At a Glance
Rating Breakdown
About Lendio
Lendio has been running since 2011 out of Lehi, Utah, and has grown into the largest online small business lending marketplace in the US. Their network of 75+ vetted lender partners covers everything from MCAs with factor rates starting at 1.10 to SBA 7(a) loans up to $5 million. Over $12 billion funded to more than 350,000 businesses across every industry and deal size, from $500 microloans for solo operators to multi-million dollar commercial real estate packages. On the MCA side specifically, partner funders offer factor rates between 1.10 and 1.50, advance amounts from $5,000 to $500,000, and terms of 3-18 months with daily or weekly ACH. Lendio charges borrowers nothing. Their revenue comes from lender referral commissions when a deal funds. Lendio never funds anything from its own balance sheet. You fill out a 15-minute online application, and their matching algorithm analyzes your revenue, time in business, credit score, industry, and what you need the money for. It then routes your application only to lenders in the 75+ network that are likely to approve you, which cuts down on unnecessary hard credit pulls. You get a dedicated funding manager as a single point of contact through the whole process. Lendio handled more PPP applications during the pandemic than any non-bank entity, deploying over $8 billion in forgivable loans. On the MCA side, UCC filings and personal guarantees are handled by the individual funder partners, but Lendio's funding managers are trained to break down the real cost of an MCA versus a term loan or SBA product. They will steer you toward cheaper options when you qualify for them.
Key Features
75+ Lender Network
The network includes 75+ vetted lenders: MCA providers like Credibly and Clearco, traditional term lenders, SBA preferred lenders, and alternative funders that work with startups or low credit scores. A business doing $10K/month can get matched with a microlender. A business doing $500K/month can get matched with a syndicated MCA deal. All through one application. Lendio vets its lender partners through compliance audits, complaint reviews, and rate transparency requirements.
Smart Matching Technology
Lendio's matching algorithm pulls 30+ data points from your application: monthly revenue, time in business, personal credit score, industry code, and what you plan to do with the money. It scores your compatibility against every lender in the network and routes your application only to the ones likely to approve you, typically 3-8 matches. This targeted routing means fewer hard credit pulls hitting your report and faster turnaround. Most applicants get their first offer within 4-6 hours.
Multiple Product Types
This is what separates Lendio from MCA-only brokers: you can access MCAs from $5K to $500K, SBA 7(a) loans up to $5M, term loans from 1-5 years, revolving lines of credit, equipment financing, invoice factoring for B2B businesses, and startup loans for businesses with just 6 months of history. That range matters because a lot of business owners ask for an MCA when they actually qualify for a term loan or SBA product that costs half as much. Lendio's funding managers are trained to point you toward the cheapest option, not just the fastest one.
Free Service for Borrowers
Lendio charges you nothing at any stage. No application fee, no matching fee, no funding fee. They make money from lender referral commissions paid when a deal funds, typically 1-5% of the funded amount depending on the product type. That creates a natural alignment: Lendio needs you to fund and be satisfied enough to come back or refer someone else. They get paid only when you get funded.
Dedicated Funding Manager
You get a named funding manager, either in Lendio's Utah office or remote, who is your single point of contact from application through funding and beyond. They will break down the difference between MCA factor rates and APR on term loans, walk you through what daily versus weekly repayment actually looks like on your bank account, and help you understand the true total cost of each offer. For MCA products, they will disclose the effective APR equivalent, explain what a UCC lien means for your business, and tell you what happens if you need to refinance or renew before the advance is fully paid off.
How It Works
Quick Application
Takes about 15 minutes online. Basic business and financial info. No hard credit pull at this stage.
Lender Matching
Lendio's algorithm identifies the best-fit lenders from the 75+ partner network and sends your application directly to them.
Review Multiple Offers
You get multiple offers from different lenders, laid out side by side. Your funding manager walks you through each one.
Select & Fund
Pick the offer that works. Funding can happen as fast as 24 hours depending on which lender you choose.
