Lendingtree's Commercial Loan Services: What You Need To Know

LendingTree is an online loan marketplace that connects borrowers with lenders offering various financial products. The platform provides a convenient and efficient way for businesses to compare financing options, including commercial loans. LendingTree does not directly provide loans, but it helps borrowers find and compare offers from its network of over 300 lending partners. While it offers a wide range of options, users should be aware of potential downsides, such as aggressive marketing and sales tactics from lenders.

Commercial loans vs business loans

LendingTree is an online marketplace that connects borrowers with lenders offering various financial products. It is not a direct lender and does not fund or service loans. Instead, it helps borrowers find and compare loan offers. LendingTree's services are particularly useful for small businesses and fledgling enterprises that need a startup business loan. The platform is also beneficial for more established firms that want to explore new funding avenues. LendingTree provides a wide variety of financing options, from conventional bank loans and SBA-backed instruments to alternative options like business lines of credit.

Now, when it comes to commercial loans versus business loans, the terms are often used interchangeably by lenders. However, some lenders differentiate between the two. Commercial loans are typically for larger companies that need higher loan amounts, while business loans are offered to smaller companies. Commercial loans are a form of debt-based financing used to fund business expenses and support the growth of a business. Similarly, business loans are also based on the financial strength of the business and the owner's ability to earn a profit. Lenders will assess the business's financial profile and the owner's personal credit history to determine their ability to repay the loan.

Commercial loans can be used to establish a new business or develop an existing one. To secure a commercial loan, borrowers may need to provide specific documents, including tax returns, financial statements, accounts receivable and payable, and collateral. Commercial loans can be used as working capital, to purchase real estate, inventory, or equipment, or to acquire funding for delivery vehicles, employee transportation, and customer hauling.

Business loans, on the other hand, are typically sought by newer or smaller businesses. These loans can be conventional bank loans or alternative online lending options. Business loans may also include SBA loans, which are backed by the federal government and tend to have lower rates than conventional business loans. SBA loans are more competitive and can be difficult to qualify for, but they offer more flexible limits, interest rates, and payments.

Commercial real estate loans

LendingTree is a loan marketplace that connects individuals and businesses to its lending partners. It does not directly fund or service loans but helps borrowers find and compare loan offers. The company is best known for its services in finding personal loans and its core mortgage brokerage services. LendingTree is compensated by companies on its site, and this may impact how and where offers appear.

LendingTree works with a vast network of lenders offering a wide range of loans. It is best suited for small business owners who want to explore multiple options. The platform is flexible and accessible, offering a wide variety of financing options, from conventional bank loans and SBA-backed instruments to alternative options like business lines of credit.

LendingTree's initial application is brief, and it does not cost anything to submit a loan request, get matched with lenders, and receive conditional loan offers. A soft pull on your credit is typically conducted at this initial stage, which does not affect your credit score. However, once you proceed with a specific lender for a formal loan application, a hard pull is usually performed, which can impact your credit score.

LendingTree does not provide much information about commercial loans on its website, so it is unclear whether it offers commercial real estate loans. However, it does provide commercial loans for HVAC & Plumbing customers and business loans for small businesses. Commercial loans are typically for larger companies that need higher loan amounts, and some lenders may require a down payment or collateral, such as real estate.

Overall, LendingTree offers a convenient and efficient way to compare business financing options, but each business should evaluate whether the platform suits their individual needs and capacity to manage potential downsides, such as an increase in marketing communications and varied lender quality.

Commercial auto loans

LendingTree is an online marketplace that connects borrowers with multiple lenders offering various financial products. The company does not directly fund or service loans but helps borrowers find and compare loan offers. LendingTree is compensated by the companies on its site, and this compensation may impact how and where offers appear. LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

LendingTree is best suited for small business owners who want to explore multiple loan options. The platform is flexible and accessible, providing a wide variety of financing options, including conventional bank loans, SBA-backed instruments, and alternative options like business lines of credit. LendingTree has lower qualifications than traditional lenders and offers financing programs for startups. It can help connect borrowers to a lender and loan program that fits their business needs.

