Finding the right business loan as a contractor can feel like a second job. You already spend your days managing job sites, chasing down invoices, and keeping your crew productive. The last thing you need is to spend weeks applying to multiple lenders one by one, only to get rejected or receive offers you cannot compare side-by-side.
That is the problem Lendio was built to solve. As a loan marketplace rather than a direct lender, Lendio lets contractors submit one application and receive competing offers from more than 75 lenders in its network. For trade businesses that need capital fast and want to see their full range of options, this approach can save significant time and improve approval odds.
This review covers how Lendio works, what types of financing are available through the marketplace, who qualifies, what it costs, and where the platform falls short. The goal is to give you enough information to decide whether Lendio belongs in your financing strategy before you click apply.
Affiliate disclosure: TradeAppReviews.com earns a commission when readers obtain financing through links on this page. This does not affect our editorial independence or the accuracy of the information we publish. See our full disclosure policy.
What Is Lendio and How Does It Work?
Lendio is not a lender. That distinction matters, and it is one that confuses a lot of first-time applicants. When you apply through Lendio, you are filling out a single intake form that gets submitted to a curated network of more than 75 lending partners. Those lenders then review your application and return offers based on their individual underwriting criteria.
The result is a competitive marketplace. Instead of negotiating with one lender who has no incentive to sharpen its terms, you receive multiple offers and can compare them side by side. Lendio earns a referral fee from the lender when a loan is funded, which means the service is free to borrowers.
Founded in 2011 and headquartered in Salt Lake City, Lendio has facilitated more than $13 billion in small business funding across more than 300,000 businesses. The platform has built a network that includes regional banks, alternative online lenders, SBA-approved institutions, and specialty lenders focused on equipment or invoice financing.
For contractors specifically, this breadth of the network is valuable. A plumbing company that needs equipment financing will get routed to lenders that specialize in that product. An HVAC business that has strong revenue but a bruised credit score will still see offers from lenders with flexible underwriting, rather than getting a flat rejection from a single institution that applies rigid rules.
The Application Process
The Lendio application takes most business owners 15 minutes or less to complete. Here is what the process looks like from start to finish:
Step 1: Create your account. You provide basic information about your business, including your name, email, and business type.
Step 2: Complete the intake form. Lendio collects information about your business structure, time in business, annual revenue, and the loan purpose. You will also provide your Social Security Number for a soft credit pull, which does not affect your credit score at this stage.
Step 3: Review matched offers. Within minutes, Lendio’s algorithm surfaces lenders from its network that match your profile. You will see estimated loan amounts, rates, and terms — though final offers from individual lenders may differ.
Step 4: Select a lender and complete their application. When you choose an offer that looks promising, you move to that lender’s more detailed application. This typically requires bank statements (3–6 months), tax returns, and sometimes accounts receivable documentation.
Step 5: Receive funding. If approved, funding timelines depend on the lender and product type. Some alternative lenders fund within 24 hours. SBA loans require 30 days or more.
Loan Products Available Through Lendio
Because Lendio is a marketplace, the range of products available is broader than what any single lender offers. Here are the primary financing types contractors can access through the platform.
SBA Loans
The Small Business Administration backs loans issued through approved lenders, which dramatically reduces risk for the lender and results in lower interest rates and longer repayment terms for borrowers. SBA 7(a) loans, the most common type, can reach $5 million with repayment terms up to 10 years for working capital and up to 25 years for real estate.
The tradeoff is time. SBA loans involve extensive documentation and a government review process. Expect 30 to 90 days from application to funding. For contractors who plan ahead, an SBA loan is often the most affordable long-term financing available.
Business Lines of Credit
A line of credit functions like a credit card for your business. You are approved for a maximum credit limit and can draw from it as needed, paying interest only on what you use. For contractors, this product works well for managing cash flow gaps between job completion and invoice payment.
Lines of credit through the Lendio network range from $1,000 to $500,000, with rates that vary significantly depending on your creditworthiness and the specific lender.
Equipment Financing
Equipment loans are secured by the equipment itself, which means lenders can often approve contractors with lower credit scores than unsecured loan products require. The equipment serves as collateral. Terms typically run 1 to 5 years, and financing can cover trucks, diagnostic tools, HVAC equipment, lifts, and other capital assets.
Equipment financing through Lendio can fund up to $5 million for qualified borrowers.
Term Loans
Term loans are lump-sum loans repaid over a fixed schedule with a set interest rate or factor rate. Terms range from 1 to 5 years for shorter-duration alternative loans, and up to 10 years for bank or SBA products. Use cases include hiring additional crew, purchasing a work vehicle, or expanding to a new service area.
Invoice Factoring
Invoice factoring allows contractors to sell outstanding invoices to a third-party lender at a discount in exchange for immediate cash. If your business is owed $80,000 in unpaid invoices, a factoring company might advance you $72,000 to $76,000 immediately, then collect the full invoice amount from your clients.
This product is particularly relevant for general contractors and commercial HVAC businesses that work with net-30 or net-60 payment terms.
