LendingClub Business Loan Review
Last updated July 19th, 2018
Recommended for: Business Loan - Working Capital, Debt Consolidation, Equipment purchase
Lending Club is a peer to peer lender offering easy, fast and affordable business loans. Lending Club is one of the largest online providers with over $20 billion in funds issued. They are a publicly traded company on the NYSE: LC
The highlights that we've researched with this lender is that they offer a fixed interest rate, you'll know in minutes if you are approved and they loan up to $300,000 with APR starting in the 5.99% range.
Since 2007, Lending Club has been bringing borrowers and private investors together. They represent a group of private investors (peer to peer) that lend to individuals and small businesses. They require personal guarantees on loans under $100,000 and a UCC-1 lien (assets within the company) on loans over $100,000. This allows the company to seize liquid assets should your business default on payments.
If you are looking to expand your business, add an additional staff member, purchase equipment or consolidate your existing debt, LendingClub is worth considering.
Terms and Conditions
|Loan Amounts||Business Loans Ranging from $5000 to $300000
Loans can be used for Cashflow, purchase equipment, consolidate debt, hire new employees, Expand your location
|Required Credit Score||600+ Fair Credit To Apply
No recent bankrupticies or tax liens
|Doesn't lend in||Iowa|
|Minimum Annual Income||$50000|
|Types of Income||Business must have a minimum of $50,000 in annual sales|
|Variable Rate Option||Fixed Rates only|
|APR Range||Fixed Rates Starting at:
Excellent Credit 5.99%
Good Credit - 7.0% - 16.0%
Fair Credit - 17.0% - 30.0%
|Loan Term||Terms are 1 to 5 years.|
|Repayment Schedule||Monthly (Notification of Pending automatic Payment)|
|Credit Inquiry||Rate and Initial Application - Soft Inquiry, Loan Acceptance -Hard Inquiry|
|Fees and Closing Costs||No prepayment or penality fees, 1.99% - 8.99% - Origination Fees|
|Secured Loans||Security not required for loans under $100,000|
|Co-Signer||Borrower (must own 20% of business), Joint applicant / co- borrower if applicable|
|Direct Deposit||Yes with Valid Business checking account|
|Loan Purpose||Business Loan|
|Qualifications||US Citizen, permanent/ non-permanent resident with a valid visa|
|Allows Military||Yes - with conditions|
|Insurance||Title Insurance not required|
|Legal Documents Required||U.S.Citizen, permanent/ non-permanent resident with valid documentation|
|Number of Offers||Multiple quotes|
|Customer Service||Dedicated Client Advisor|
In Our View
- Lending Club is a great option if you have a good to great credit score with interest rates starting over 9.77%.
- If your credit score is poor, you may not want to use Lending Club as their interest rates exceed 35%.
- It will take approximately 15 minutes or less to get prequalified and it will not affect your credit score. Funding can be as fast as two days if you have all of your documentation ready.
- Lending Club requires a UCC-1 lien on loans over $100,000
- Borrowers will need to provide a personal guarantee for loans under $100,000
- There are no prepayment penalties
A Lending Club business loan is a great choice if you're looking for quick short-term capital.
71 Stevenson Street, Suite 300
San Francisco, CA 94105, USA
Call a Lending Club Client Advisor 855-846-0153 M-F / 6am-5pm PT