Launched in 2007, Lending Club offers business owners quick access to funds, great repayment terms, an annual percentage rate, and an opportunity for businesses to build good credit. Lending Club is a peer-to-peer lender that offers business owners lines of credit and business loans of up to $300,000.
Business loans offered through Lending Club are best suited for well-established businesses with a good business history that need quick access to cash and funding, or want to expand their business.
Lending Club Business Loan – Quick Overview:
- Lending Club provides business loans in all states except Idaho and Iowa.
- Lending Club provides business loans to just about any type of business, but their loans cannot be used for adult entertainment or gambling.
- Lending Club requires businesses to send in a business tax returns, IRS Form 4506-T, and three months’ worth of business banking statements.
- To qualify for a Lending Club business loan, the person applying for the loan must own at least 20% of the business.
- For business loans and lines of credit larger than $100,000, collateral is required.
Why Lending Club is Better than Most Lenders
Loan approval requirements are LESS strict than banks. To get a loan from a bank, they generally require a better-than-average personal credit score and require you to back the loan with assets as collateral.
Lending Club is much more lenient and has less restrictions than banks for business loans. Lending Club only requires collateral backing on loans greater than $100,000 and you only need a minimum personal credit score of 600.
Lending Club offers very low interest rates on business loans. Lending Club’s business loan interest rates on term loans are as low as 5.9% and has a one-time origination fee as low as .99%. On their lines of credit, the interest rate is as low as 6% and their draw fee is only 1 to 2% for each time you borrow.
The APR you get on a business loan from Lending Club will depend on your loans size, the loans length and repayment terms, your business’s annual revenue, your personal credit score, and how long you have been in business. If you have a good business and excellent credit you’ll more than likely qualify for their lowest rate.
Quick and fast funding and access to cash. Lending Club’s application process and time it takes to receive funding is much faster and easier than banks and other lenders. It only takes five minutes to complete their online application and get prequalified for a business loan. Then without impacting your credit score, you’re able to get a business loan quote or line of credit. Lending Club only requires you to submit business documents after you have already been approved to receive financing for your business.
Once you’ve been approved for a loan, you can receive funding in as quickly as two days. Depending on how quick you submit your documents and the loans size, sometimes it can take up to a week.
Lending Club’s business loans offers flexible borrowing options to business owners. Business owners can borrow funds as they need to with Lending Clubs business line of credit. A business line of credit is nice for business owners because they only pay interest on the amount of money that they take out from the line of credit. A business line of credit can be beneficial to business owners that wish to have quick access to funds but don’t need a large upfront lump sum of cash.
No early repayment penalty. Lending Club does not charge a penalty or fee to pay off your business term loan early, which can save you a lot of money in interest. Most other lenders (especially online lenders) will charge you fee or penalty charge if you choose to repay your loan early, and require you to pay the full life of the loans interest and fees regardless if you pay off the loan early.
Lending Club Business Loans are Great for ALL Entrepreneurs
Lending Club’s business loans offer entrepreneurs and business owners quick access to cash and funding for their businesses. Their application and approval process is much faster and easier than banks and most other online lenders.
See what business loans and terms you qualify for in five minutes or less by starting an application on Lending Club:
Apply and learn more on Lending Club’s secure website.