Lending Club Small Business Loan: Revolutionizing Small Biz Finance

Lending Club Small Business Loan: Revolutionizing Small Biz Finance -

The banks were lending less to small businesses. In 1995, small business loans (loans under $ 1 M) over 50% of all loans that do not for agriculture or housing. By 2012, this number had fallen to below 30%. (Source: Cleveland Fed) This has created a great need for a small business finance solution. Although not the first company to solve this problem, Lending Club small business loan may be the best solution.

need some money for your business? Click here to get our free guide:
How to Get a Small Business Loan obtained

Highlights :.

• Lending Club small business provides a quick approval process. Getting approval comes within minutes for loans.
• to borrow much longer periods than merchant cash advances or convenience capital loans, up to 5 years.
• The interest rates that ⅓ of the popular online small business loans may be services.

Infographic courtesy of Smarter Finance USA

details about Lending Club small business loan program.

Minimum qualifications: 2 years in business and 100,000 $ Sales

loan amounts: of $ 15,000 to $ 100,000

interest: 5.9% - 29.9% $

terms: 1, 2, 3, and 5 years

fees: 1% - 6% one-time origination fee

payment: Monthly ACH payment

personal guarantee: a personal guarantee from an owner with Where to apply 20% or more equity

for these loans: click here

Where to invest in these loans: not available to the public

FitSmallBusiness interview lending Club Tom Green

lending Club known as a marketplace for consumer credit. While individuals to take for business purposes seek loans so could do on the platform Lending Club, they were personal loans, whose rates and conditions were based on the person's credit history. Now Lending Club has a special product for small business borrowers. This product went public on March 20, 2014

Lending Club available Tom Green, its Vice President of New Business Initiatives for an interview about Lending Club business loans made product. In the interview he revealed that business loans Lending Club were directed with $ 100K to $ 5 million in annual sales to businesses, at least two years of operating history, and a "true" wanted commercial loan. to clarify to the question, said Tom Green, that Lending Club product was a loan rather than a merchant cash advance. Merchant cash advances are a popular form of short-term financing, in which a company sells future credit card or PayPal receipts.

Tom Green showed that the business product had many similarities with the consumer credit product. Credit payments include both principal and interest and are made in equal monthly amounts by the borrower until the loan is paid in full at a fixed expiration date. However, businesses borrowers have more options than individuals when it comes to terms with terms of 1, 2, 3, and to borrow 5 years.

Another nice feature of Lending Club small business loan product quick approval. Within a few minutes a potential borrower entity may receive an approval or rejection, and a rate at which they can borrow. the loan finalization requires borrowers paperwork, they provided the information to confirm.

Lending Club business loan from an owner of the company with more 20% equity or more who requires personal guarantee. Regardless of the number of shareholders, only one is needed to guarantee a personal offer promising to pay the loan if the company is not the case.

The most important feature of the Lending Club small business loan is its interest. The interest rates on loans are set from 5.9 to 29.9%.

During my conversation with Tom Green, I asked many times and ways in which the interest on certain loans determined. Each time the question is answered with no special features. He pointed out that the company played the financials, the financial situation of the person who guaranteed the loan, and the length of time the money was borrowed, a role.

However Lending Club highest interest rate for small business loans is more attractive than the effective interest rates of many other companies in the online small business financing space as Kabbage available capital. The effective interest rate for cash advances merchant of Kabbage can not exceed up to 50%. Kabbage, which specializes in the service online retailers selling on eBay and Amazon, is ironically a huge improvement over traditional cash advances, which may have an effective interest rate over 80%.

Comparing Kabbage and Lending Club small business loan is a bad comparison. Kabbage is a provider of very short-term capital, six months or less. Lending Club 'real' loans of up to five years has, and still provide a better interest rate than Kabbage!

Apply for a small business loan with Lending Club.

Need some money for your business? Click here to get our free guide. ->
How to get a Small Business Loan

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