Lendio Eligibility Requirements
One of Lendio’s more significant advantages for contractors who are newer to business lending is its relatively accessible eligibility floor. Because Lendio aggregates multiple lenders with varying underwriting standards, the platform can surface offers for businesses that would be declined by a traditional bank.
The general minimum requirements to receive offers through Lendio are:
- Time in business: 6 months or more
- Annual revenue: $50,000 or more
- Credit score: 560 or higher (FICO)
These are not guarantees. Individual lenders in the network set their own criteria. A contractor applying for an SBA loan through Lendio will face stricter requirements than one applying for a short-term alternative loan. Credit score requirements for SBA products typically start at 650 to 680, and lenders will want to see at least two years of business operation.
That said, the 560 credit score floor and six-month minimum are meaningfully lower than what most direct lenders require. Contractors who have been in business less than two years, or who are rebuilding credit after a slow period, tend to find more viable options through Lendio than through a traditional bank application.
Eligibility disclaimer: Lendio’s platform requirements are minimum thresholds for receiving matched offers, not guarantees of approval. Individual lenders in the Lendio network set their own underwriting criteria, and approval depends on your full business and personal financial profile. Rates and terms vary by lender and your creditworthiness.
Lendio Pros and Cons
Our research, aggregated from contractor forums, review platforms including Trustpilot and Google Reviews, and industry analysis, surfaces a consistent set of strengths and weaknesses for the Lendio platform.
Pros
Single application, multiple offers. The core value proposition holds up in practice. Contractors report that submitting one intake form and receiving 4 to 10 competing offers saves them a week or more of individually researching and applying to lenders.
High approval rates. Because Lendio’s network includes lenders with a wide range of risk appetites, contractors with imperfect credit or limited business history often receive at least one viable offer. The platform’s aggregate fill rate is among the highest of any loan marketplace in the small business segment.
Broad product range. From SBA loans to invoice factoring to equipment financing, Lendio gives contractors access to products suited for specific needs rather than a one-size-fits-all loan.
No upfront cost. Lendio earns its revenue from lender referral fees. Borrowers pay nothing to use the marketplace.
Dedicated loan specialist. Lendio assigns a human loan specialist to guide borrowers through the process. Contractors who have complex situations or have never navigated business lending before report this as a genuine differentiator.
Cons
Some lenders in the network have mixed reviews. Lendio curates its network, but not every lender it works with has a stellar reputation. Contractors should review the specific lender independently before accepting an offer, paying particular attention to prepayment penalty clauses and automatic payment terms.
Short-term loans carry higher effective rates. The most accessible products in the Lendio network — short-term alternative loans — often carry factor rates that translate to effective APRs well above what a bank or SBA loan would charge. Our research found APR equivalents ranging from 20% to 99% for short-duration alternative products.
Not ideal for large SBA loans without preparation. While Lendio can connect contractors to SBA lenders, those lenders have their own application portals and processes. Experienced SBA borrowers with all their documentation ready may find applying directly to an SBA-preferred lender more efficient.
Soft credit pull becomes hard pull when you apply to a lender. The Lendio intake form uses a soft pull. However, when you select a specific lender and complete their application, most will conduct a hard inquiry on your credit. If you submit to multiple lenders, multiple hard inquiries can accumulate.
How Long Does Funding Take?
Funding timelines depend almost entirely on the product type, not the Lendio platform itself. Once you select a lender from your matched offers, that lender’s timeline takes over.
- Short-term alternative loans and lines of credit: As fast as 24 hours after the lender’s application is approved, often 2 to 5 business days in practice
- Equipment financing: 3 to 7 business days for most lenders
- Term loans from banks: 1 to 3 weeks
- SBA loans: 30 to 90 days, depending on loan complexity and volume at the lender
For contractors facing a genuine cash crunch — materials needed before a job can start, payroll coming due before an invoice clears — the fast-funding alternative lenders in the Lendio network provide access to capital that a bank simply cannot match on timeline.
Ready to see what you qualify for? Lendio’s application takes 15 minutes and a single form gets your application in front of 75+ lenders.
Check Your Rate on Lendio — No hard credit pull to see your options.
Lendio vs. Applying Directly to a Lender
The alternative to using a marketplace like Lendio is applying directly to a bank, credit union, or alternative lender. Here is how the two approaches compare in practice.
| Factor | Lendio Marketplace | Direct Application |
|---|---|---|
| Number of offers | 4–10+ simultaneously | 1 per application |
| Time to compare options | Minutes | Weeks |
| Hard credit inquiries | 1 per lender you select | 1 per lender you apply to |
| Human support | Dedicated loan specialist included | Varies by lender |
| SBA loan access | Yes, through network partners | Yes, directly |
| Niche products (invoice factoring) | Available | Requires finding a specialty lender separately |
| Cost to borrower | Free | Free |
The main advantage of applying directly to a lender is that you avoid Lendio’s network fee, which the lender passes along in the form of slightly higher rates in some cases. However, aggregated reviews from contractors suggest that the time savings and competitive pressure from multiple offers typically outweigh this consideration for borrowers who are not already working with a trusted bank relationship.
