LendingTree’s Small Business Methodology: How We Rate and Score Lenders
At LendingTree, we know that time is a valuable resource for small business owners. With a to-do list the length of your arm, the last thing you need is to spend an afternoon wading through the complex, often murky world of small business lending.
We can help.
Using a six-point rating system, our editorial team scoured lender websites, connected with company representatives and analyzed public data to publish a series of objective and comprehensive lender reviews you can trust.
We prioritized factors like cost, accessibility and transparency to make sure you’re being offered the right products at the right price. But we also considered customer experience and access to credit building and business development tools, because we believe the best lenders help you and your business succeed.
Here’s a closer look at how we vet lenders.
Our methodology categories
Cost to borrow (29%):
We make sure what you pay is fair.
How much you’ll spend is a top priority for you — and for us. We compare rates from lenders to make sure they’re competitive and identify which fees are avoidable and which aren’t.
Accessibility (18%):
We check to make sure you have access to the financing you need, when you need it.
You don’t want to waste time considering lenders if you don’t have a high likelihood of qualifying for financing. This score takes into account a lender’s credit score, time in business and annual revenue requirements. We also consider industry and geographical limitations.
Transparency (18%):
No more guessing your rates and terms.
Lenders that clearly advertise their rates, terms and fees online rank highest in this category. If you have to search for your answer — or if it’s not available at all — we dock points.
Flexibility (15%):
Can you get what you need without jumping through hoops?
When it comes to flexibility, we rank lenders with multiple loan products the highest, while also looking at a borrower’s ability to avoid putting up collateral or personal guarantees.
Customer experience (10%):
Applying for, and accessing, your financing shouldn’t be a challenge.
Lenders with seamless online applications and multiple customer service points of contact rank high in this category.
Credit building and business development (10%):
Your lender should offer more than just financing.
Lenders who help boost your credit score by reporting to business credit bureaus and who provide mentorship are weighted more favorably.
Discretionary adjustments
Our editorial team may apply a small adjustment to a lender’s final score to reflect qualities not covered in methodology questions. Such factors could include customer satisfaction ratings, recent lawsuits or regulatory actions, unique lender features and standout borrower experiences. We also consider whether or not a lender specializes in a single product or service.
Our methodology process
Our editorial team reviews nearly 50 online lenders and traditional banks each year. Companies are rated in six weighted categories to determine their five-star rating.
We review more than 30 data points collected from company websites, public sources and conversations with lender representatives. We also analyze lender pages and scour consumer watchdog websites for reports of abuse or legal filings. Questions are weighted within categories to represent the impact on a borrower.
We fact check and update our reviews annually, but we also update them throughout the year if there are changes to products, rates or terms.
For more information, review our editorial standards.
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