LendingTree does not provide much information about commercial loans on its website. However, it does provide a general guide to commercial financing, which includes commercial auto loans as one of the common types of commercial loans. Commercial auto loans provide funding for delivery vehicles, employee transportation, hauling customers, and more, either as individual vehicles or entire fleets.

Pros and cons of LendingTree

LendingTree is a loan marketplace that connects individuals and businesses to its lending partners. It is not a direct lender and does not fund or service loans. Instead, it helps borrowers find and compare loan offers. LendingTree offers a wide range of loans, from personal loans to auto loans to commercial loans.

Pros of LendingTree

• LendingTree provides a flexible and accessible platform for businesses and individuals to compare loan offers and choose one that suits their needs.
• It has lower qualifications than traditional lenders and offers financing programs for startups.
• The application process is straightforward and quick, saving time and effort in researching and applying to multiple lenders.
• LendingTree offers a wide range of loan options, including conventional bank loans, SBA-backed instruments, and alternative options like business lines of credit.
• LendingTree provides a Finance Tracker tool that allows users to review their finances, check their credit score, create a personal budget, and link their bank accounts.
• LendingTree has built a solid reputation as a convenient and reliable source for connecting individuals to prospective lenders.
• LendingTree's partners include well-known names like Kabbage, Credibly, OnDeck, and Fora Financial.
• LendingTree's services are free for consumers as the partners pay a commission when borrowers are matched with lenders.
• LendingTree offers a soft credit inquiry that does not affect the credit score when initially matching with lenders.

Cons of LendingTree

• The number of offers and information can be overwhelming, especially for those unfamiliar with financial jargon or loan comparisons.
• As LendingTree includes a broad range of lenders, the quality and service of these lenders can vary, requiring due diligence from the borrower.
• Registering on LendingTree may lead to an increase in marketing emails and calls from lenders, which some users may find intrusive.
• LendingTree has limited information on its website about commercial loans, so users won't know what's available until they apply.
• Some reviews suggest that the customer service team can be aggressive and persistent with sales tactics and unsolicited contact.
• There are complaints about the costs and fees involved, with the possibility of being connected with a lender that charges high origination fees.
• There is a possibility of multiple hard credit pulls by lenders, which can impact the credit score.

LendingTree vs other loan marketplaces

LendingTree is an online marketplace that connects borrowers with lenders. It does not provide loans directly but helps borrowers find and compare loan offers. LendingTree works with both individuals and small businesses, helping them find personal loans, mortgages, auto loans, credit cards, and more. It is one of the largest loan marketplaces in the country and has helped 111 million people and approved 3 million loans since its founding in 1996.

LendingTree's business loans service stands out due to its flexibility and accessibility. It offers a wide variety of financing options, from conventional bank loans and SBA-backed instruments to alternative options like business lines of credit. This makes it invaluable for small enterprises that may be sidelined by the requirements of traditional banking structures. LendingTree also has lower qualification requirements than traditional lenders and has financing programs for startups.

However, the platform has received some negative reviews. Some users have complained about being contacted by numerous lenders, unsolicited hard credit pulls, aggressive customer service, and the costs and fees involved. The number of offers and information on the platform can also be overwhelming for those unfamiliar with financial jargon or loan comparisons.

LendingTree competes with other personal and business loan marketplaces, such as Bankrate, Funding Circle, Lendio, and Credible. Lendio, for example, has more flexible and clear borrower requirements, making it better for young and growing businesses. It also has a lower minimum revenue requirement and can work with bad credit. Credible, on the other hand, offers personal loans of up to $200,000, compared to LendingTree's maximum of $50,000.

In summary, LendingTree is a convenient and efficient way to compare business financing options, but it is important to consider the potential downsides, such as aggressive marketing and sales tactics, and the lack of information on its website.

Frequently asked questions