We understand that acquiring a franchise is a major move. Nevertheless, you can not ask for a greater collaborator than Lendio for this amazing new business.
Lendio Franchise is the leading global market for tiny firm lending choices in the United States.
They unite those who need money to start a company with lots of various borrowers and lending possibilities.
About The Lendio
Lendio is a platform for small business loans. Lendio will assist you in identifying financiers who are willing to work with you and disclose details of yourself and your business.
This covers a wide range of financial items. The accessibility of product lines is determined by various variables, including your creditworthiness, your profession, the length of time you’ve been in service, and the sum of funds you generate.
Terms of the loan will also differ between Lendio’s partner lenders.
History Of Lendio
Funding Universe was established in 2006 as Funding Utah, and Lendio CEO Brock Blake has held in that role since 2011.
Lendio joined the Innovative Lending Platform Association, a trading group that advocates digital financing and consulting firms that promote economic growth, in 2017.
Brock Blake and Trent Miskin founded the company in 2011 to change the way entrepreneurs obtain funding.
Entrepreneurs may access a wide range of funding choices and loan packages through Lendio’s platform, with over 75 lenders.
Lendio Franchise Model
| Cost Or Fees | Amount |
|---|---|
| Investment | $63,150 – $117,100 |
| Franchise-Fee | $46,000 |
| Advertising fee | 2% |
| Industry | Financial service |
| Area Requirement | It does not require a physical location |
| Units | 94 |
Lendio Services
To help you meet your company requirements, Lendio provides a free membership service.
As previously said, Lendio connects you with various creditors and loan options to fulfill your market needs.
We seek relevant information from you as a provider of goods, and you supply metadata to be used to find the best match for your market needs among our partners.
Ideal Candidate For Lendio Franchise
- Dedicated and unyielding
- A seasoned networker with a strong reputation in their community.
- Developing and strengthening personal, deeper relationships with entrepreneurs and possible partners is one of her greatest passions.
Lendio Franchise Revenue & Profit
The profit and revenue of a Lendio franchise outlet could vary from one another depending on plenty of factors such as the location, demand in the area, etc.
However, as per resources, Lendio franchises make sales of $139,433 on average, and with an estimated profit margin of 30%-50%, franchise owners enjoy profits of $41,829 to $69,716 on average.
If we assume a profit margin of 40% on average, then we can find that a Lendio franchise owner make $55,773 in net profits on average.
| Financial Overview | Percentage of Revenue | Amount ($) |
|---|---|---|
| Individual Franchise Annual Revenue | 100% | 139433.00 |
| Rent | 7.50% | (10457.48) |
| Insurance | 3.75% | (5228.74) |
| Salaries | 15.00% | (20914.95) |
| Franchise Royalty Fees | 3.75% | (5228.74) |
| Utilities | 1.50% | (2091.50) |
| Cost of Goods Sold (COGS) | 18.75% | (26143.69) |
| Labor (Variable) | 9.75% | (13594.72) |
| Total (Expenses) | 60.00% | (83659.80) |
| Net Profit | 40.00% | 55773.20 |
Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.
Payback Period Of Lendio
With an investment of $117,100 and an estimated 40% profit on the average net sales, the yearly profit would be $55,773.
So, to find out how long it will take to earn back the initial investment:
Payback Period = Investment / Yearly Profit = $117,100/ $55,773 = 2.09 years
Based on these figures, it will take approximately 2 years to pay back the initial investment for Lendio. This time period could be longer or shorter depending on your sales, revenue, and profit figures.
Failure Rate Of Lendio
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 47 | 56 | +9 |
| 2020 | 56 | 67 | +11 |
| 2021 | 67 | 121 | +54 |
For the Franchised outlets:
- In 2019, the growth rate was (9)/47×100≈19.14%
- In 2020, the growth rate was (11)/56×100≈19.64%
- In 2021, the growth rate was (54)/67×100≈80.59%
According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.
We can see that the franchised outlets for Lendio grew from 2019 to 2021, showing a growth rate between 19.14% and 80.59%.
Lendio Franchise Training & Support
Lendio provides training of 5-day in-person instructional courses, collaboration building, revenue coaching, regular learning and meetings, lending underwriter assistance, supplementary advertising, management, and other essential aspects of the business franchise with their crew at company headquarters in Utah.
Further role-playing and hands-on teaching are critical to their franchisees’ long-term success once they’ve established into their particular region.
To help their franchisees come up to speed quickly, they offer engaging video training software, franchise resource, and a guidebook available online.
Lendio Comparison
| Company | Lendio | Ameriprise Financial Services |
|---|---|---|
| Founded In | 2006 | 1894 |
| Initial Investment | $63,150-$117,100 | $10,432-$114,480 |
| Franchise-Fee | $46,000 | $1,500 |
| Total Outlet | 94 | 4246 |
| Annual Revenue | $43.2 Million | $11.8 Billion |
Frequently Asked Question
What is the period of the franchise agreement?
The Lendio Licensing Agreement is for five years.
Does Lendio offer any loan or discount?
Most of Lendio’s network of trusted lenders does not provide franchise purchase funding. Nevertheless, some creditors may be eligible to provide you with a loan to help you buy a franchise. You will also get a discount on each subsequent franchise region you purchase. Those who’ve already served in the armed forces are eligible for a 10% discount.
What is the distribution of the territories?
Each area is designed to represent a population of around 20K to 25K small company owners. As a result, some areas will be greater than others in terms of geography.
Is Lendio a franchise?
Yes, Lendio is a dynamic, dedicated, and cutting-edge franchise that consistently earns special awards and recognition.
How much does a Lendio franchise cost?
Opening a Lendio franchise requires an initial investment ranging from $63,150 – $117,100, with a franchise fee of $46,000.
Who founded Lendio?
Lendio is an online marketplace for small business loans. It was founded in 2011 by Bock Blake. He is currently the CEO of the company.
Where is Lendio headquartered?
Lendio was founded in 2011 and is based in Lehi, Utah.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.