The Lending Club Business Loan is a good option for businesses that need a one-time capital investment amount from $5,000 up to $300,000. The payments are made on a monthly basis and could span over a period of one to five years.
Qualification Requirements for the Lending Club Business Loan
To qualify for the Lending Club Business Loan the business has to be operational for at least a year with minimum annual revenue of $50,000. The person who applies for the loan has to own 20% of the business and must have a personal credit score of at least 600 with no tax evasions or recently declared bankruptcies.
If the loan is for an amount under $100,000 then the Lending Club does not require anything to be kept in collateral. However, a personal guarantee for the loan is required which means if you fail to pay the monthly installment then your personal assets will be at risk. For a loan of over $100,000 the Lending Club Business Loan requires a UCC-1 lien of the business’ liquid assets. These assets can include inventory, account receivables and cash.
The Lending Club Business Loan is available to all states except Iowa and Idaho.
How Long Does the Lending Club Business Loan Application Take?
The online application usually only takes 5-10 minutes to complete. You have to submit a copy of the business documents once the application has been approved. You can receive the funds in as little as two days but it normally takes up to a one or two weeks.
The annual percentage rate for the Lending Club Business Loan can be anywhere from 9.8% to 35.7%. This APR is the total annual cost including all the interest payments, fees and one-time origination fee which can be as low as 1.99% up to 6.99%. The rate depends on factors such as the size of the loan and repayment period. You can even repay earlier than agreed upon to reduce the interest costs.