Lending Club

Lending Club ranks 5th in the list of best online business loans. The largest online peer-to-peer lender is Lending Club. It has made over $50 billion in personal and business loans since its inception in 2006. You can apply for credit in less than 10 minutes without affecting your credit score. Lending Club assigns you a client advisor based in the United States to help you find the best loan for you. If you qualify, you will be required to provide bank and tax statements, as well as other documentation, before receiving your funding (usually within two weeks). If you have good credit and income and can wait a few weeks for funding, Lending Club will get you better rates than the competition.

Make the most of your money with LendingClub, which was recently recognized on Newsweek's America's Best Banks list for its Best Cash Back Checking Account. Superior products and services, such as award-winning checking account, Rewards Checking, which offers 1% cash back, ATM rebates, and more, are designed to help you achieve financial wellness.

Pros

• Clarity: LendingClub’s terms are so clear, and their pattern of service so well established, that users can know what their experience will be before they even sign up. The exact dollar figure you’ll pay for the amount of loan you that received, across your 36 or 60 month term, will be listed to the cent before you ever commit to the loan. Other companies have hidden fees like prepayment penalties, but prepayment is free with LendingClub. All the information you need is easily accessible on their website.
• Speed and Reliability of Loan Financing: You can apply online and receive a pre-approved offer in minutes. That’s one point of difference between LendingClub and its major competitor, whose investors are not always willing to fully supply a loan (which is then rejected, though resubmission is allowed). For most users of the LendingClub system, finances are usually funded in less than 10 days. The site has some of the highest security provisions made available to borrowers on financial platforms, so users can be sure that these transactions will be safe.
• Affordable. LendingClub’s possible interest rate/APRs are somewhat lower than their competitor’s: From about 6% to about 30%. Users with pristine credit can enjoy extremely low APR levels, but even users with slightly lower credit scores can still find affordable money through this method, comparable to the APR of very affordable credit cards. As mentioned above, payments will be communicated in great detail before you ever commit to a loan, and there are no hidden fees or other costs.
• Availability Nationwide. Peer to peer lending companies must be approved at the state level, so LendingClub is not available in every state. But it is available in many more states than is its major competitor, making it the most accessible P2P borrowing option for Americans.

Cons:

• Application Requirements. Some users may be required to supply copies of tax documentation. This is a common requirement in this industry, but some users find it inconvenient.
• LendingClub Works Hard Against Default. If you miss a payment, LendingClub is quick to call you by phone. If the payment problem persists, you will probably find your account passed onto collections. Again, this is all in an effort to make default an infrequent occurrence, because LendingClub also has users who are investors! They have to strike a balance between service to both customer bases.

Rating: 4.5/5.0

Enroll here: lendingclub.com