LendingTree Business Loans Review
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For small business owners, the right funding can make the difference between just getting by and achieving success. Whether you're a fresh-faced entrepreneur bursting with innovative ideas or a seasoned business pro looking to take your operations to the next level, finding the right business financing is important.
Thankfully, we live in an age where various loan providers have emerged to streamline this entire process, making it easier to secure the funding you need.
LendingTree Business Loans is one such example.
In this LendingTree Business Loans review, we’ll explore how the loans work, what types of loans are offered, how you can apply, and why LendingTree doesn’t charge any fees.
In this article
What is LendingTree?
LendingTree is an online lending marketplace established in 1996 and based in Charlotte, North Carolina. With over 25 years in the industry, LendingTree has served more than 110 million Americans and facilitated over $260 billion in funded loans.
LendingTree business loans provide access to hundreds of partner lenders, offering competitive financing options tailored to the unique needs of businesses. Borrowers can easily explore loan options, compare offers, and complete the application process without hidden fees. Its features include:
- Extensive lender network
- Competitive offers
- User-friendly interface
- Free loan requests
- Personalized recommendations
- Ongoing support
It serves as a platform for borrowers to connect with various lenders to explore and compare loan options, credit cards, deposit accounts, insurance, and other financial products. Its extensive network of over 300 LendingTree partners ensures that users receive competitive offers. By matching users with up to five lenders who compete for their business, LendingTree helps them find the best loan rates and terms.
Users can shop around for competitive rates and terms, utilizing tools for financing and comparative loan searches. The platform simplifies the process by allowing users to fill out a single, secure form in just five minutes. Instead of dealing with multiple lenders directly, users can trust LendingTree to handle their information safely.
LendingTree doesn't just stop at connecting users with lenders. It offers ongoing support, including free credit monitoring, budgeting insights, and personalized recommendations to help users save money and make informed financial decisions.
LendingTree has an A+ rating from the Better Business Bureau (BBB), although its user rating is an abysmal 1 out of 5. The company fares better on Trustpilot, with a 4.3-star rating.
Many Lenders Fund In 24-48 Hours. Start Your Request Today!
Get your small business funded fast! Go to the LendingTree® official site to compare 2024’s top online lenders and get offers.
Secure and Fast.
What are LendingTree business loans?
As the name suggests, LendingTree business loans are loans geared toward businesses.
Business owners can secure small business loans, typically ranging from $5,000 to $500,000 or higher. These loans cover various expenses such as payroll, inventory, equipment, and other operational costs.
Repayment terms vary widely, spanning from three months to as long as 25 years. Small business loans are available from both traditional banks and alternative online lenders.
How do LendingTree business loans work?
The process is pretty much the same whether you’re getting a business loan or a personal loan through LendingTree.
Here’s what you can expect to go through:
- Loan requests. Starting is a breeze! Users can submit their loan requests hassle-free. And guess what? It's all on the house—no fees or hidden charges here.
- Matchmaking. Once the request is in, it's time for the magic to unfold. LendingTree's matchmaking system swings into action, scouring its vast network of lenders to find the perfect fit. The company says you’ll have offers “within minutes.”
- The offer. Lenders come knocking with their best offers.
- Comparison galore. Now, it's time to dive into the offers and compare. Users can take their time sifting through the options and weighing the pros and cons until they find the perfect match. You’d want to examine the origination fee, late charges, and business loan prepayment penalties. Special emphasis should also be given to the repayment schedule — whether you’ll make monthly payments or bi-weekly.
- No strings attached. And the best part? There's no pressure to commit to any offer. Users are free to take their time, explore their options, and make a decision that suits them best.
Types of small business loans
Here are some of the most common types of small business loan products you can consider:
- Business term loans. These are lump sums that you pay back in fixed installments. Short-term loans are perfect for quick needs, while long-term ones are great for bigger investments.
- Line of credit. With business lines of credit, you borrow what you need and pay interest only on that amount. This is handy for managing fluctuating expenses or seizing unexpected opportunities.
