To learn more about Fundera vs Lendio and decide if either is right for your needs, please continue reading:
Fundera by NerdWallet and Lendio are leading business loan marketplaces. These platforms seamlessly link businesses with various lending products from diverse lenders. Fundera was founded in 2013 and acquired by NerdWallet in 2020, further solidifying its position in the financial marketplace.
Whether personal or business loans, these marketplaces provide access to various funding options for varying needs. But how do they differ, and which one is better for your small business needs?
This guide examines the distinctions between Fundera and Lendio, exploring their unique offerings and helping you make informed decisions for your financial needs. Specifically, we’ll answer these questions and more:
Fundera by NerdWallet is a small business lending marketplace that connects borrowers with a wide range of financing options. The platform provides access to business financing from a network of trusted lenders, including SBA loans and invoice financing.
Fundera works by allowing small business owners to submit a single application and receive personalized loan offers from multiple lenders, establishing a connection between borrowers and potential lenders. The application process typically involves providing business and personal information, as well as required documentation for pre-approval.
This streamlines the loan application process and allows borrowers to compare different financing options to find the best fit for their business needs. Fundera also provides guidance and support throughout the loan application process, helping small business owners navigate the complexities of securing funding for their ventures.
Fundera also offers some startup business loan options. Overall, Fundera simplifies the lending process for small businesses and provides access to a diverse range of financing solutions.
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Cons:
Lendio is a business loan marketplace that connects borrowers with a wide range of loan options. Small business owners can access Lendio’s network of lenders to find diverse loan products and amounts that suit their needs.
Whether for personal or business loans, Lendio offers term loans and other lending services to cater to different financial requirements. Essentially, Lendio simplifies the process of finding and obtaining a loan by providing a centralized platform where borrowers can explore various lending options and connect with potential lenders. Customers often praise the speed of the funding process, with loans secured in less than 24 hours. This can ultimately save time and effort for individuals and businesses seeking financing.
Pros:
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Fundera and Lendio offer access to many similar business loans. Let’s review how they compare.
| Company | Max Loan Amount | Terms | Interest Rate | Funding Time |
|---|---|---|---|---|
| Fundera | $600k | 1 – 5 years. | 7% – 30% | As soon as one day |
| Lendio | $5k – $2 million | 2 – 10 years | Starting at 6% | As soon as 24 hours in some cases |
Business term loans are financing provided by banks or financial institutions to businesses for a specific period, typically with a fixed interest rate. These loans are often used for long-term investments, such as purchasing equipment, expanding operations, or covering other significant expenses. Business term loans offer a lump sum of cash with a fixed repayment term and interest rate. Businesses repay the loan in regular installments over the agreed-upon term.
| Company | Max Amount | Terms | Interest Rates | Speed |
|---|---|---|---|---|
| Fundera | $250k | 3 – 18 months | Starting at 10% | As fast as 1 day |
| Lendio | $2.5k – $500k | Up to 18 months | 8%-36% | 3-10 business days |
Short-term business loans are designed to provide quick access to funds for immediate business needs. They typically have a shorter repayment period, ranging from a few months to a year. They are ideal for businesses that need to cover short-term expenses, such as inventory purchases, equipment upgrades, or bridging cash flow gaps. Short-term business loans often have a faster application and approval process than traditional bank loans.
| Company | Credit Limits | Terms | Interest Rates | Funding Time |
|---|---|---|---|---|
| Fundera | $10k – $1 million | 3 – 18 months | 7% – 25% | Possible within 24 hours |
| Lendio | $1k – $500k | 1-2 years | 8%-24% | 1-2 weeks |
A business line of credit is a flexible financing option similar to a credit card that allows businesses to borrow up to a specific credit limit. It can be used for various business expenses, such as purchasing inventory, covering payroll, or managing cash flow. Interest is only paid on the amount borrowed, making it a cost-effective solution for short-term financing needs.
| Company | Max Loan Amount | Terms | Interest Rates | Funding Time |
|---|---|---|---|---|
| Fundera | $5.5 million | 10-25 years | Prime + 2.75% – 4.75% | Several weeks |
| Lendio | Up to $5 million | 10-25 years | Prime+ 2.75% – 4.75% | Several weeks |
SBA loans are small business loans guaranteed by the Small Business Administration (SBA). They are designed to help small businesses access financing with favorable terms, such as lower interest rates and longer repayment terms. An SBA loan is typically used for purposes like starting a new business, purchasing real estate, or expanding an existing business. These loans are a valuable resource for small business owners looking for affordable financing options.
