If you are looking for a loan for your small business, there are other places to consider besides the traditional option of your local bank. One of these is peer-to-peer lender Lending Club.
The company steps in when banks are reluctant to make small loans to their customers. Lending Club’s approach gives individuals and financial institutions the opportunity to compete to offer loans to borrowers. The company has been offering individual loans for some time. But more recently, Lending Club has also expanded into offering loans specifically tailored to small businesses. Lending Club CEO Renaud Laplanche tells Bloomberg:
“It’s part of our strategy of being more useful to more people and expanding our product line and eventually offering all types of credit.”
Lending Club says it allows businesses to apply online with no impact on credit score. On the small business page of the company’s website, Lending Club says loans are available for up to $100,000. That’s higher than the amount generally available for personal loans. If you qualify, you may receive more than one loan offer. Choose the one that suits your business the best, and the money will be made available to you within a few days.
The fixed interest rate starts at 5.9%, according to Lending Club’s website, so you shouldn’t have to worry about it going up while you are paying it off. The site also says Lending Club gives businesses the opportunity to either pay the loan out over several years or prepay it early to reduce interest rates without penalties or other fees.
The company also says it allows perspective lenders to discuss options with a dedicated client adviser. To learn more about the small business lending program before applying, you can call 855-846-0153 or email the company at firstname.lastname@example.org.
As mentioned earlier, Lending Club does offer more than just business loans. The company also offers personal loans of up to $35,000 with varying interest rates depending upon credit. More than 250,000 people have taken out over $4 billion in personal loans through Lending Club so far, the San Francisco Chronicle reports.
The company recently raised $65 million from T. Rowe Price Associates, Inc.; Wellington Management Company, LLP; BlackRock and Sands Capital and borrowed another $50 million to expand its offerings, TechCrunch reports.More in: Lending