Lendzi
Pros
- Competitive pricing for products offered
- No minimum credit score required
- Discover loan options without affecting credit score
- Available loans for startups with shorter business history
- Loan calculators and resources
Cons
- Multiple phone calls to go through when applying for a loan
- Short-term loans have high starting rates
- Requires $180,000 annual gross revenue
Overview
Lendzi is a direct loan provider and lending partner that has funded over $500 million worth of loans for small businesses. Founded in 2020 by a group of professionals who worked in the alternative lending market, Lendzi has become a well-reviewed provider on third-party review websites. They offer businesses term loans, credit lines, invoice factoring, and more with competitive rates.
Loan Details
Lendzi has seven loan product offerings and these vary in amount and term length. The loan amount starts at $5,000 and goes up to $500,000, but SBA loans can offer funding for as high as $5 million. Terms can be as quick as three months for merchant cash advances and capital loans. Equipment financing and long-term business loans can go up to 84 months.
Lendzi does not specify rewards and discounts for their products, but partner lenders may offer benefits such as prepayment discounts on business term loans. Borrowers should know that there is no formal hardship program that will let them skip payments. However, there is a chance that you can work with Lendzi depending on your circumstance.
Loan Fees, Rates, and Requirements
Lendzi works with several lenders to offer the products they have. Fees and interest rates will vary based on the loan option you choose. There are lenders that will charge late fees, origination fees, and prepayment penalties.
Rates
| Product | Interest Rate |
| Merchant Cash Advance | Factor rate starts at 1.10 |
| Business Line of Credit | Interest rate starts at 6.2% |
| Working Capital | Factor rate starts at 1.15 |
| Equipment Finance | 3.49 to 28% APR |
| Short-Term Loans | Starts at 29.9% APR |
| Long-Term Loans | 11.29 to 30.12% |
| SBA Loans | 6.5% average |
Requirements
The best candidates for funding are businesses with a minimum history of two years, a credit score of at least 650, and annual revenue of $1 million. However, Lendzi can also be lenient to their borrowers allowing businesses with any credit score to send an application. Bear in mind that business term loans and lines of credit are geared toward borrowers who have a FICO score of at least 625.
• Minimum Annual Revenue: $180,000
• Minimum Time in Business: 6 months
• Minimum Credit Score: Any
• Other requirements: Minimum 50% ownership
How to Apply for a Loan?
To start a loan application, go to Lendzi’s website and find the Get Funding Now button. During the application process, you can use the live chat feature or call 877-453-6394 for help. The initial online form does not require a hard inquiry so your credit score won’t suffer. You should indicate the amount of funding you need and provide your business name. You can enter an estimate for your gross monthly income and the length of time your business has been operating.
Next, they will ask where you will use the funds. On the drop-down menu, you will find choices such as inventory, payroll, marketing, import goods, equipment, remodeling, commercial real estate, refinancing, and many more. You can choose Other if none of these choices match your loan purpose.
Then, you need to provide your credit score. You will also be asked what industry your business belongs to. Lendzi can work with different types of businesses from telecoms to food and beverage shops.
The last part of the form will ask for your name, phone number, email, income, and zip code. After completing the form, Lendzi will provide the details of the sales representative who will call you. When you’re done with the initial call, you have to select a funding option. A hard credit check is run once the underwriting step commences. When your application is approved, you also need to notify your bank through a funding call that a certain amount will be transferred to your account. This may be required within less than 24 hours of the application.
Customer Support
Borrowers who need assistance with any of the services can call 18774LENDZI or fill out the online form on the website. There is also an online chat where you just need to provide your name and email to reach a representative. If you prefer email, you can send them a message at info@lendzi.com
Bottom line
Lendzi has over 75 partner lenders with a variety of loan products that can meet the requirements of different small businesses. If you need help reviewing the available options, Lendzi is a good platform. However, the mandatory calls may put off borrowers who want to do transactions online. There is also a limited number of tools for digital loan management from Lendzi. Businesses with a minimum annual revenue of $180,000 will find Lendzi a great start in their search for funding.
