The Truth About Lendigo: Is It the Right Choice for Your Business?
By Efe Akpobome
When it comes to running a business in Nigeria, one thing we can all agree on is that financing is a major wahala (trouble). Whether you’re a small business owner in Lagos or running a shop in Enugu, cash flow can make or break your hustle. This is where platforms like Lendigo come into the picture. But, is it really the savior it claims to be? Let me tell you what I’ve found out about the service, from a personal and critical perspective.
What is Lendigo?
Lendigo is a digital lending platform that provides loans to small and medium-sized businesses (SMEs) in Nigeria. They claim to offer fast, accessible, and unsecured loans to help businesses grow. The process is digitized, meaning you don’t have to step into an office or know one oga or madam at the bank (you know how that story goes).
The platform specifically targets entrepreneurs in sectors like retail, trade, logistics, and professional services. Their promise? Borrow money quickly, repay easily, and grow your business. Sounds sweet, right? But let’s break it down.
The Good Side of Lendigo
I won’t lie, there are some solid advantages to using Lendigo.
Ease of Access
First of all, Lendigo’s process is straightforward. You don’t need to write an epistle or bring an entire file cabinet of documents like you would at a traditional Nigerian bank. With just a few clicks, you can apply for a loan online. They’ll ask for things like your business details, proof of income, and bank statements, but nothing too crazy. For small business owners who are used to the stress of Nigerian bureaucracy, this is a breath of fresh air.
Speedy Approval
In my experience, Lendigo processes applications fairly quickly. Once you submit your details and they verify your information, you can get approved within 24 to 48 hours. For businesses that need money urgently, this is a real blessing. There’s no “come back tomorrow” or “we need to see your chairman.”
No Collateral
Let’s talk about collateral. Most Nigerian banks will ask you to bring something like a house, land, or car documents before they even consider giving you a loan. Not everyone has that kind of asset lying around. Lendigo, on the other hand, doesn’t require collateral. All you need is proof that your business is active and generating income. This makes it more inclusive for everyday entrepreneurs.
Tailored Loans
Another thing I noticed is that Lendigo offers loans tailored to specific industries. For example, if you’re in retail, they’ll structure the loan to suit your cash flow. This level of customization shows they understand the Nigerian market and its peculiar challenges.
The Not-So-Good Side of Lendigo
As much as I want to sing their praises, Lendigo isn’t perfect. There are areas where they could definitely do better.
High Interest Rates
We can’t ignore the fact—the interest rates are on the high side. Depending on the loan amount and repayment period, you could end up paying a significant chunk of your profit back to them. For example, a loan of ₦500,000 might attract an interest rate of 4-5% monthly. That’s about ₦20,000 to ₦25,000 in interest every month, not to mention the principal. For small businesses with tight margins, this can be a heavy burden.
Short Repayment Periods
Their repayment periods are also quite short, usually ranging from one to six months. This doesn’t give businesses much breathing room, especially if you’re dealing with the unpredictable Nigerian economy. Imagine borrowing money to stock up your shop, only to find out that customers are delaying payments or sales are slower than expected. Before you know it, Lendigo is knocking on your door for repayment.
Strict Eligibility Criteria
While Lendigo doesn’t ask for collateral, their eligibility criteria can still be a stumbling block. For example, they require you to have a business account with regular inflows and at least six months of financial history. For many small businesses in Nigeria, especially those operating informally, this might be a problem. If you’re the type that mixes personal and business finances, Lendigo might not approve your loan.
Customer Service Challenges
I’ve heard mixed reviews about their customer service. Some users say they’re responsive and helpful, while others complain about delays and poor communication. For a platform that relies so heavily on trust, this is something they need to work on.
Personal Experience: Is It Worth It?
Let me share a personal story. My cousin, Chisom, runs a small logistics business in Abuja. Last year, he needed money to repair his delivery bikes and expand his operations. He applied for a loan on Lendigo and was approved for ₦300,000 within two days. Sounds great, right?
Well, the repayment turned out to be more stressful than he expected. The high interest rate and short repayment period left him scrambling to meet the deadlines. He ended up paying off the loan, but it put a lot of strain on his finances. Chisom told me, “It’s good for quick cash, but you need to be very sure you can repay on time. Otherwise, you’ll just be giving them all your profit.”
Who Should Use Lendigo?
Based on what I’ve seen, Lendigo is best suited for:
Businesses with steady cash flow.
Entrepreneurs who need short-term loans for specific purposes, like buying stock or equipment.
People who can handle the high interest rates and repay on time.
If your business is still in the early stages or your cash flow is inconsistent, I would advise you to think twice before taking a loan with them.
Lendigo has its ups and downs. It’s a great option for Nigerian business owners who need quick, no-collateral loans, but it’s not without its flaws. The high interest rates and short repayment periods mean you need to be very strategic about how you use the funds.
At the end of the day, borrowing money is a serious decision. Don’t rush into it just because it’s easy. Sit down, do the math, and make sure you can handle the repayments. If you’re not careful, you could end up in a bigger financial hole than the one you started with.
So, what do you think? Have you used Lendigo before, or are you considering it? I’d love to hear your thoughts. Who knows, your experience might help someone else make the right decision.