Lendio is a prominent business financing platform that offers a range of loan options to match customers with funders. Among their services, Lendio provides ERC funding, which has become a crucial source of financial assistance for businesses impacted by the COVID-19 pandemic.
In this article, we will take a closer look at Lendio’s ERC services, detailing the borrowing amounts, term lengths, interest rates, and other fees determined by the lender, as well as examining the application process and customer service.
Lendio’s ERC funding is designed to help businesses struggling with the economic consequences of the pandemic. ERC funding, or Employee Retention Credit, is a tax credit that is part of the CARES Act to help employers retain their workforce. Lendio is one of the few lenders offering ERC funding, making it a valuable resource for businesses looking to secure financial help during the pandemic.
To help businesses navigate the ERC application process and determine their eligibility, Lendio has established a straightforward process that allows businesses to apply online and receive support from experienced professionals.
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What is Lendio?
You already know that Lendio is a business financing platform, but did you know that they also offer ERC funding to help businesses struggling during the pandemic? ERC stands for Employee Retention Credit, a government program that provides tax credits to businesses that retain employees during the COVID-19 crisis.
Lendio’s ERC services are designed to help small businesses access the funds they need to keep their employees on payroll. The program is available to businesses that have experienced a significant decline in gross receipts due to the pandemic. Lendio’s team of experts can help businesses navigate the complex application process and maximize their tax credits.
Lendio’s ERC funding can be used to cover payroll expenses, including wages, health insurance, and retirement benefits. The program provides a tax credit of up to $5,000 per employee for the 2020 tax year and up to $7,000 per employee for the 2021 tax year. The amount of the credit is based on the number of employees and the amount of qualified wages paid during the designated period.
Overall, Lendio’s ERC services can provide much-needed relief to small businesses struggling during the pandemic. With their expertise and guidance, businesses can access the funds they need to keep their employees on payroll and weather the economic storm.
Loan Options
Looking for financing options? Check out the various loan options available through Lendio, including short-term loans, term loans, merchant cash advances, lines of credit, equipment financing, and ERC funding.
Lendio’s short-term loans can range from $2,500 to $500,000 with a term length of 1-3 years, with interest rates ranging from 8-36% and other fees determined by the lender. These loans are ideal for businesses that need immediate funding and have a short repayment period.
Business term loans are another option, with a borrowing amount of $5,000 to $2 million and a term length of 1-5 years. The interest rates for these loans start at 6%, and other fees are determined by the lender. This type of loan is suitable for businesses that need a larger amount of funding and have a longer repayment period, making it easier to manage their finances.
For businesses looking for funding to purchase equipment, Lendio offers equipment financing with a borrowing amount of $5,000 to $5 million and a term length of 1-5 years. Interest rates for this type of loan start at 7.5%, and additional costs are determined by the lender. Equipment financing is perfect for businesses that need to purchase expensive equipment and want to spread the cost over a longer period.
Lendio’s ERC funding is a recent addition to their loan options. ERC funding is designed to help businesses that have been impacted by the COVID-19 pandemic. This funding provides payroll tax credits to qualifying businesses that have experienced a decline in revenue. Lendio can help businesses determine their eligibility and assist with the application process.
Overall, Lendio offers a variety of loan options to meet the needs of businesses of all sizes and industries.
Loan Process
Once you’ve created an account and filled out an application, Lendio will pair you with eligible lenders within 72 hours. Loan terms will vary depending on the partner funder you’re working with, and charges may include interest, fixed fees, origination and administration fees, prepayment penalties, and other fees.
It’s important to carefully review and compare all loan offers before selecting one. Lendio offers general information about what loan terms to expect by product type. However, loan availability will depend on various factors, such as your credit score, the industry you work in, how long you’ve been in business, and the amount of revenue you take in.
Lendio suggests a 650 minimum credit rating, 12 months in business, and $50,000 or more in annual revenue for equipment financing. The lending process can be time-consuming and complicated, but Lendio removes a lot of the legwork borrowers would otherwise have to do with each lender.
Lendio can pair you with an SBA-approved lender, and its preferred lenders and SBA Express Loans can speed up the loan approval process. However, loan terms are not known until paired with a lender. Lendio’s sales and advertising transparency is generally good, but borrowers should be aware that Lendio’s loans may have prepayment penalties and fixed percentage fees that can disguise the true cost of borrowing.
Users found Lendio’s customer service helpful and responsive in most cases. Many customers found the centralized platform and its interface easy and intuitive to work with. However, some customers complained about being paired with lenders who were a poor match for their business and industry type, and some customers had to provide a lot more documentation than they were prepared for.
Lines of Credit
If you need more flexibility with your business financing, consider lines of credit through Lendio. Lines of credit can grant businesses more flexibility than traditional loans.
With Lendio, you can choose from revolving or non-revolving lines of credit, depending on your needs. Non-revolving lines of credit are nearly identical to revolving lines, but the credit is a one-time deal.
Revolving lines of credit function similarly to credit cards. You can use the credit as needed, and you only pay interest on the amount you borrow. You can draw funds from the line of credit as often as you need, and there are no restrictions on how you use the funds.