Who Is Lendio Best For?
Based on our research across contractor review data and industry reporting, Lendio delivers the most value for:
Contractors new to business lending. If you have never applied for a business loan before and are not sure what you qualify for, submitting one application and seeing real offers is a better starting point than guessing which lender to approach.
Businesses with less-than-perfect credit. The 560 credit score floor and six-month minimum time in business make Lendio accessible to contractors who are building or rebuilding their financial profile.
Contractors who need to compare options quickly. If you want to see whether a short-term loan, a line of credit, or equipment financing makes more sense for your specific situation, having all three types arrive simultaneously through a single application is genuinely useful.
Seasonal trade businesses. Contractors with irregular cash flow who may not qualify for a traditional bank loan can often find invoice factoring or short-term products through the Lendio network that match their revenue profile.
Lendio is a less ideal fit for contractors who already have established relationships with SBA-preferred lenders, those seeking large commercial real estate loans, or businesses with revenue above $2 million that have enough history to qualify for institutional financing on their own.
Customer Reviews: What Contractors Are Saying
Aggregated from Trustpilot (4.8 stars, 7,000+ reviews), Google (4.6 stars), and the Better Business Bureau (A+ rating), Lendio’s customer review profile is notably positive for a financial services marketplace.
Commonly cited positives:
- Speed of the initial matching process
- Quality and responsiveness of assigned loan specialists
- Receiving offers when other lenders declined them outright
- Clarity of the comparison interface
Commonly cited negatives:
- Frustration when the initial soft-pull estimate differs materially from final lender offers
- Some lenders in the network described as pushy or aggressive in follow-up
- Confusion about which stage of the process involves a hard credit pull
Contractors in HVAC, electrical, and general contracting forums report using Lendio primarily for equipment financing and lines of credit, with SBA loan usage more common among established businesses with 5+ years of history.
Frequently Asked Questions
Does Lendio hurt your credit score?
The initial Lendio intake form uses a soft credit inquiry, which does not affect your score. When you select a specific lender from your matched offers and proceed with their application, that lender will typically conduct a hard inquiry. Multiple hard inquiries from different lenders within a short window are often treated as rate-shopping by credit bureaus and may have minimal impact, but this depends on your credit profile.
Does Lendio work for startups?
Lendio’s minimum requirement is six months in business. Businesses with less than six months of operating history are unlikely to receive offers through the platform. Contractors in their first year may find limited offers, primarily in short-term and high-rate products.
What is the maximum loan amount available through Lendio?
The maximum depends on the product type. SBA loans can reach $5 million. Equipment financing through the network can also reach $5 million for qualified borrowers. Lines of credit top out around $500,000 for most borrowers.
How does Lendio make money if it is free to borrowers?
Lendio earns a referral fee from the lender when a loan is funded. This is disclosed on the platform. In some cases, lenders may factor this fee into their pricing, which is worth comparing against direct lender rates when evaluating final offers.
Is Lendio legitimate and safe to use?
Lendio is an established marketplace founded in 2011 with an A+ BBB rating and strong third-party review profiles. The platform uses industry-standard data encryption. Providing personal and financial information is required to match with lenders and is standard practice for any lending platform.
Can a contractor with a tax lien still get funded through Lendio?
Some alternative lenders in the Lendio network will work with borrowers who have tax liens, depending on the amount and status of the lien. A tax lien does not automatically disqualify an application, but it will limit the range of lenders willing to make an offer and will typically result in higher rates for those that do.
Final Verdict: Should Contractors Use Lendio?
Lendio is the closest thing the small business lending market has to a genuine one-stop shop, and for most contractors exploring financing for the first time, it is a logical starting point.
The platform’s strengths are real: a single application, genuine competition among lenders, broad product coverage, and one of the more accessible eligibility floors in the market. For a contractor who has been in business six months, pulls $60,000 in annual revenue, and has a 580 credit score, Lendio is likely to surface at least one viable offer where a direct bank application would produce nothing.
The honest caveat is that speed and access come at a price. The short-term alternative loan products that Lendio’s network makes most accessible to lower-credit borrowers carry high effective rates. If your financial profile is strong — two or more years in business, $150,000+ in revenue, 680+ credit score — you may receive better terms by applying directly to an SBA-preferred lender or a reputable direct lender like OnDeck.
For everyone else, Lendio is worth the 15 minutes.
APR ranges through the Lendio network typically run from 6% for SBA-backed products to 99% or more for short-term alternative loans. Rates and terms vary by lender and your creditworthiness. All loan products are subject to lender approval and eligibility requirements.
Get Matched With Lendio Lenders — One application, 75+ lenders, no upfront cost.
Affiliate disclosure: TradeAppReviews.com may receive compensation if you obtain financing through links on this page. Our editorial assessments are based on aggregated research, public reviews, and published lender data. We do not provide personalized financial advice. Consult a financial professional before making borrowing decisions.