LendingTree was founded by accountant Doug Lebda in 1996 in Charlotte, North Carolina. The financing products marketplace company went national two years later as an online source for consumers looking to find the best loans deals in one place. Currently, LendingTree features a nationwide marketplace of lenders offering various financing products.
LendingTree works with all types of borrowers for business loans, from startups to large organizations. Borrowers will be asked to submit certain paperwork in order to qualify for a loan. Depending on the length of time they have been in business and the specific loan was chosen, some qualified borrowers will not have to provide collateral.
Small business loans from LendingTree are typically used for working capital, such as marketing, payroll, system upgrades, and inventory.
- Personal Collateral Depending on Loan and Overall Time in Business
- Submitted Business Documentation: Personal Background, Bank Statements, Income Tax Returns, Business Plan, Resume, Personal and Business Credit History
- Must Have a Reasonable Amount of Invested Equity in Business
Business owners access LendingTree deals by filling out a simple online form located on the LendingTree website, and the company sends customized offers from up to five different lenders. Benefits of he platform include the following:
Pros of LendingTree Small Business Loans:
- 11 Business Financing Options
- Instant Approval
- Access to Funds Within One Week
- Choose up to Five Customized Loan Offers
- Free Credit Score Updated Monthly
Offered Loan Types
LendingTree offers potential borrowers four types of business loans to choose from with its marketplace lenders. Long-term loans are available for businesses looking for startup funding, expansion assistance, refinancing, or working capital. Short-term loans are available for businesses that need to pay bills quickly or purchase equipment. LendingTree also features lenders that provide lines of credit and alternative financing options, which includes crowdfunding resources, peer-to-peer loans, and cash advances.
LendingTree offers consumers educational articles on loan types, qualification requirements, and credit card advice. Borrowers can calculate their estimated monthly payment on the loan amount they may be interested in on the website with Business Loan Calculator. Consumers can submit a question on the website or contact a Customer Service Representative by phone.
While LendingTree has found an efficient way to provide business owners with the help and resources they need to obtain a loan, there are some concerns that should be pointed out. Prospective borrowers should be aware of the following items:
Limited Lender Information
LendingTree is able to match borrowers and lenders together but is unable to publicly disclose specific information on loan details from its lenders. Factors such as prepayment penalties, origination fees, and closings costs vary from lender to lender. This makes it difficult to determine if the loan offers a borrower is matched up with are really the best deals available to them.
High APR Rates
APR Rates range from 3–90 percent, depending on the loan selected. These rates are much higher than loan offers from similar online financing websites. Additional fees may also apply, depending on the selected lender.
Negative Customer Feedback
According to complaints, the company shares consumer information with multiple lenders that creates problems for these consumers. Multiple credit inquiries have negatively impacted borrower’s credit scores and these borrowers have reported being subjected to harassing and annoying phone calls from lenders as well. Borrowers have also reported difficulty in getting their names off these mailing lists after LendingTree has sold their information to these lenders.
Frequently Asked Questions
How long will it take to receive funds from LendingTree?
Consumers can receive loan funding within 24 hours—one week after acceptance, depending on the chosen loan type and lender.
Does LendingTree require collateral with its loans?
Yes. LendingTree requires either personal or business collateral in order to receive loans.
Does LendingTree have prepayment penalties?
The company does not have any prepayment penalties; however, the lenders it works with may have prepayment penalties on offered loans.
Does LendingTree charge origination fees?
No. The company does not charge an origination fee; however, its lenders may charge origination fees on certain loans.
Does LendingTree charge closing fees?
No. LendingTree does not charge a closing fee itself; however, marketplace lenders may charge closing fees on their offered loans.
How can I contact LendingTree?
Consumers may contact the company by phone at 1-800-813-4620.
Types of Loans Offered
LendingTree offers SBA loans up to $300,000.
APR rates range from 3–90 percent.
The company offers terms of 18 months or less on SBA loans.
The Borrowing Process
According to the corporate website, borrowers should be prepared to submit the following paperwork:
- Personal/Business Credit History: This is used to determine if a borrower is capable of loan repayment. Borrowers can check their score free on the LendingTree website.
- Business Plan: This document should include a marketing plan, competitive analysis, and complete data regarding price points and cost factors.
- Cash Flow Projections: A well-established business has greater success at being granted a loan and submitted projections should be as accurate and reasonable as possible.
- Balance Sheet: Lenders want to see any assets and liabilities the business has before extending a loan.
- Accounts Payable/Receiving System Documentation: Lenders want to see whether or not a business is managing its resources effectively.
How To Apply
LendingTree offers a wide range of lenders with different requirements that makes it easier for borrowers to qualify for a loan than with other similar online financing marketplaces. Borrowers can qualify for certain business loans with the submission of business documentation and either personal or business collateral. In order to be matched with lender, consumers need to complete the following steps:
- Complete the online application form on the LendingTree website. The information you will be asked to provide includes the desired loan amount, personal or business credit history, business plan and accounting information, along with other personal information necessary to complete the qualification process.
- Once qualified, choose from up to five customized loan offers based on your credit profile.
- Contact LendingTree at 1-800-813-4620 for any questions that may arise.
- Finalize the details of your chosen loan offer with a live representative. Borrowers are responsible for any fees that may be charged by the chosen lender, such as closing costs and origination fees.