Lending Club is the country’s largest peer to peer loan provider operating since 2007. The company offers unsecured personal loans as well as small business loans. Lending Club offers its clients a quick access to cash and flexible repayment terms. It is a good option for small businesses that are looking to expand or are in need of cash. Lending Club offers up to $300,000 as a term loan or in lines of credit. The company has reasonable interest rates ranging from 5.99% to 35.89% APR. Lending Club requires borrowers to have a credit score of at least 600, and borrowers with a good credit score are more likely to get good APR’s. The company also offers flexible terms for paying back the loan, ranging from 1 to 5 years.
To qualify for a Lending Club’s loan, you should have owned the business for the last two years and your business must have an annual revenue of at least $75,000. The company only requires collaterals if you are applying for a loan or line of credit above $100,000. For amounts less than $100,000 the company requires signing a UCC-1 lien. Approval of your application is entirely dependent on your financial strength, and it may not be the best option for businesses that are new or very small. The company offers competitive interest rates which although may be slightly higher than banks, they are still lower than many similar business loan providers.
Lending Club’s loans are not a good option for individuals who don’t have a good credit score. While the minimum APR is 5.99%, it can be as high as 35.89% for individuals who don’t have a good credit score. The company also charges a one-time origination fee ranging from 1% to 6%, along with a $15 for payments by cheque and any unsuccessful payments. Although the application process is simple and usually takes no more than 10 minutes to complete, the availability of funds is not equally quick and it can take up to 2 weeks for your funds to be available. It is thus not a good option for businesses that have immediate cash needs. Additionally, most new and small businesses won’t qualify for a Lending Club’s loan.