Lending Club is the largest peer-to-peer loan marketplace in the world. Not surprisingly, it also offers some of the best rates and terms available. As of April 2015, Lending Club had funded $9.26 billion in loans and provided investors with a median return of 8.3%. The secret of its success is simple, a fully online operation, which keeps the overhead in check, and low interest rates that compete with traditional lenders. Lending Club is based in San Francisco, California, was established in 2007, and has an A+ rating with the BBB.

How Does Lending Club Business Loans Work?

Lending Club uses an online marketplace platform to connect investors and borrowers. Small business owners who are interested in a loan must complete an online application in which they provide information about their business. Investors then select which loans they wish to invest in. Once a loan has been fully funded by investors, funds are deposited directly to the borrower's bank account. Applicants usually receive offers from investors in just minutes and can assess their options without any impact on their credit score.

What Are Lending Club Business Loans' Interest Rates?

Interest rates for Lending Club business loans range from 5.9% to 25.9%. The origination fee ranges from 0.99% to 5.99%. As with most business loans, the lower interest rates are only available to borrowers with excellent credit and solid financial backing. The average rate for all loan terms and risk profiles was 13.19%. However, borrowers with an A risk profile had an average interest rate of 7.65%.

How Much Money Can I Borrow from Lending Club Business Loans?

Lending Club offers business loans ranging from $5,000 to $300,000. Repayment terms range from 1 to 5 years.

Which States Does Lending Club Business Loans Operate In?

Lending Club operates in all states except Iowa, Idaho, North Dakota, Rhode Island and Maine.

What Is Lending Club's Business Loan Application Process Like?

The entire application process is done online and it can take just a few minutes from completion to receiving offers. Lending Club does not require appraisals, business plans or a title insurance. Loans under $100,000 don't even require collateral. However, Lending Club does look for businesses with at least 2 years in business, a minimum of $75,000 in annual sales and the borrower must own at least 20% of the company and have a credit score of at least 660.

How is Lending Club Better than Other Lenders?

Lending Club provides low fixed interest rates with modest origination fees and no prepayment penalties. Repayment terms are longer than for most online peer-to-peer lenders: 1 to 5 years, and small business can borrow up to $300,000. The entire application process is online, takes only minutes to get a response, and it doesn't hurt your credit score to shop around for the best deal investors are willing to offer.

  • Interest APR
    6% - 26%
  • Loan Amount
    $5000 - $300000
  • Max Loan Term (Months)
  • Minutes
  • Same Day
  • 1-7 days
  • 1-2 weeks
  • 2-4 weeks
  • Min Revenue
  • Min Years in Business
  • Origination Fee
  • Credit Type Offered
    Unsecured Term Loan
  • Intended Use of Funds
    Equipment Purchase Lease Improvements New Location Product or Service Expansion Working Capital
  • Institution Type
    Peer to Peer Lending
  • Approval Speed (Hours)
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0 votes

My businesses credit is in very good standing, so when I was looking for a loan for marketing purposes, I needed a company that didn't put a hard inquiry on my credit. I thoroughly searched the internet, and was having a hard time finding a lender that fit my needs. I came across Lending Club, and when I found they only put a soft inquiry on your credit, I decided to apply. I was so relieved when my businesses credit wasn't affected, and I'm happy to announce that the loan ... helped my company grow significantly. More Less

0 votes

For small business loans, Lending Club has many factors that determine your interest rate and monthly payments. Our business recently had a bit of a set back after a fire in our office, but Lending Club understood and was able to give us a reasonable rate. We received a loan in our bank within three days, and have since been able to rebuild our office and get our business back on track. Lending Club is super easy and they are great to work with.

0 votes

Lending Club is not a reliable lender. I took out a loan to grow my business, and in turn, I was able to pay the loan back quicker than expected. When I went to make extra payments, I was quickly declined. Then I tried to pay more on the scheduled payment date, and was denied for that as well. I contacted the support team, and they couldn't give me a straight answer why. They also told me that I should've figured out the payment options before I took out the ... loan. Now I'm stuck paying the interest, when I'm able to lower it by paying the loan off quicker. More Less

0 votes

I've been using Lending Club for some time, and thus far, it's been great for me and my consulting firm. My only issue is the fee that Lending Club charges for their service. It isn't a huge fee, but it is a fee none the less. I've used lenders before, and haven't been charged a fee. Generally, I feel that the interest rates and APR are enough. But I've stayed with Lending Club simply because I love their service and reliability. I haven't had any other issues so far, and ... will continue to use them. More Less

0 votes

I happened to get an advertisement for Lending Club at my business location. At the time, I was thinking about adding to our marketing efforts and putting more money in advertising. I looked over the Lending Club club flyer, and decided to apply with them. The speed at which I got my loan is incredible- I've had to wait weeks with other lenders. I got the loan within four days. It was so easy and I've been able get a great return on my new marketing and advertising efforts.

0 votes

It was so easy to get a small business loan from Lending Club. I've gotten loans before where it was so stressful, and I could barely manage it. I obviously don't have all this extra time to spare, and other lending companies expect you to put SO much energy into actually getting a loan. But Lending Club gets that people who are getting small business loans are actually small business owners, and they really make it easy and quick. They were great to work with.

0 votes

I don't understand the payment system they have in place! After taking out a small business loan, we began working to pay it off. My husband, who is also my business partner, recently inherited a small amount of family money. We sent in a check to pay off a big chunk of the loan, and even though it's been three months, that check hasn't been credited. We called to confirm that they had received it, and they stated they did, and that it would be credited to our account as ... soon as it was processed. In the mean time, we've been charged the monthly amount. We want to pay it off as early as possible, but they don't seem to "process" their had written checks very quickly. More Less

0 votes

I feel such a relief since receiving my loan from Lending Club. I had bills piling up at home, and my business credit cards were taking up a huge chunk of my money. My wife and I began taking money out of our own pockets, and stopped taking a paycheck from our small business. Since getting a loan, we've been able to pay off the business credit cards and now only have one monthly payment. The interest rates are not bad, and we've really been satisfied with the loan we ... received. More Less

0 votes

I heard great stuff about this company and applied for a loan. Their representatives were very assertive and helpful but finally, I was denied a loan. Reason - Thin credit line. At least, that's what I think is the reason. Bummer! :(

0 votes

I have enjoyed two loans from this company at much lower interest rates than my own bank. Always a pleasant experience. greatly recommended to anyone

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