One important distinction to make, though, is that Lendio doesn’t actually fund business loans. Instead, it’s a match-making service that pairs you with the most cost-effective options. Lendio is a loan marketplace that combines access to 75+ vendors into one online application that takes about 15 minutes to complete. 15 minutes is no time at all compared to the countless hours it would take to apply for each lender individually. Once you submit your application, you can explore all your options from each lender side-by-side with all the info you need to make the best decision for your business. However, there are other types of funding available for small businesses.
Lendio, OnDeck, and SmartBiz are our top recommendations if you’re looking for your standard loan with predictable monthly payments. OnDeck offers shorter payback periods with higher interest rates, but you can get your funds the same day. With term loans, you get a lump sum of cash at once and pay it off in weekly or monthly installments over a set period with interest. You can use these for just about anything, but they’re most suitable for large business purchases.
The average loan amount for microloans is about $13,000. They are available via nonprofit community-based organizations and are backed by the SBA. They’re a good option for companies that need a small loan void of usurious rates, with little-to-no borrowing history. An MCA could be a good option if you need a small amount of funding immediately and plan to pay it back quickly. Bad credit typically isn’t an issue with MCA’s and approval usually takes just a few hours.
We recommend using several communication channels, including email, chat, social media, and phone. They should also go through your options and walk through the entire process with you. Applying for a loan can be very confusing and overwhelming. So, you should be able to hop on the phone, atlcapbkself shoot an email, or start up a live chat session for help with anything along the way in a timely manner. You should also keep in mind that application volume, PPP loan priorities, and limited staff due to COVID may slow things down a bit, depending on which company you choose.
There are very legitimate lenders who ask for these very reasonable costs from the borrower upfront. The other aspect to consider is the legitimacy of the borrower. They want 100% financing with absolutely no risk on their part. Any serious sponsor with a loan request will get an attorney on board to review loan documents before signing anything or paying deposits to lenders.
Inventory or equipment financing is an option that allows you to get a loan to purchase inventory or equipment. The inventory or equipment purchased will typically serve as the collateral for the loan. If you’re approved, some of the fastest lenders can provide funding within 24 hours. Fora Financial can be a good fit for borrowers who may fall short of qualifying for traditional bank financing, or young but established small businesses looking for speedy financing. No prepayment penalties, account maintenance fees or inactivity fees. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research.
I hate the high rate, but BC helped outta a loop this time. Luis – we can’t vet lenders for you but we hope the tips in this article will help you do your own research to determine if you are dealing with someone legitimate. Vicki – we can’t comment on specific companies but we hope you’ll be able to use the resources in this article to come to a conclusion. I haved seen a lending company named geeyook services which is base in turkey.,.