Lending Club Business Loans
LendingClub is a peer-to-peer lending company that’s been around since 2007 and has facilitated over $28 billion in business loans by connecting borrowers with investors. They offer term loans for small businesses, among other products like personal loans, auto financing, and patient solutions.
How it works is borrowers can apply for a business loan of up to $500,000 online in less than five minutes, and immediately view offers—all without harming one’s credit score. There are no prepayment penalties and borrowers can eliminate interest costs by paying off any time.
While their loans have a few requirements, such as a minimum of 1 year in business and at least $50,000 in annual revenue, they’re much more lax than traditional banks and other online lenders which often require 2 years minimum in business, $100,000 or more in yearly revenue, and collateral.
LendingClub Types Available
Terms Loan—Good for: Borrowers with fair credit or better
- Loan amounts: $5,000 – $500,000
- Loan terms: 6 months – 5 years
- Requirements: Fair credit or higher, 1 year in business, $50,000 yearly revenue, no recent bankruptcies or tax liens, you own at least 20% of the company
While LendingClub doesn’t mention a clear cut minimum credit score needed to apply, they do generally approve only those with fair credit scores or better, which falls in the 620-659 range. With that said, LendingClub evaluates other factors as well when making a decision, and if your business has solid performance, you might be able to get approved even if your score is a little less.
Additionally, their requirements are pretty lax compared to most banks and some other online lenders. You only need an annual revenue of $50,000 and 1 year in business. Many lenders will require 2 years in business and a minimum of $100,000 in annual revenue. Since they’re limited in their small business loan offerings, they may not be a great choice for startups and new businesses, however.
- Initial application is quick and easy
- Requirements aren’t strict compared to other lenders
- Transparent about fees and restrictions
- Funds in as little as 1-3 business days
- Not a good option for new businesses
- Origination fee of 3.49% – 7.99%
You can apply for a business loan with LendingClub using their brief online form, which should only take a few minutes to fill out. The application will ask for some basic information about you, your business, and your financial profile. Best of all, it won’t affect your credit score.
Information you’ll need to provide:
- Loan amount
- What the loan is for
- Business name and address
- How long you’ve been an owner
- Number of employees
- Legal structure (i.e. LLC, Sole Proprietor, etc.)
- Gross sales and net profit from previous year
- Personal annual income
- Your ownership of business
- Monthly payments (rent/lease, loans, etc.)
You’ll also need to create a password for your profile when applying. Once you submit this information, you’ll be presented with multiple offers immediately that include rates and fees.
If you decide to move forward with a specific offer, your identity will be verified by LendingClub (with a hard credit check) and you’ll need to provide a few bank statements with your application. Borrowers can receive funds in as little as 1-3 business days.
Privacy & Security
LendingClub has a good reputation as a lending marketplace and has facilitated billions in loans. They operate fully online and utilize practices that are standard by law to ensure the safety and security of sensitive user information.
All loans are funded by WebBank, an FDIC nationally insured bank, through the LendingClub platform.
You can get in touch with LendingClub via phone or email. Their hours are Monday – Friday from 6:30am – 5:00pm PT.
LendingClub also has a help page for each of their products, including small business loans where borrower can learn more about the application process, rates and offers, payments, your account, and declined applications.
Overall, LendingClub is a solid platform for connecting with investors who can fund your small business loan. The application process is fast and easy, doesn’t harm your credit score, and gets you offers that you can easily compare before deciding to move forward—saving valuable time.
LendingClub has been around for over a decade and has facilitated billions in loans. Online reviews for this free peer-to-peer lending company are mostly positive, and they’re a great option for businesses with fair credit score or borrowers looking for more loose qualifications.
If you’re looking for a painless way to compare offers and see what you qualify for, LendingClub is a great start in your business loan search.
595 Market Street, Suite 200
San Francisco, CA 94105, USA