- Equipment financing. Do you need some gear to power up your business? Equipment financing is your go-to. Get what you need, and let the equipment serve as collateral for the loan.
- Commercial real estate loans. Dreaming of your own business space? These loans are like keys to your kingdom, helping you secure that perfect spot. Just be ready for a bit more upfront investment.
- SBA loans. With low interest rates and long terms, they're perfect for big dreams and backed by the Small Business Administration.
- Microloans. Small but mighty, these loans are tailored for startups or those needing a little boost.
- Working capital loans. Need to keep things running smoothly? These loans are your lifeline for covering day-to-day expenses or unexpected gaps.
- Invoice factoring. Do you have unpaid invoices piling up? Turn them into quick cash with invoice factoring. Just be mindful of the fees, as factoring rates can go as high as 8.25%!
But wait, there’s more! There are a few additional ways to fund your business beyond traditional loans:
- Merchant cash advance. Need cash fast? Merchant cash advances provide upfront cash based on future sales. Remember, the advance is repaid through a percentage of your daily or weekly credit card sales, so watch out for those fees!
- Credit cards. Yep, your trusty plastic card isn't just for personal stuff. Business credit cards can help track expenses, snag rewards, or monitor employee spending. Just be sure to pay off that balance to dodge those pesky high interest rates.
- Small business grants. Free money alert! Governments and private organizations offer grants for small businesses. Competition can be tough, but avoiding that repayment hassle is worth a shot.
- Crowdfunding. Want to rally the troops? Crowdfunding lets you tap into your network and beyond to gather donations for your business. It's perfect for startups or those needing a boost—just keep an eye on those platform fees!
- Personal loans. If business loans seem out of reach, personal loans could be a lifeline. Just remember, it's tied to your personal credit and assets, so tread carefully!
- Bootstrapping. Sometimes, you've gotta rely on yourself! Bootstrapping means using your resources to fuel your business. It's a risk, but hey, it's all on you!
Many Lenders Fund In 24-48 Hours. Start Your Request Today!
Get your small business funded fast! Go to the LendingTree® official site to compare 2024’s top online lenders and get offers.
Secure and Fast.
Business loan borrower requirements
When applying for a business loan, lenders assess various factors to gauge your business' stability and ability to repay. Here are some of the key requirements:
- Time in business. Lenders prefer businesses with a solid revenue track record spanning at least two years, indicating stability.
- Minimum credit score requirement. As you’re aware, lenders always run a credit check. A good to excellent personal credit score (mid-600s or higher) is typically required, though some lenders may accept lower scores. A business credit score of at least 80 is also important.
- Cash flow. Demonstrating an understanding of your business's cash flow through projections is crucial for lenders, showcasing financial management.
- Collateral. Providing assets as collateral, such as real estate, equipment, or accounts receivable, can mitigate risk for lenders.
- Fixed charge coverage ratio. This ratio assesses your company's ability to cover fixed expenses, debts, and interest, influencing loan approval decisions.
- Working capital. Lenders evaluate your available funds for day-to-day operations by subtracting short-term debt liabilities from current assets.
How LendingTree chooses its lenders
As you’re aware by now, LendingTree isn’t a lender (the name can be confusing, we know!). Instead, it operates a marketplace that connects borrowers (like you) to lenders. So, how does LendingTree choose the lenders it connects you with?
Criteria for selection include:
- Ensuring that the maximum loan amounts were no less than $150,000.
- Verifying funding availability within two weeks of approval.
- Limiting eligibility to businesses with no more than two years of operation.
- Requiring personal credit scores below 680.
- Emphasizing transparency in rates and repayment terms.
In addition, LendingTree prefers lenders that report to all major credit bureaus, offer dependable customer service, and provide additional benefits such as free business coaching.
How much does LendingTree cost?
Would-be borrowers would be happy to know that LendingTree doesn’t charge any fees.
The company cautions against parties asking for fees or "insurance" before completing a loan application, as legitimate lenders do not require this. There are a few things you should be aware of so do not find yourself in an untoward situation:
- LendingTree matches customers with lenders in its network and notifies them of matches via email or phone.