| Loan Provider | Max Amount | Terms | Interest Rates | Funding Time |
|---|---|---|---|---|
| Fundera | Up to 100% of the equipment price | 5 – 6 years | 4% – 40% | As fast as 2 days |
| Lendio | $5k – $5 million | 1-5 years | Starting at 7.5% | As soon as 24 hours in some cases |
Equipment financing is a business loan used to purchase new or used equipment. It allows businesses to acquire the necessary equipment without paying the total cost upfront. The equipment itself serves as collateral for equipment loans, making it easier for businesses to qualify. This type of financing can help businesses preserve cash flow and maintain a competitive edge.
| Company | Advance Amount | Terms | Rates | Funding Time |
|---|---|---|---|---|
| Fundera | Up to $500k | Daily or weekly draws | Factor rate of 1.1 – 1.5 | As fast as 1 day |
| Lendio | $5k – $2 million | Up to 2 years | Starting at 18% | As soon as 24 hours in some cases |
A merchant cash advance is a financing option for businesses in which a lump sum of money is provided in exchange for a percentage of future credit card sales. It is not a loan but rather a cash advance based on the business’s future revenue. Merchant cash advances can be a quick and flexible way for companies to access capital, but they often come with higher fees and interest rates.
| Company | Max Advance Amount | Terms | Rates | Funding Time |
|---|---|---|---|---|
| Fundera | 100% of invoice value | Until customer pays | 3% processing fee + factor fee each week until paid | Possible within 24 hours |
| Lendio | Up to 90% of receivables | Up to 1 year | Starting at 3% | As soon as 24 hours in some cases |
Invoice factoring is a type of financing in which a company sells its accounts receivable to a third-party company at a discount. This gives the business immediate cash flow rather than waiting for customers to pay their invoices. The factoring company then collects customer payments, allowing the business to focus on operations and growth.
To qualify for a business loan through Fundera, business owners must meet certain requirements. You’ll typically submit personal and business information, such as bank statements. These requirements vary depending on the loan product and lender, but generally include:
To increase their chances of approval, business owners should have a good credit score, stable business revenue, and a solid business plan. Meeting these qualifications can help secure the funding needed to grow and sustain their business.
Fundera’s interest rates and fees vary depending on the loan product and lender. However, here are some general interest rate ranges and fees associated with Fundera’s loan products:
It’s essential for business owners to carefully review the terms and conditions of each loan product and lender to understand the associated interest rates and fees. This ensures they are fully aware of the costs involved and can make informed decisions.
Fundera’s funding speed varies depending on the loan product and lender. However, here are some general funding speed ranges:
Fundera’s funding speed is ideal for business owners who need quick access to funds to cover unexpected expenses or take advantage of new opportunities. This flexibility can be crucial for maintaining business operations and seizing growth opportunities.
To qualify for a business loan through Lendio, business owners generally need to meet the following criteria:
It’s important to note that these requirements can vary depending on the lender and the specific loan product. Meeting or exceeding these qualifications can enhance the likelihood of loan approval and may result in more favorable terms.
Lendio’s interest rates and fees vary based on the loan product and lender. General ranges include:
Business owners must carefully review the terms and conditions of each loan product and lender to understand the associated interest rates and fees. This ensures they are fully aware of the costs and can make informed decisions.
The time to funding through Lendio varies depending on the loan product and lender. General timelines include:
Lendio’s funding speed is ideal for business owners who need quick access to funds to cover unexpected expenses or take advantage of new opportunities. This flexibility can be crucial for maintaining business operations and seizing growth opportunities.
Lendio and Fundera share some similarities, which is why some small business owners find it challenging to choose between them. Each platform provides dedicated loan specialists. Here are some ways both platforms are alike.
Lendio and Fundera are lending marketplaces that connect small businesses with various loan options from different business lenders, including alternative lenders. These platforms provide a one-stop shop for business owners to compare and apply for loans, saving them time and effort researching and reaching out to individual lenders.
Lendio and Funder each provide access to a wide range of small business loan options, making it easier for entrepreneurs to find the right financing for their needs. Both platforms offer various loan types, including SBA loans, business lines of credit, equipment financing, and invoice factoring.
