Exploring Loan Options: Our Experience with Lendio and SBA Loans
Navigating the world of business loans can be challenging, particularly for those who are venturing into borrowing for the first time. As a well-established business in New York City with nearly six years of experience, we recently explored financing options through Lendio, encountering a range of offers from private lenders.
Our journey led us to three distinct proposals from different lending institutions, each providing various loan amounts over a 15-month term. However, we noticed that these offers came with relatively high costs, presented as ‘Capital Costs’ by the lenders, though essentially akin to interest rates. The factor rates ranged from 1.31 to 1.45, which notably surpasses typical credit card rates.
Concurrently, we are pursuing a Small Business Administration (SBA) loan, though securing one is not a certainty at this stage. Our Lendio representative has been quite persuasive, highlighting these offers as favorable options for us as first-time borrowers.
Given these circumstances, we are seeking insights and advice on whether the terms we’ve been presented with are standard for newcomers or if better alternatives might exist. Understanding the landscape of borrowing as a first-time borrower is crucial for making an informed decision that best supports the continued growth of our business. We welcome any insights or experiences from others who have navigated similar paths.
