You’ve reported your annual revenue, time in business, and credit score. You’ve provided bank statements, and you made it official by clicking “Submit” at the end of the Lendio application. If you’re anything like us, you may be refreshing your screen and wondering, “What comes next?”
We value transparency and giving business owners the power that comes from financial literacy, so we’re going to outline the steps to the best of our ability. “To the best of your ability,” you ask. “What does that mean?” Well, part of what makes our marketplace so special is that it relies on some pretty complicated tech to match you with the best options from our network of premium lenders. Because the experience is customized for each borrower, we can’t give a one-size-fits-all answer, but we can give you a general sense of what usually happens. So, where were we?
Step 1: Our Smart Application Matches You With Loans
After submitting an application, most borrowers will be matched with loan offers from our network of curated business lenders. Our tech analyzes your application and compares it against the 10+ loan products offered by the 75+ lenders in our network. In other words, our little internet robots do some pretty heavy administrative lifting to find you the loan offers you need as quickly as possible.
In some cases, your application may not be a current fit for one of our lenders. If that happens, we’ll set you up with tools that can help you achieve the financing you need now and help you make your business more appealing to lenders down the road. Our mission is to fuel the American Dream, so you’ll never hear us say, “Tough luck.”
Step 2: Funding Managers Provide Personal Attention and Expert Advice
“Every journey is a little different,” explains Kris Glaittli, Lendio’s Senior Director of Marketplace & RMT. For that reason, borrowers are then paired with funding managers, who are dedicated loan experts. After you’ve received your loan matches, you’ll probably receive a call from your funding manager. They’ll help you complete anything that’s missing from your application, and they’ll ask you some questions about your business.
This information will help your funding manager better understand your financing needs so they can point you in the direction of the best financing option for you. “We really do try and match the borrower’s needs so it creates a unique experience,” Kris says. This call also allows your funding manager to address any potential red flags in your application. If you switched bank accounts a few months back or have any lawsuits, the funding manager will try to address it and make the case to the lender on your behalf.
Step 3: Varies Based on the Lender
Once your funding manager has assessed your needs and helped you complete your application, the next steps vary from lender to lender. The order may change depending on the lender, but you can expect the following to (generally) happen:
- Your loan application will be submitted to the lenders
- The loan will go through the underwriting process
- You receive the loan offer from the lender
- You may have a phone call with the lender, called the merchant interview (if this happens, it’s usually right before funding)
Step 4: Receive a Decision
Finally, you’ll receive a decision from your lender. If you’re approved, you may receive funds in as little as 24 hours, depending on the loan type. If you’re denied, no sweat. You can still apply to other lenders without creating a new application. That’s the beauty of a marketplace.