What They Do
- MCA Brokerage
- Funder Matching
- SBA Loan Marketplace
- Term Loan Matching
- Equipment Financing Matching
- Line of Credit Matching
- Startup Loan Matching
Debt Types They Take On
- Merchant Cash Advance
- SBA Loans
- Term Loans
- Lines of Credit
- Equipment Financing
- Invoice Factoring
- Working Capital
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
Restaurant Chain Expansion with Blended Financing
Three-location pizza chain in the Salt Lake City area doing $180K/month combined. The owner needed $200K to open a fourth location. Banks wanted 2 years of financials from the new location before they would lend, which is a catch-22 since the location did not exist yet. Owner had a 680 credit score and 5 years of operating history across the existing three.
E-Commerce Inventory Financing Under Time Pressure
Amazon FBA seller, 8 months in business, doing $95K/month in deposits. Needed $80K in 48 hours to grab inventory from a manufacturer offering a time-limited bulk discount for a Prime Day flash sale. No assets for collateral. Owner's personal credit was at 620 from credit card debt that predated the business.
Pros & Cons
Pros
- The 75+ lender network is the largest in the MCA marketplace space, creating real competition that drives factor rates down by an estimated 5-12 points compared to approaching a single funder directly.
- Completely free for borrowers at every stage with zero platform fees, application fees, or hidden charges, and the lender referral commission model means Lendio is incentivized to get you funded at the best possible terms for repeat business.
- Unlike MCA-only brokers, Lendio's multi-product marketplace often reveals that a business qualifies for a significantly cheaper SBA loan or term loan instead of an MCA, potentially saving tens of thousands in financing costs that an MCA-only broker would never surface.
- The dedicated funding manager model provides genuine human guidance through a confusing landscape, with managers trained to explain the difference between factor rate and APR, the implications of UCC liens, and the real cost of daily vs. weekly repayment.
- The $12B+ funding track record and PPP processing experience demonstrates institutional-grade operations, compliance infrastructure, and lender relationships that smaller brokers simply cannot match.
Cons
- As a marketplace, Lendio does not control individual lender underwriting decisions or final terms, meaning an offer can change or be rescinded after initial approval if the lender's deeper review reveals issues not caught in the matching stage.
- Because Lendio covers all financing types from SBA to MCA, individual funding managers may have less specialized MCA market knowledge compared to dedicated MCA brokers like DAC or Fundshop who live and breathe factor rates daily.
- The matching algorithm routes applications to 3-8 lenders, and some of these lenders may perform hard credit pulls during underwriting, which can temporarily impact the business owner's personal credit score, especially if multiple pulls occur within a short window.
- Lendio's self-reported approval rates and satisfaction metrics should be taken with a grain of salt, as the platform only counts businesses that are matched and receive at least one offer, not the total number of applicants who may have been deemed unmatchable by the algorithm.
User Reviews (22)
handled my renewal and got me a lower rate
Took my first advance through Lendio a year ago — $50K at 1.30. Came back for a renewal once I was 60% paid down. My funding manager shopped the renewal across the network and beat my original rate. New advance was $65K at 1.22. Clean repayment history apparently counts for a lot with these lenders. The process was even faster the second time because my docs were already on file. In and out in 2 days.
great platform but the approval rates they advertise seem inflated
Lendio says they have high approval rates but I think they only count people who get matched with at least one lender. If the algorithm determines you're unmatchable, you never enter the stats. My buddy with $6K monthly revenue and a 480 credit score couldn't even get past the initial screening. Still, for businesses that meet the minimums ($10K/month, 6 months operating), the platform works well. I got $50K at 1.24 for my dry cleaning chain.
the $12B track record matters for credibility
I was nervous about using an online marketplace for business financing. But Lendio has funded $12B+ and processed PPP loans during COVID. That track record gave me confidence. Applied for my auto shop, got 4 offers within 24 hours. Picked $55K at 1.20 factor rate from a lender I'd never heard of, but my Lendio funding manager confirmed they were legit. $66K total repayment. Solid deal.
great marketplace but some lenders do hard pulls
Lendio's initial matching is a soft pull which is nice. But once my app hit the individual lenders, 3 of them did hard credit pulls during underwriting. That's 3 hard inquiries on my report in one week. My funding manager said most scoring models treat multiple pulls within 14 days as one inquiry but still... would've been nice to know upfront which lenders do hard vs soft pulls. Got $120K at 1.22 factor rate for my trucking fleet. Good deal overall.