- Neither LendingTree nor its lenders will request payment for loan approval, guarantee, or insurance.
- Your driver's license or Social Security card should not be requested before applying with a loan officer.
- LendingTree or its lenders will not solicit bank account information before completing the loan application.
- Legitimate lenders may charge interest rate lock, application, or appraisal fees, but these should only be requested after the loan process is initiated. LendingTree recommends using a credit card to pay fees and provide added protection.
However, the company’s no-fee ethos raises a question: How does LendingTree make money?
Instead of you footing the bill, the lender pays LendingTree to be part of its network. It's a win-win — lenders get valuable leads, and you get access to a wide range of loan options without spending a dime.
Many Lenders Fund In 24-48 Hours. Start Your Request Today!
Get your small business funded fast! Go to the LendingTree® official site to compare 2024’s top online lenders and get offers.
Secure and Fast.
Who are LendingTree business loans good for?
If you’re looking to cover short-term expenses or finance major investments like equipment or real estate, LendingTree provides access to a variety of loan types to meet different business needs. It simplifies the borrowing process by allowing users to fill out a single, secure form, saving time and effort. LendingTree also provides ongoing support, including free credit monitoring and personalized recommendations.
Who shouldn’t use LendingTree business loans?
Borrowers seeking personalized guidance from dedicated financial advisors or loan officers may prefer direct relationships with lenders. Additionally, individuals with exceptionally low credit scores may face challenges securing favorable loan terms through LendingTree.
Pros and cons
Pros
- LendingTree offers access to a diverse network of lenders
- Borrowers can fill out a single, secure form on the LendingTree platform
- LendingTree does not charge any fees to borrowers for using its services
- LendingTree provides borrowers with ongoing support
Cons
- Borrowers may feel overwhelmed by the number of loan offers and options available
- Loan terms and conditions may vary significantly between lenders
- As with any online platform, there is a risk of encountering scams or fraudulent activity on LendingTree
FAQs
What is LendingTree and how does it work?
LendingTree is an online lending marketplace that connects borrowers with a wide network of lenders. It simplifies the loan process by allowing users to fill out a single form, which is then matched with multiple lenders who compete for the borrower's business.
What are the eligibility requirements for LendingTree Business Loans?
Eligibility requirements vary depending on the lender and the type of loan. Generally, lenders consider factors such as credit score, time in business, annual revenue, and collateral. Some lenders may have specific requirements, so it's essential to review each lender's criteria.
How quickly can I receive funding through LendingTree?
The time it takes to receive funding depends on the lender and the type of loan. Some lenders may offer same-day funding for certain types of loans, while others may take several weeks to process the application and disburse funds.
Can I use LendingTree Business Loans for any purpose?
Yes, LendingTree Business Loans can be used for various business purposes, including working capital, equipment purchases, inventory financing, expansion, and more. However, it's essential to clarify the specific terms and restrictions with the lender before proceeding.
Are there small business loans for bad credit?
Yes, there are small business loans available for individuals with bad credit. These loans cater to business owners whose personal credit scores may be as low as 500. However, it's essential to note that lenders may impose higher interest rates on loans extended to individuals with lower credit scores.
Are there any fees associated with using LendingTree?
No, LendingTree does not charge any fees to borrowers. The platform earns revenue by charging lenders to be part of its network. However, borrowers should be cautious of any lender requesting upfront fees before completing the loan application process.
The bottom line
LendingTree business loans offer a convenient and accessible avenue for business owners to explore financing options tailored to their needs.
With a vast network of lenders, transparent rates, and ongoing support, the platform simplifies borrowing and empowers businesses to make informed financial decisions. While LendingTree may not be the ideal choice for everyone, particularly those seeking personalized guidance or expedited loan processing, it remains a valuable resource for entrepreneurs and established businesses.
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Writer
Jasir Jawaid is Joy Wallet's Assistant Editor. He has more than 13 years of experience as a journalist covering Wall Street, equities, financial policy and regulation, and cryptocurrency and blockchain.
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