Funding Circle vs Lendio
An honest side-by-side comparison of two of our top business loans picks — pricing, strengths, weaknesses, and who each one is really for.
Funding Circle
Ranked #4 of 15 in this directory
Term loans for established small businesses with competitive fixed rates
Lendio
Ranked #5 of 15 in this directory
Business loan marketplace connecting borrowers with 75+ lenders in minutes
Our pick: Funding Circle. Our editors rank Funding Circle higher overall in Business Loans — but Lendio can be the better fit depending on your budget and use case below. How we review
Compare the details
| Funding Circle | Lendio | |
|---|---|---|
| Pricing model | Paid | Freemium |
| Starting price | See website | See website |
| Category | Term Loan | Sba |
| Editorial rank | #4 of 15 | #5 of 15 |
Strengths
Funding Circle
- ✓Loan terms up to 7 years — longer than most online lenders
- ✓Competitive fixed rates for businesses with strong credit profiles
- ✓No prepayment penalty — pay off early and save on interest
- ✓Large loan amounts up to $500,000 suit growing businesses
- ✓Dedicated account managers provide personalized service
Lendio
- ✓Single application surfaces offers from 75+ lenders
- ✓Covers nearly every loan type including SBA, term, LOC, and MCA
- ✓Free to use — Lendio earns from lenders, not borrowers
- ✓Dedicated funding managers guide borrowers through options
- ✓Ideal for businesses with limited credit history seeking any available option
Watch out for
Funding Circle
- !Requires at least 2 years in business and $50,000 in annual revenue
- !Minimum credit score of 660 required for most products
- !Application process is more thorough than quick-funding alternatives
- !Origination fees of 3.49%–6.99% added to loan cost
Lendio
- !Not a direct lender — approval depends on third-party lenders
- !Some lenders in the network charge higher rates for lower credit profiles
- !Data shared with multiple lenders in the network
- !Best offers reserved for businesses with strong financials
Best use cases
Funding Circle
- →Established business looking to expand operations or open a new location
- →Manufacturer purchasing capital equipment with favorable long-term financing
- →Business owner refinancing high-cost short-term debt into a longer fixed-rate loan
Lendio
- →First-time business borrower unsure which loan type or lender to choose
- →Small business comparing multiple loan offers to find the best rate
- →Business owner exploring SBA loan options alongside conventional financing
About each tool
Funding Circle
Funding Circle is a leading online marketplace lender specializing in term loans from $25,000 to $500,000 for established small businesses. Operating as a peer-to-peer lending platform, Funding Circle connects borrowers directly with institutional and individual investors, which enables more competitive rates than many online lenders. With loan terms up to 7 years and a transparent application process, Funding Circle is ideal for businesses looking for longer-term, lower-cost financing than what most fintech lenders offer.
Lendio
Lendio is the largest online marketplace for small business loans, allowing entrepreneurs to submit a single application and receive offers from a network of over 75 lenders — including term loans, SBA loans, lines of credit, merchant cash advances, and equipment financing. Rather than being a direct lender, Lendio acts as a matchmaker that helps businesses find the best loan product and lender for their specific situation. With over $10 billion in funding facilitated since founding, Lendio is a trusted first stop for businesses exploring financing options.
Still deciding? Browse all 15 options with honest pros, cons, and pricing.
See all Business Loans →