Lendistry Small Business Loan Review

About Lendistry

Lendistry

We believe in the power of small business to create jobs, grow local economies, and strengthen communities. Lendistry provides funding for small businesses with responsible rates and transparent terms. Our equal opportunity lending practices ensure all businesses have a fair chance at success, including those in underserved communities.


What is Lendistry?

Founded in 2015, Lendistry uses technology to provide growth capital and financial education for small businesses. The company is focused on equal opportunity lending, offering traditional term, short-term, and Small Business Administration (SBA) loans to a wide range of small businesses, including those in underserved communities.

Lendistry takes great pride in providing reasonable rates, transparent terms, and fast access to capital. The company is unusual among non-bank lenders in providing loan terms of up to ten years and borrowers are encouraged to grow with the company. Traditional term loans of up to one million in funding helps clients expand, update operations or equipment, satisfy large orders, take on marketing initiatives, institute technological advances, and many other things to make their business successful.

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Lendistry highlights:

  1. Reasonable rates: Rates for Lendistry loans are lower than many competitors, although good-excellent credit is required to access the best rates.
  2. Wide latitude for growth: Lendistry offers borrowers terms of up to ten years and loans of up to $1 million, allowing borrowers to get what they need to grow.
  3. Best for assertive borrowers: All of Lendistry’s loan amounts start at $50,000, so companies looking for a small infusion of capital should look elsewhere.

What Lendistry offers?

Payments are automatically deducted from the businesses checking account or applied to a credit card each business day, once a week, or once a month. The weekly and monthly repayment options are available only to borrowers with strong business profiles.

Lendistry: At a glance
Loan product Loan amount Loan term APR range Fees Time to funding
SBA loans $50,000-$250,000 Up to 10 years 6.25-10.25% $2,500 Approval within 48 hours; funds available in 24-72 hours upon approval
Traditional term loans $50,000-$1 million 1-5 years 6-14% Origination fee up to 3%, $1,250 processing fee Approval within 48 hours; funds available in 24-72 hours upon approval
Short-term loans $50,000-$500,000 3-12 months 12-24% Origination fee up to 2% Approval within 48 hours; funds available in 24-72 hours upon approval
Bridge loans $50,000-$500,000 3-12 months 8-18% Origination fee up to 3% Approval within 48 hours; funds available in 24-72 hours upon approval

Rates current as of 6/5/18


Eligibility requirements

Loan product Annual revenue Min. business credit score or personal credit score Time in business
SBA loans $150,000 600+ 2 years preferred
Traditional term loans $150,000 640 3 years preferred
Short-term loans $150,000 600+ 2 years preferred
Bridge loans $150,000 600+ 3 years preferred

 

Additional eligibility factors

The total loan amount a borrower is eligible to receive will be determined by the monthly revenue, financial payment history and strength of the business.

In addition to the minimum requirements in the chart, borrowers seeking traditional term loans must have no history of bankruptcies within the last three years and have not defaulted on a government debt (like an FHA mortgage or a student loan).

Borrowers seeking SBA loans who have in business for fewer than two years may be able to obtain funding but Lendistry makes this determination on a case-by-case basis. SBA borrowers must have no bankruptcy or foreclosures within the last three years, no open tax liens (without a payment plan) and have never defaulted on a government debt.


Businesses not eligible for Lendistry loans

The following is a list of industries that are not eligible for a loan with Lendistry:
Adult entertainment and/or materials Insurance (except independent agents)
Airlines Internet prescription drugs
Annual memberships Merchant processing
Brokerages Non-profits
Cannabis (growers & sellers) Oil drilling
Casinos Pay day loan
Check cashing services Prepaid phone cards
Consumer credit Religious organizations
Coupon books Tobacco sales/products
Dating services Used car dealers
Diet programs Vape shops
Escort services Warranty companies
Financial institutions Weapons dealers
Fortune tellers, psychics, Wholesale cell phones
Astrologers, spiritual Wire transfers
House flippers

 

In addition to the above, the below industries are also excluded for companies not based in California:

  • Auction houses
  • Convenience stores
  • Gas stations
  • Gun sales
  • Litigation finance
  • Marinas
  • Pawn shops
  • Staffing agency
  • Telemarketing
The following industries not based in California will be considered on a case-by-case basis:
Dietary supplements Consulting
Freight forwarding Country clubs
Furniture sales Limo services
Kiosks Modeling agencies
Accounting Moving companies
Appraisers Private detective
Boat sales Ticket brokers
Bridal formal wear Travel agencies
Caterers Trucking
Construction Wireless stores

 


How to apply for Lendistry financing

The Lendistry application form can be completed online. Before starting your application, have the following information readily available: average monthly sales, business owner’s SSN, and business tax ID number.

Required documents to apply:

  • Three months of business bank statements (most recent)
  • Past three years of personal tax returns
  • Past three years of business tax returns

Pros/cons

Pros Cons
Reasonable rates, especially for those with excellent credit Relatively stringent requirements
Loans terms up to 10 years and as high as $1 million Businesses in many industries are not eligible
Low to no collateral required Origination fees apply and weekly repayment may be required

Who is the best fit?

Lendistry is industry agnostic, but the businesses that the company serves most are restaurants, contractors, manufacturers and franchises. Companies that are well established with good to excellent credit, and are looking for major capital infusions at reasonable rates will be best suited for a loan with Lendistry.


How does Lendistry stack up?

No collateral is required for an SBA loan, although Lendistry does place a Uniform Commercial Code (UCC) lien, which is a formal priority claim on a borrower’s assets. For non-SBA loans, collateral can be as low as a 0.25% Collateral Coverage Ratio (CCR).

Lendistry has an engaging website, but is lacking some important fine print. It’s always a good idea to call the lender with any questions before you select your lender.

Securing a loan with Lendistry may be a good choice for established businesses in need of some real-deal capital for growing their business. Lendisty’s solid rates and substantial latitude for lending, both in loan terms and loan amounts, makes Lendistry a good option for potential borrowers.

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