the soft pull pre-qualification is underrated
I checked my eligibility through Lendio with zero impact on my credit score. Saw what I qualified for, compared the options, and decided to move forward. The soft pull meant I could shop around without any risk. Eventually took $90K at 1.22 for my gas station renovation. Daily ACH of $611. The whole experience was professional and transparent. Would recommend to anyone who wants to see their options without committing.
lendio actually saved me from taking an MCA
Went in thinking I needed an MCA for my pizza chain expansion. Lendio's funding manager ran my numbers and said I actually qualified for an SBA 7(a) loan at 7.75% APR. I had no idea that was even an option. The MCA would've cost me $65K on a $200K advance. The SBA loan costs about $38K total over 5 years. My funding manager saved me almost $30K by steering me to the right product. That's the value of a marketplace vs going to an MCA broker directly.
funded my carpet cleaning expansion in 2 days
Needed $25K for a new truck-mounted extraction unit. Applied through Lendio on Monday, had 4 offers by Tuesday morning, signed the contract Tuesday afternoon, money in my account Wednesday. $25K at 1.22 factor rate. $30,500 total repayment over 8 months. Daily debits of $191. Quick, clean, no drama. The only thing I'd change is making the offer comparison page more visual — it's a lot of numbers in a list.
MCA-specific expertise isn't their strong suit
Lendio covers everything — SBA, term loans, equipment, MCA, you name it. But that breadth means their funding managers aren't MCA specialists. My manager couldn't answer basic questions about holdback percentages vs fixed daily payments, or how stacking policies work across different funders. If you specifically need MCA expertise, a dedicated MCA broker like DAC might serve you better. Lendio is great for finding the RIGHT product type but not as deep on MCA-specific knowledge.
went in for MCA, left with a much cheaper term loan
tbh I didn't even know I qualified for a term loan. Was fully expecting to get an MCA at some insane factor rate. Lendio's funding manager checked my eligibility across all product types and I qualified for a $40K term loan at 12% APR over 24 months. Total cost about $45,200. An MCA at 1.30 for the same amount would've been $52K. I saved $6,800 because Lendio showed me a product I didn't know existed. My bakery thanks you.
free for borrowers which is unusual
The fact that Lendio doesn't charge borrowers anything is actually a big deal. Other marketplaces and brokers either charge application fees or tack on points. Lendio makes money from the lender referral commission. Got matched with 5 lenders for my contracting business. Ended up with $65K MCA at 1.26. The whole process from application to funding was 3 days. No hidden fees, no surprises on the contract.
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Important Merchant Cash Advance Disclaimers
- A merchant cash advance is not a loan. It is a purchase of future receivables at a discount. Factor rates, not APRs, are used to express the cost of capital. Effective APRs on merchant cash advances can range from 40% to over 350% depending on the term and factor rate.
- Repayment is typically collected daily or weekly via automatic ACH debits or a percentage of credit card sales. This means your repayment amount fluctuates with revenue but withdrawals occur every business day, which can strain cash flow during slow periods.
- Most MCA agreements require a personal guarantee from the business owner. In the event of default, the MCA provider may pursue the owner's personal assets, including bank accounts and property.
- MCA providers commonly file UCC-1 liens against your business assets. This lien may prevent you from obtaining additional financing until the advance is fully repaid and the lien is released.
- Merchant cash advances are not regulated by federal lending laws such as the Truth in Lending Act (TILA). State regulations vary widely, and some states have limited consumer protections for MCA products.
- Stacking multiple merchant cash advances (taking a second advance before the first is repaid) significantly increases the risk of default and can lead to aggressive collection actions including confessions of judgment in some jurisdictions.
- Zogby does not provide merchant cash advances or business financing. We are an independent comparison service. We do not fund advances, process applications, or guarantee approval on your behalf.
This page is informational, not financial or legal advice. Talk to a qualified professional before making any big money decisions.
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