
When choosing between Lendio and Fundera, here are some key considerations:
- Fundera has higher maximum loan amounts available.
- Lendio offers phone support and a wider range of financing options.
- Fundera has slightly higher customer satisfaction ratings.
- Both make borrowing fast, easy, and transparent.
- For the smallest businesses, Lendio’s lower minimum revenue may be a better fit.
Each platform has strengths depending on your loan needs and priorities. Evaluate lender options, costs, and reviews closely to determine the better fit.