Fundera vs. Lendio

Fundera and Lendio are two great lending marketplaces with a lot in common―including their ability to get you a solid loan offer.

Best for personal loans
  • pro
    Personal loans available
  • pro
    Many loans and lenders
Best for commercial loans
Lendio
Lendio
4.3 out of 5 stars
4.3
  • pro
    Real estate loans available
  • pro
    Variety of lenders and loans

We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure.

The bottom line: Fundera and Lendio are two of our favorite lending marketplaces. It's hard to go wrong with either one—we consider them two of the best options for finding solid business loans.

It's great that both lending marketplaces are wonderful, but which one is better for you? To help you decide, we’ll dig deep into Fundera and Lendio. We’ll break down what makes them similar (spoilers: they have quite a bit of overlap) and what differences set them apart (not many). We’ll help you figure out which is better for your needs―or at least help you feel comfortable with whichever one you choose.


Our top-rated lender: Lendio

Lendio partners with over 75 lenders, which improves your odds and efficiency to get the funding you need.

Qualifications:

Money Approach

$50k in revenue

Calendar Approach

6 mos. in business

Analysis Approach

560 credit score


Fundera vs. Lendio 101

Let’s start with the basics: Fundera and Lendio are both lending marketplaces. They are not direct lenders. Neither Lendio nor Fundera actually extend any loans (or other types of financing)―but they partner with lenders that do.

Fundera vs. Lendio

FunderaLendio
Lender typeLending marketplaceLending marketplace
Lending partnersAt least 17More than 75
Year funded20142011
Term loansIcon Check  DarkIcon Check  Dark
SBA loansIcon Check  DarkIcon Check  Dark
Lines of creditIcon Check  DarkIcon Check  Dark
Invoice financingIcon Check  DarkIcon Check  Dark
Merchant cash advancesIcon Check  DarkIcon Check  Dark
Equipment fundingIcon Check  DarkIcon Check  Dark
Commercial real estate loansIcon Close  DarkIcon Check  Dark
Personal loansIcon Check  DarkIcon Close  Dark
Other product recommendationsIcon Check  DarkIcon Close  Dark
Get a Loan

Data effective 5/31/22. At publishing time, offerings are current but subject to change. Offers may not be available in all areas.

But what does that mean, practically speaking? Well, when you fill out your application, Lendio and Fundera take that application and shop it around to their different lending partners.

With any luck, they’ll find a few lenders willing to approve you, and you get multiple loan offers to choose from. You’ll be able to compare things like loan types, loan amounts, and interest rates. Hopefully, you’ll find a loan offer that you like best. Then you just have to finalize the loan with that lender.

Whether you apply with Lendio or Fundera, here’s what your loan application process looks like:

  1. Submit an application with the lending marketplace.
  2. Wait for the marketplace to find lenders willing to fund you.
  3. Compare loan offers and choose your favorite.
  4. Finalize your loan application with your chosen lender.
  5. Get your working capital.
Megaphone
Why lending marketplaces?
Lending marketplaces are great for business owners because they let you compare offers and get the best possible deals―but without spending valuable time applying separately to a ton of lenders.
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Where Fundera and Lendio differ

Since they both operate as marketplaces, Lendio and Fundera have a lot in common. But before we cover those commonalities, we want to point out a couple of key differences that set them apart.

Fundera: Best for personal loans

Fundera is a business lending marketplace, but it can also help you get a personal loan to be used for your business. (In contrast, Lendio doesn’t offer personal loans.)

Why do some business owners use personal loans rather than business loans? Well, young businesses can have a hard time getting approved for funding. But if you’re applying for a personal loan, the length of time you’ve been in business probably won’t matter. Likewise, businesses that haven’t built up business credit might get rejected for business financing. But with personal loans, your business credit doesn’t matter―just your personal credit score.

Fundera funding options

Product
Min./max. loan size
Lowest listed rate
Repayment terms
Get a loan

Business line of credit

$10,000/$1 million

7%

3–18 mos.

Equipment financing

Up to 100% of equipment value

4%

5–6 yrs.

Invoice financing

Up to 100% of invoice value

3% processing fee + weekly factor fee

Until customer pays invoice

Merchant cash advances

Up to $500,000

1.1% factor rate

N/A

Personal loans

Up to $50,000

5.99%

3–5 yrs.

Term loans

Up to $600,000

7%

1–5 yrs.

SBA loans

$50,000/$5 million

8%

5–25 yrs.

Data effective 5/31/22. At publishing time, loan specifications are current but subject to change. Offers may not be available in all areas.

Of course, personal loans aren’t ideal for business, or everyone would use them. Personal loans have low maximum loan amounts, and they often have shorter terms and higher interest rates than business loans do.

Still, personal loans can be a valuable source of financing for some businesses. If you think that might be the path for you, then Fundera’s probably your lending marketplace. And who knows? You might get a better business loan offer than you expect.

Lendio: Best for commercial real estate loans

As we said above, both Fundera and Lendio offer many types of business financing, from term loans to accounts receivable financing. They can both meet many, many business needs. But Lendio offers one type of business funding that Fundera doesn’t: commercial real estate loans.

In fact, Fundera’s largest advertised term loans go up to $500,000. That’s not a bad-sized loan, but it won’t be enough for many large commercial purchases.

Lendio funding options

Product
Min./max. loan size
Repayment terms
Get a loan

Business line of credit

$1,000/$500,000

1–2 yrs.