Non-revolving lines of credit work differently, as you receive a lump sum of money that you can use as needed. You then repay the loan in fixed installments, with interest being charged on the entire amount of the loan.
Lendio offers lines of credit with borrowing amounts ranging from $10,000 to $500,000. The interest rates and fees on the lines of credit vary depending on the lender, but Lendio provides information about what to expect on their website.
To qualify for a line of credit, you typically need a credit score of 650 or higher, at least 12 months in business, and $50,000 or more in annual revenue. Lendio also offers SBA lines of credit, which can be a good option for businesses that need more flexible financing options.
Overall, lines of credit can be a great option for businesses that need more flexibility with their financing. Lendio offers both revolving and non-revolving lines of credit, with borrowing amounts ranging from $10,000 to $500,000. However, the interest rates and fees can vary depending on the lender, so it’s important to do your research before applying.
With Lendio’s easy application process and responsive customer service, it’s worth considering their lines of credit options for your business financing needs.
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Customer Service
Lendio’s responsive and helpful customer service is one of the highlights of their business financing platform. They provide phone and email support, a dedicated funding manager, and a public customer service agreement. Customers appreciate the ease and speed of the application process. Many find the centralized platform and interface intuitive to work with. Users also find Lendio’s customer service helpful and responsive. Many report positive experiences with their assigned funding manager who is familiar with their business and situation.
However, some customers have reported negative experiences with Lendio’s customer service. Some complain about the heavy-handed sales pressure during phone conversations. Others have fallen through the cracks and received regular new offers that were never followed through. Some customers also complained about receiving hard inquiries on their credit when they were told there would only be soft ones. Additionally, some customers had to provide more documentation than they were prepared for and were paired with lenders that were a poor match for their business and industry type.
Despite some negative feedback, Lendio’s customer service overall appears to be responsive and helpful. The platform’s dedicated funding managers and centralized interface make it easy for customers to navigate the loan application process. While some customers have experienced issues with sales pressure and incorrect information, Lendio’s customer service team is generally proactive, transparent, and helpful. With Lendio’s broad range of loan options and network of funders, those seeking business financing can benefit from the platform’s streamlined application process and supportive customer service.
Pros and Cons
Moving on to the pros and cons of Lendio’s ERC services, there are several factors to consider.
On the positive side, Lendio provides a variety of loan options, including ERC funding, which can be helpful for businesses looking for ways to recover from the economic impact of the pandemic. Additionally, Lendio’s customer service is generally responsive and helpful, with phone and email support, a dedicated funding manager, and a public customer service agreement.
However, there are also some potential downsides to using Lendio’s ERC services. One issue to be aware of is that Lendio’s loans may have prepayment penalties and fixed percentage fees that can disguise the true cost of borrowing. Furthermore, some customers have reported being paired with lenders who were a poor match for their business and industry type, which can lead to frustration and wasted time.
Another potential drawback is that Lendio has received numerous complaints and is not currently rated by the Better Business Bureau. Additionally, Lendio has been warned by the Federal Trade Commission and SBA for misleading coronavirus relief marketing, which could be cause for concern for some borrowers.
Overall, businesses considering Lendio’s ERC services should weigh the pros and cons carefully and do their own research to determine if this is the right option for them. While Lendio can be a helpful resource for finding financing options, it’s important to be aware of the potential downsides and to make sure you understand the terms and fees associated with any loan offers you receive.
ERC Funding
Looking for funding to help your business recover from the pandemic? ERC funding is one option to consider.
Lendio offers ERC funding for businesses that have experienced a decline in revenue due to the pandemic. The ERC program is designed to help businesses retain employees and cover eligible expenses, such as rent, utilities, and payroll.
Lendio’s ERC funding options vary based on the lender, but they generally offer borrowing amounts of up to $10 million with interest rates starting at 3.75%. Loan terms can range from 1 to 5 years, and there may be additional fees determined by the lender.
Lendio’s application process for ERC funding involves creating an account, filling out an application, and receiving offers from eligible lenders within 72 hours.
It’s important to note that ERC funding is only available for eligible businesses that have experienced a decline in revenue due to the pandemic. The program is not available for businesses that have already received a PPP loan. Additionally, ERC funding may have certain eligibility requirements, such as having a certain number of employees or being in a certain industry.
Overall, Lendio’s ERC funding options can be a valuable resource for businesses looking to recover from the pandemic. However, it’s important to carefully review the terms and eligibility requirements before applying, as well as considering other funding options that may be available.
Conclusion
In conclusion, Lendio’s ERC services offer a variety of loan options for businesses seeking financial assistance during times of economic uncertainty. The borrowing amounts, term lengths, and interest rates are determined by the lender and may vary depending on the applicant’s qualifications.
Overall, Lendio’s application process is straightforward, and the customer service team is responsive and helpful. However, some customers may find the fees associated with borrowing through Lendio to be high.
Despite this, Lendio’s ERC services have received positive reviews from many satisfied customers, making it a viable option for businesses looking for alternative sources of funding.