| 💡 | Topic | Details |
|---|---|---|
| 🏦 | Lender Type | Alternative business funding company offering merchant cash advances and invoice factoring to small businesses. |
| ⚡ | Speed of Funding | Fast approvals with funding possible within 24 hours after approval. |
| 💳 | Credit Requirements | Accepts credit scores as low as 550; focuses more on revenue and receivables than personal credit. |
| 💬 | Customer Experience | Highly rated for professional and responsive representatives who guide applicants through the process. |
| 💸 | Costs & Fees | High fees and short repayment terms; MCAs can range from 12% to 36%, and factoring fees can range from 1% to 5%. |
| 🔁 | Repayment Structure | Daily or weekly payments tied to revenue; flexible, but can strain cash flow during periods of low revenue. |
| 📈 | Best For | Established businesses needing quick working capital and unable to qualify for traditional loans. |
| ⭐ | UCS Rating | 4 out of 5 – Reliable, fast, and customer-focused, but expensive compared to traditional financing. |
Alternative business funding companies, such as Lendr, offer small businesses quick and easy access to capital when traditional banks decline to lend. Fast, flexible, and less credit-dependent, these online lenders have become essential for entrepreneurs who need same-day working capital or can’t wait weeks for SBA loan approval.
However, not all online lenders operate the same way. Business owners should carefully evaluate every funding option to ensure they get the best deal and avoid unnecessary costs that could strain cash flow.
In this review, we’ll explore how Lendr works, including its funding options, pros, cons, and application process, to help you make an informed decision. Specifically, we’ll answer these questions and more:
Lendr is an alternative business financing company headquartered in Chicago, Illinois. Founded initially as Viking Capital Group in 2011, the company rebranded as Lendr in 2016 to focus on digital business funding solutions.
Since its inception, Lendr has funded over 30,000 businesses and provided more than $250 million in total financing. The company also claims an 80% returning client rate, showing strong repeat customer loyalty. Lendr focuses on providing high-speed working capital to small businesses with limited credit history.
Lendr operates as a fintech platform with an online portal and mobile app designed to streamline the business funding process. It aims to provide fast, reliable access to working capital with simplified approval requirements and minimal paperwork.
Unlike banks, Lendr is not a traditional lender. Lendr offers merchant cash advances and invoice factoring but does not provide traditional loans. Instead of issuing standard business loans, it offers financing through the purchase of future receivables. However, Lendr is a direct funder, meaning it provides the funds itself rather than brokering through third parties.
Lendr’s online financing process centers around its two core products: merchant cash advances (MCAs) and invoice factoring. Both options are structured to help business owners unlock future revenue to cover present expenses.
With Lendr, you can receive funding in as little as 24 hours after your application is approved. Lendr’s financing amounts can range from $5,000 to $1 million.
Merchant cash advances work by providing an upfront sum in exchange for a percentage of future credit card sales. This product is ideal for retailers, restaurants, and service-based businesses that process a high volume of daily credit card transactions. Instead of fixed loan payments, the business repays the advance through automatic deductions from its daily sales until the total balance is fully repaid.
MCAs don’t use a standard interest rate like business loans. Instead, they use a factor rate, sometimes referred to as the MCA fee.
Lendr’s merchant cash advance fees range from 12% to 36% of the borrowed amount, depending on the applicant’s credit profile, revenue, and industry. Merchant cash advances from Lendr require repayment through a percentage of daily credit card sales until the advance is repaid. Because payments fluctuate with sales volume, MCAs provide flexibility during slower business periods — but they can also strain cash flow if daily revenue dips.
Invoice factoring enables businesses to receive payment on invoices before their due dates. This financing option helps B2B and B2G companies (such as manufacturing or logistics firms) turn outstanding invoices into immediate cash flow.
Lendr’s invoice factoring can provide up to 100% of the invoice value, depending on the service chosen. In this arrangement, Lendr purchases your invoices, advances you most of the value upfront, and collects payment from your clients when due.
Invoice factoring with Lendr can charge fees ranging from 1% to 5% per invoice, depending on the business’s client base, invoice volume, and payment terms. This allows small businesses to cover payroll, finance inventory, or take on new projects without waiting 30–90 days for clients to pay their invoices.
Lendr has lower credit requirements than traditional banks, making it more accessible to businesses with lower credit scores. While the company doesn’t publicly state specific qualifications, industry sources suggest:
Lendr reviews bank statements, sales data, and invoices rather than focusing primarily on personal credit. This makes its products suitable for business owners who may have faced past credit challenges but maintain steady sales or recurring receivables.
Lendr’s funding products are structured as business-to-business transactions involving the purchase of future receivables, not traditional debt financing. In contrast, traditional debt financing—like SBA loans or term loans—requires repayment with interest, which can build your business credit history.
However, because Lendr does not provide traditional loans, its merchant cash advances and invoice factoring don’t report to business credit bureaus. This means they can’t help build business credit, though they also generally don’t harm your score unless you default.
Access to Lendr’s services is particularly favorable for established small businesses that need urgent cash flow but have poor credit. MCAs are often utilized by companies that cannot qualify for other forms of financing or fast business funding.
The invoice factoring service offered by Lendr includes payroll processing and payroll tax management as an optional, higher-cost service. Invoice factoring can help businesses that invoice B2B or B2G customers and need immediate financing. Both options provide same-day business funding and a quick turnaround, allowing small businesses to tap into their cash flow for pressing needs, such as payroll, marketing, or inventory purchases.
