Published By Janet Gershen-Siegel at May 19th, 2018
Note: our Lending Club review was updated in April of 2020.
Lending Club online lender is an online lending company and credit marketplace for investors. They offer term loans. We look at the specifics and drill down into the details in this Lending Club review.
Lending Club is located online here: https://www.lendingclub.com/. Their physical address is:
P.O. Box 39000
San Francisco, CA 94139.
You can call them at: (888) 596-3157. Their contact page is here: https://www.lendingclub.com/company/contact-us?first=true. You can also email them via their contact form, here: https://help.lendingclub.com/hc/en-us/requests/new?ticket_form_id=134447. They have been in business since 2007.
Lending Club works as a kind of credit marketplace. Investors can place as little as an initial deposit of one cent into an account and then invest in a variety of loans. The rate of return for investors historically has averaged between 4.95% and 7.10%.
You can get business loans up to $500,000. Their loan terms range from one to five years. Your business can get a quote in less than 5 minutes. And your funds will be available in as little as 48 hours if you are approved. Your company’s annual revenue has to be $50,000 or more. No recent bankruptcies or liens. Your company has to be in business for 12 months or more. You must own at least 20% of the business and have at least fair or better personal credit.
Lending Club has an origination fee of 3.49% – 7.99%. There is no prepayment penalty. The total annualized rate is 9.77% – 35.97% for loans.
Advantages are that the annual revenue and time in business requirements are not too high. And the funds are available quickly. Another advantage is that there are no penalties for prepayment. Plus the company is transparent about its rates.
Disadvantages include their high annualized rates.
Companies that will do the best with Lending Club are captained by entrepreneurs who can pay back their debts on time or early. These companies need to have some history but they do not have to be runaway successes.
For companies run by entrepreneurs who cannot pay their debts on time, this lender will not be as good a choice as building business credit or getting unsecured business financing or even cash flow financing.
And finally, as with every other lending program, whether online or offline, remember to always read the fine print and do the math yourself. Be sure to go over the details with a fine-toothed comb, and then decide whether this option will be good for you and your company.
In addition, consider alternative financing options that go beyond lending. And that includes building business credit. And you’ll be able to best decide how to get the money you need to help your business grow.
How to Improve Your Fundability™ and Get More Money for Your Business Faster