Published on 21 Jun 2022 Time 5 min read Last update by 29 May 2024

Lendio: The Truth About the Payday Loan Industry (2024)

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Lendio is in the business of connecting people seeking loans with lenders. They market themselves as a loan marketplace. It is led by Brock Blake as its CEO. Lendio was founded in 2006 and has since grown to 120+ locations.

How is Lendio Franchise Positioned in the Professional Business Services Industry?

The payday loan industry fills the need for small, short-term credit throughout the country. Analysts estimate that 20,600 payday advance locations across the United States extend about $38.5 billion in credit to millions of working Americans in 19 million households. In addition to being a valuable source of credit for many consumers, the industry makes significant contributions to the U.S. and state economies employing more than 50,000 Americans who earn $2 billion in wages and generating more than $2.6 billion in federal, state, and local taxes.

How Much is a Lendio Franchise?

The initial Lendio Franchise Fee is in the range of $34,500 to $46,000. You have to pay this upfront fee when opening a Lendio franchise.

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Lendio Franchise Cost

The estimated total investment necessary to begin the operation of a Lendio Franchise ranges from $45,650 to $117,100. The following costs are part of the upfront costs included in the initial investment for a Lendio. Many of these are one-time fees that are needed to launch the franchise. Review the chart below to see how much it costs to buy a Lendio franchise in 2022.

Type of Fee Amount To Whom Payment Is To Be Made
Initial Franchise Fee $34,500 to $46,000 Us
Opening Kit $1,500 to $7,500 Us
Rent – 3 months $0 to $9,000 Landlord
Utility & Security Deposits $0 to $1,000 Various Suppliers
Leasehold Improvements $0 to $5,000 Various Suppliers
Furniture and Fixtures $0 to $2,500 Various Suppliers
Computer System, Equipment & Supplies $1,000 to $7,500 Various Suppliers and Us
Business Licenses $250 to $2,500 State and local government, as applicable
Legal and Accounting Fees $1,000 to $2,500 Various Suppliers
Initial Marketing Expenditures $3,000 to $12,000 Various Suppliers
Insurance $1,000 to $1,500 Various Suppliers
Technology Fees – 3 months $900 Us
Travel Expenses for Initial Training $1,000 to $7,200 Various Third Parties
Additional Funds – 3 months $1,500 to $12,000 Employees Suppliers
TOTAL $45,650 to $117,100

Lendio Franchise Requirements

Lendio requires a liquid capital of between $55,000 and $65,000. The steps you need to take in order to start a location are given in the graphic below:


Owning a Lendio Franchise Requires Ongoing Fees

Type of Fee Amount Due Date
Business Generation Fee 30% to 70% of Gross Revenues, subject to a minimum quarterly Business Generation Fee Payable twice monthly by check or electronic funds transfer
Extraterritorial Fee 5% of Gross Revenues received respecting Clients serviced outside of your TPR Payable at same time and in same manner as Business Generation Fee
Shared Account Fee 30% of Gross Revenues received from a Client in another franchisee’s TPR Payable at same time and in same manner as Business Generation Fee
Technology Fee Currently $300 per month Payable at same time and in same manner as Business Generation Fee

How much do Lendio franchise owners make?

Lendio does not provide any financial information on how much its franchises make but advertises a 70-30 revenue split between franchisee-franchisor for the commissions that they earn on the loans.


2021 Lendio Average Franchise Sales Estimate: $139,433

Initial investment (midpoint) %Profit margin of average franchise sales Estimated Profits Time to recoup investment
$81,375 30% $41,829 4.5 years
$81,375 40% $55,773 4 years
$81,375 50% $69,716 3.75 years

Based on the median sales provided by Lendio’s franchise locations, at an average of a 40% profit margin it will take around 4 years to recoup your investment. This is longer than other franchise opportunities. You may not get a 40% profit margin which would elongate getting a return on your investment.

Is the Franchise Profit Worth the Franchise Cost?

To assign a valuation multiple for Lendio franchises, we leverage estimates from DealStats, a database of acquired private company transactions sourced from U.S. business brokers and SEC filings. We reviewed the larger franchise industry as well as selling price multiples for larger systems where more transaction data is available.

When you go to sell a Lendio franchise based on the revenue multiple of 1 and net sale estimate in 2021 of $139,433, it would sell for $139,433. This is significantly more than the midpoint investment of $81,375 and will recuperate your initial investment in full.

The more franchises you own, the more earning potential you have as private equity firms become interested in your business instead of individual owner-operators.

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Lendio (Franchisor) Income Statement Key Insights:

Statements of Income

2021 2020
Marketplace lending commissions $13,762,044 $4,029,034
Franchise fees 561,782 339,418
Training fees 290,697 230,500
Technology, brand, and royalty fees 467,106 135,082
Total revenues 15,181,629 4,734,034
Operating expenses:
Employee compensation 2,578,947 1,636,095
Selling and marketing expenses 1,589,027 202,896
General and administrative 460,902 261,817
Commissions paid to franchisees 7,602,155 2,284,120
Franchisee training and other services 218,292 84,311
Total operating expenses 12,449,323 4,469,239
Income from operations 2,732,306 264,795
Interest income 391 2,780
Net income $2,732,697 $267,575

Lendio is a very profitable business for the franchisor with retained earnings of $2.7 million in 2021. Compared to 0.2$ million in 2020, they saw an increase of over 1000%. While this might be a good indication of high growth as a company overall, this can also be indicative of the fact that Lendio’s financials have been manipulated at some point in the process. We recommend talking to Lendio about their business model and revenue generation practices before entering into business with them!

How many Lendio units have opened and closed?

System-wide Business Summary For years 2019 to 2021

Business type Year Business at the Start of the Year Business at the End of the Year Net Change
Franchised 2019 47 56 +9
2020 56 67 +11
2021 67 121 +54
Company-Owned 2019 0 0 0
2020 0 0 0
2021 0 0 0
Total Businesses 2019 47 56 +9
2020 56 67 +11
2021 67 121 +54

Over the last three years, the company has been expanding rapidly. It had 47 locations at the start of 2019. As of the end of 2021, it was at 121. That is a 150% increase. Lendio franchises have been opening at an average rate of around 25 locations per year in that period.


The credit industry in America is one of the biggest ones and Lendio offers a piece of that industry. Lendio had 1000% revenue growth in a year and does not provide any information on how much franchises make so we recommend speaking to existing owners about their revenue split to determine the viability of these franchises.

While this may be the business for you, make sure to also check out other businesses offered on Vetted Biz and in the Professional Business Services Industry.

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