While these solutions are accessible, they often come with higher costs. Both MCAs and invoice factoring offered by Lendr are considered more expensive financing options compared to traditional loans.
Another benefit is that Lendr doesn’t require a new credit card terminal for MCAs. The company reprograms your existing reader over the phone in about 10 minutes. Additionally, Lendr can pay off any existing business cash advances and provide additional funds, helping borrowers consolidate and expand access to capital.
Customers report that Lendr is accommodating and supportive throughout their financing process.
Lendr’s platform is noted for its exceptional customer support, which is often praised in user reviews. Customers frequently express satisfaction with the professionalism of Lendr’s staff.
Lendr offers a business loan affiliate program. ISOs and business loan brokers can sign up to provide the company’s alternative business funding products to their customers.
Lendr offers an easy application process and funding in as fast as 24 hours. Here’s a step-by-step look at the small business loan application process:
Visit the company’s website and complete a brief form with your business name, contact information, and revenue details. The process only takes a few minutes.
Applicants are asked to upload recent bank statements, a voided check, and possibly government identification or tax documents.
A Lendr representative will contact you by phone to discuss your financing options, answer any questions you may have, and verify the submitted data and details.
If approved, you’ll receive an offer detailing the advance amount, fees, and repayment structure. Review carefully to ensure it aligns with your budget and cash flow needs.
After signing the funding agreement, money can be deposited into your business account within 24 hours — sometimes the same day.
Once funding is disbursed, repayment begins almost immediately. Lendr offers flexible repayment terms for both MCAs and invoice factoring, typically ranging from 4 to 14 months.
For merchant cash advances, repayment occurs as a percentage of daily sales, while some programs allow for weekly payments. Repaying an MCA involves a percentage of daily sales, which can strain a business’s cash flow.
Lendr customers may be eligible for renewal funding after consistent, on-time payments. Information about early payoff discounts or prepayment penalties isn’t publicly available, and we were unable to verify specific terms on their website.
Lendr stands out for its speed, accessibility, and strong customer service reputation. The company’s technology-driven approach enables small businesses to receive same-day funding, even when facing credit challenges.
Lendr can fund businesses with amounts ranging from $5,000 to $1 million based on qualifications. The flexible qualification process, direct funding model, and renewal opportunities make Lendr a valuable partner for business owners seeking quick access to capital. Customers also report that representatives are professional, helpful, and responsive throughout the application and repayment process.
While convenient, Lendr’s funding options are high-cost compared to traditional business loans. The fee structures for Lendr’s financing can sometimes be misleading, making it challenging to assess the actual costs accurately.
Lendr’s merchant cash advance and invoice factoring costs typically equate to high annual percentage rates (APRs). Because repayments occur daily, they can impact cash flow — particularly during slower months. Additionally, these products don’t help build business credit, which limits long-term financing benefits.
Pros:
Cons:
Yes, Lendr is a legitimate online business funding platform. The company has been in business for over a decade. Lendr’s platform holds an A+ rating with the Better Business Bureau (BBB).
It is also accredited, operates transparently through its official website, and has funded thousands of small businesses across the nation.
Lendr consistently receives high ratings from customers on review platforms. It has a 4.3 out of 5 on Google reviews.
Many reviewers highlight a smooth application process, quick funding, and courteous representatives. Most customers praise the responsiveness of their Lendr lending representatives.
Customer experiences with Lendr typically highlight the speed of the application and funding processes, as well as the helpfulness of customer service representatives. Several customers recommend working with specific representatives they have found helpful, highlighting individual staff members in a positive light.
Negative reviews, however, often mention unclear fee structures, term changes, or difficulty verifying cost details before signing. Some borrowers also note that repayment deductions can feel steep during low-revenue periods.
While Lendr specializes in accessible business funding, it may deny an application for various reasons. Small businesses may not have the requisite sales volume, credit card receipts, or time in business. While it helps companies with bad credit, it may include a credit score cutoff in some cases.
If Lendr declines your application, the denial letter should explain the reasons for the decision, along with tips on how to improve your application and when you can reapply. If not, or if you require more information, contact Lendr directly.
Fortunately, small business owners have many business lenders to consider if Lendr isn’t the right fit for them. Many funders provide merchant cash advances and invoice factoring. Several lenders offer additional options, including actual small business loans. Working with a small business loan marketplace (like UCS) allows you to apply to multiple lenders with a single application and shop for the best deal to meet your business needs.
You may be interested in one of the following small business loans:
Lendr is a trusted fintech lender for small businesses that need quick working capital but may not qualify for traditional bank loans or SBA loans. The company’s merchant cash advances and invoice factoring programs are fast and convenient, although they are more expensive than standard business financing.
Businesses with consistent sales, established customer relationships, and predictable revenue will benefit most from Lendr’s services. However, startups, seasonal businesses, or those with thin margins may want to explore other funding options to protect long-term cash flow.
Based on the available information, we rate Lendr 4 out of 5. It’s a solid option for MCAs and invoice factoring with a good online reputation, but it lacks traditional business financing products.
Disclaimer: The Lendr trademark is owned by Lendr.Online, LLC., and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from Lendr.Online, LLC.