Additionally, they cater to businesses of all sizes and industries, ensuring that options are available for everyone. With their user-friendly platforms and streamlined application processes, Lendio and Funder make it convenient for small business owners to explore and secure the funding they need to grow and succeed.
Both marketplaces utilize a diverse network of online lenders to offer small businesses financing options. By partnering with various lenders, they can provide different types of loans.
This diverse network allows businesses to find the best financing solution for their needs and financial situation. Additionally, it gives businesses access to competitive rates and terms, ultimately increasing their chances of securing the funding they require to grow and succeed.
Fundera and Lendio both strive to simplify the borrowing process for small businesses by offering a streamlined application process. They understand the challenges borrowers face when seeking funding and aim to provide a user-friendly experience that saves time and reduces frustration.
Both platforms allow borrowers to fill out a single application and then match them with a diverse network of lenders, increasing their chances of finding the right financing option. By streamlining the application process, Fundera and Lendio make it easier for borrowers to access the funding they need to grow and succeed.
While they have much in common, the two platforms have some critical differences. One significant difference is that Lendio offers a broader range of loan products, including commercial mortgages and business acquisition loans.
Additionally, Lendio has a more extensive network of lenders, giving business owners access to more potential loan options. It also means there are more options for small business owners with poor credit, as the loans typically have a lower minimum credit score requirement.
On the other hand, Fundera prides itself on providing personalized, one-on-one assistance to help business owners navigate the loan application process. Overall, the main distinction between the two platforms lies in the variety of loan products offered and the level of personalized support provided to borrowers.
Both Fundera and Lendio offer a streamlined online application process. They connect borrowers with a network of lenders, providing multiple loan options, including personal and small business loans. Both aim to make the loan process quick and easy.
Applicants can access various funding options through both platforms. Fundera and Lendio’s lending marketplaces provide diverse loan products. Borrowers can explore different loan amounts and financing options to suit their needs.
Both marketplaces connect applicants with direct lenders in their network. Small business owners can compare loan offers from various lenders on one platform.
Fundera and Lendio both receive primarily positive customer feedback. Customers appreciate the wide range of loan options. Both companies are Better Business Bureau (BBB) accredited with an A+ rating, contributing to their trustworthiness.
Fundera has received positive reviews for its user-friendly platform, helpful customer service, and wide range of funding options. Customers appreciate the ease of comparing loans and the transparency of the application process.
However, some negative reviews mention high interest rates, strict qualification requirements, and slow funding times. Despite this, many users still find Fundera a valuable resource for small business financing.
Lendio Trustpilot: 4.8/5 on over 20k reviews. Lendio BBB: 2.74/5 on over 100 reviews. Lendio has a number of complaints registered with the Better Business Bureau, which users may need to consider.
Lendio has received positive reviews for its user-friendly platform, quick funding process, and helpful customer service. Customers appreciate the wide range of loan options and the ease of comparing offers. Lendio representatives are described as professional and responsive.
We sincerely regret any negative experiences and are committed to improving customer satisfaction.
However, some negative reviews mention high interest rates, lengthy application processes, and difficulties with communication. Some users have also reported issues with transparency and unexpected fees. Despite these criticisms, Lendio remains a popular choice for small business owners seeking funding options.
Yes, you can apply through both platforms simultaneously, as they work with multiple lenders. However, submitting multiple applications at once may impact your credit score.
While both platforms are solid options, they won’t be the right fit for every small business. Whether you applied and were declined or require a different loan option, many lenders are available for your business financing needs.
There are also other options for business loan marketplaces if you don’t want to do the time-consuming legwork of applying to individual lenders. Our lender network here at UCS provides access to the following small business loans:
Fundera offers a streamlined application process and personalized guidance, while Lendio boasts higher approval rates and a wide range of funding options. Ultimately, your decision should be based on what suits your business needs best. So, take a moment to reflect on the key factors that matter most to you — whether it’s ease of application, borrowing amounts, personal credit score requirements, or customer reviews — before making your choice.
You can access our full Fundera review for more information about the platform. We rated it a 3.8 out of 5. In our Lendio review, we rated the company a 4.3 out of 5. While Lendio has the higher rating, the decision comes down to your unique preferences.
Contact us if you have more questions about your funding options or if you want to apply for a small business loan. Our alternative funding experts can help you find the best loan options for your needs.
Disclaimer: The Fundera by NerdWallet trademark is owned by NerdWallet Inc., and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from NerdWallet Inc.
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