Lendio vs. Fundible: Which small business lender is right for you?

Lendio and Fundible are online business lenders offering a suite of loan types and loan amounts. Small businesses can get loans into the millions of dollars from these brands. But Lendio stands apart from most competitors because of its extensive marketplace with over 75 partner lenders.

Fundible stands out because it offers small business financing directly or through partnerships. According to a spokesperson, it also accepts businesses with poor credentials as low as 450. Fundible aims to work with small businesses to find the best financing option. Let’s take a deeper look at what these brands have to offer.

Lendio vs. Fundible at a glance

Lendio and Fundible offer a wide range of small business loans. Their sheer number of loan options is unusual for fintech companies, though the exact loans each company offers differ.

While both lenders accept bad credit, more of Fundible’s loans keep the credit requirement low enough for bad credit borrowers than with Lendio. Yet Lendio compares over 75 lenders, providing you with the best options from its lender pool.

Lendio business loans

Lendio is a loan marketplace with over 75 lenders that can take your application and use your credentials to prequalify with a lender. You can choose from a business line of credit, merchant cash advance, term loan, equipment financing or three different SBA loans.

If you have less-than-desirable credit, you could go for a merchant cash advance with a personal credit score requirement of 500. Its other business loans and lines of credit have a minimum personal credit score requirement of 600.

You can get terms up to 10 years if you choose its term or SBA loans. Many online lenders focus on short-term loans of two years or less, making Lendio stand out for repayment flexibility.

Pros

• 75+ partnering lenders
• Low starting rates
• Low revenue requirements

Cons

• Doesn't offer its own loans
• 2 years of experience for some loans
• May charge origination fees

Fundible business loans

Fundible is a fintech company offering business loan products either directly or through lender partnerships. You can get a business term loan, line of credit, equipment financing, SBA loans, invoice financing, invoice factoring or bridge loans.

You can qualify for most of its small business loans with a personal credit score in the 500s. A spokesperson also stated that it can accept scores as low as 450, though businesses might be limited in loan options. Fundible’s term loan and SBA loans up the requirement to a 650 credit score minimum.

Fundible charges interest differently across its loans — either as simple interest or a monthly fee. Simple interest means that the interest rate doesn’t factor in the annual cost of borrowing or business loan fees. And a monthly fee is a percentage that’s multiplied by the amount you owe for that month. In consumer lending, lenders are required to show annual percentage rates (APRs), which give customers an idea of the annual cost plus loan fees.

Pros

• Accepts bad credit
• High loan amounts
• Instant line of credit loans

Cons

• Confusing interest rate charges
• May charge additional fees
• May use lending partners

How to choose between Lendio and Fundible

Lendio and Fundible are similar in that they offer a wide variety of loans that cater to your small business’s funding needs. Yet the exact options and standards to apply vary from loan to loan.

For bad credit borrowers, Lendio offers an MCA with a 500 personal credit score and a line of credit accepting a personal credit score of 600. Fundible offers a bit more variety: a line of credit, equipment financing, bridge loan, and invoice financing or factoring.

Fundible is also more flexible with its repayment terms, especially for its business line of credit, which offers terms from one to 10 years. Lendio sticks with terms of up to two years for its line of credit and merchant cash advance and five years for equipment financing. Its term and SBA loans go up to 10 years.

Choose Lendio for equipment loans for startups

Lendio is ideal for equipment loans if you’re just starting your business because it accepts businesses without any experience. But, you do have to meet its annual revenue requirement of $50,000.

Compared to most equipment lenders, this is a low revenue amount, as most require $100,000 or more in annual revenue. Work with a representative on what documents you need to show your expected revenue, especially without any time in business. You’ll also need a 650 credit score to be considered.

Fundible isn’t far off in terms of qualifying for an equipment loan, though. You can apply with at least six months in business and $96,000 in annual revenue. It also takes credit scores down to 500.

Choose Fundible for SBA loan for startups

Fundible is ideal as an SBA lender for startups because you can apply with one year in business. You will need strong credentials in other areas of your business. Those include a personal credit score of 650 or higher and $250,000 in annual revenue, according to a spokesperson.

For SBA loans, Lendio offers the lowest eligibility requirements for credit and revenue. Its SBA loans accept a 600 personal credit score and $96,000 in annual revenue. But you’ll need two years in business to qualify.

Alternatives

If loans from Lendio or Fundible don’t quite fit what you need, you could try these options:

SMB Compass

SMB Compass is a fintech lender offering a variety of business loans, including alternative small business financing like invoice financing, purchase order financing, SBA loans and asset-based lending. It’s also known for low starting interest rates, from 5.25 percent to 15 percent, depending on which loan you choose.

Kiva

If you don’t qualify because of poor credit or you’re a startup, consider an alternative lender like Kiva. Kiva is a peer-to-peer lending and crowdfunding platform that allows you to raise funding from individual investors. You pay the lenders back with no interest attached to the loan, but you need to raise funds from your network of friends and family before going public on the platform.

Business credit cards

Business credit cards are an ideal option for businesses just starting out or needing to build credit. Most business credit cards let you earn rewards like points that you can redeem for business travel. Most cards also come with an introductory offer, giving you more points or cash back if you spend a certain amount within a period, like 90 days, or an introductory APR.

Additionally, if you pay the card balance in full monthly, you won’t be charged interest.

SBA loans

The Small Business Administration started the SBA loan programs to help businesses that get edged out of traditional lending with funding. Because the SBA partially backs SBA loans, the idea is that borrowers should qualify with more relaxed lending criteria.

However, lenders set their own criteria and tend to keep it strict because these loans offer competitive interest rates and repayment terms. Enter SBA microloans and Community Advantage loans.

SBA microloans are offered through approved microlenders, with loans up to $50,000. Community Advantage (CA) loans are offered through multiple types of lenders approved for this specific lending opportunity. Approved lenders have a mission to serve disadvantaged communities like low-income areas. CA loans can lend up to $350,000.

Bottom line

Lendio and Fundible offer a variety of loans, and both are accepting of bad credit borrowers. With bad credit, you’ll likely find more loan options with Fundible. Fundible is also ideal if you’re looking for an SBA loan since it offers the lowest time in business and revenue requirements. But if you have fair to good personal credit, Lendio has several options with higher terms of up to 25 years.

Because both lenders differentiate in the specific criteria to be eligible for each loan, you’ll want to compare their loan offers. Then, you can easily see which lender will give you the best terms and lowest borrowing cost.

Frequently asked questions

• Is it easy to get approved with Lendio?

  How easy it is to get approved for a business loan through Lendio depends on which loan you apply for. Lendio offers a variety of business loans through a marketplace of 75 lending partners — all through one application. In terms of qualifications, you can get a merchant cash advance with three months’ time in business and a 500 credit score. Its line of credit also accepts six months in business and a 600 credit score. But you need two years in business and a 600 credit score to apply for its SBA loans.

• What credit score is required for an SBA loan?

  Lenders set their own credit qualifications for SBA loans. Many tend to keep it high because of the competitive nature of SBA loans, which provide low interest rates and long repayment terms. For example, you can get SBA loans through Lendio with a 600 personal credit score and through Fundible with a 650 credit score.

• How can I get a loan for my startup business?

  You can get startup business funding by researching lenders that accept your business’s current financial status. Only a few lenders accept businesses with no time in business or revenue under $100,000, for example. If you don’t meet the requirements, you could choose to raise the money through crowdfunding or investors. You could also apply for business grants, which require you to compete with other businesses for the cash award.