Commercial mortgage

$250,000/$5 million

20–25 yrs.

Equipment financing

$5,000/$5 million

1–5 yrs.

Accounts receivable financing

Up to 90% of receivables"

Up to 1 yr.

Merchant cash advances

$5,000/$200,000

Up to 2 yrs.

Short-term loans

$2,500/$500,00

1–3 yrs.

Startup loans

$500/$750,000

Up to 25 yrs.

Term loans

$25,000/$2 million

1–5 yrs.

SBA loans

Up to $5 million

10–30 yrs.

Data effective 5/31/22. At publishing time, loan specifications are current but subject to change. Offers may not be available in all areas.

Lendio, on the other hand, can get you commercial mortgages that go as high as $5 million (with lengthy loan terms of up to 25 years).

Sure, Fundera could partner with real estate lenders in the future. But for now, if you need a commercial real estate loan, Lendio’s the clear choice.

What Fundera and Lendio have in common

Now that you’ve got an idea of what sets Fundera and Lendio apart, let’s dig more into what makes them similar. Heads up: it's quite a lot.

Both Fundera and Lendio partner with a bunch of lenders. They both have a slower funding time than direct lenders do (because matching you with offers takes time). And they both offer many types of loan products, including these:

  • Long-term loans
  • Short-term loans
  • Startup loans
  • Lines of credit
  • Invoice financing
  • Merchant cash advances
  • Equipment financing
  • SBA loans

In other words, Fundera and Lendio work pretty similarly. If you want to compare business loan offers, either one can help. And we’re comfortable recommending both of them.

Lending partners

Fundera and Lendio both partner with a number of business lenders, though Lendio’s website lists more partnerships than Fundera’s does.

For example, both Lendio and Fundera work with several of our favorite alternative lenders (also known as online lenders):

They also both have partnerships with some traditional lenders (banks and credit unions), including Chase and American Express.

The two don’t completely overlap, though. As far as we can tell, Lendio partners with several lenders that Fundera doesn’t, including Lending Club, StreetShares, and Bank of America. And Fundera has some partnerships that Lendio doesn't, such as Capital One.

Bullhorn
Application requirements
When you apply to Lendio or Fundera, they’ll look at things like your credit score, annual revenue, and time in business to match you with loan offers. Different lenders have different requirements. So even if your numbers aren’t ideal, it doesn’t hurt to fill out a 15-minute application.

So if there’s a specific lender you want to consider, you might want to make sure either Lendio or Fundera works with that lender. Or you can always apply to the lender directly and compare it to other offers from either lending marketplace.

How they make money

If you’ve never encountered a lending marketplace before (and many business owners haven’t), then you might wonder if marketplaces like Lendio and Fundera are, well, on the up-and-up. After all, if they’re not making interest on your loans, what incentive do they have to help you?

Well, we have good news: both Lendio and Fundera are perfectly legitimate.

Online lending marketplaces like Fundera and Lendio make money off of referral fees. You can think of it like a sales commission. They do some matchmaking magic to get you with the right lender, and when you get your loan, the lender pays the online marketplace that referral fee.

And don’t worry―that doesn’t mean that Lendio or Fundera will try to match you with any old loan. Think of this way: It’s in their best interest to get you to take out a loan (because that’s how they get paid). That means they need to match you with a loan that you can actually get and that you actually want.

They may not do a perfect job, and you may not love every loan offer you get. But you can generally assume that marketplaces like Lendio and Fundera are safe, legit ways to compare loan options.

Customer reviews

Both Lendio and Fundera have excellent customer reviews, though Lendio’s skew slightly higher.
On Trustpilot, Lendio has almost 19,000 reviews, averaging 4.8 out of 5.1 Fundera also averages 4.8 out of 5 from nearly 900 ratings on the same site.2 And for what it’s worth, both Lendio and Fundera have an A+ from the Better Business Bureau.3,4 

The two lending marketplaces have similar reviews. Both Fundera and Lendio reviews often praise specific loan reps, the quick funding turnaround, and the ease of the application process.

The few negative reviews for Lendio and Fundera complain about high interest rates on offers, lack of communication, and misleading reps.

Put simply, based on the high number of positive reviews, you’re likely to have a good experience with either Lendio or Fundera.

The takeaway

Lendio and Fundera by Nerdwallet are two lending marketplaces with a lot in common. Sure, there are some small differences: most notably, Lendio offers commercial mortgages while Fundera offers personal loans.

But both business loan marketplaces offer plenty of loan products from many lenders. They’re both reputable, well-liked companies.

So honestly, you should feel good about going with either Fundera or Lendio. They can both help you meet your cash flow needs just fine. We like them both, and we think you will too.

No matter which marketplace you choose, make sure you know how to compare your business loan offers with our guide to APR.

Related reading

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

Sources
1. Trustpilot, “Lendio.” Accessed May 31, 2022.
2. Trustpilot, “Fundera by Nerdwallet.” Accessed May 31, 2022.
3. Better Business Bureau, “Lendio, Inc.” Accessed May 31, 2022.
4. Better Business Bureau, “Fundera.” Accessed May 31, 2022.

Chloe Goodshore
Written by
Chloe Goodshore
Chloe covers business financing and loans for Business.org. She has worked with many small businesses over the past 10 years, from video game stores to law firms. Those years watching frustrated business owners try to sift through their many options gave her a passion for breaking down complex business topics. She wants to help business owners spend less time agonizing over their businesses so they can spend more time running them.
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