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LendingClub Business Loan Review of April 2024

ElitePersonalFinance
Last Update: March 11, 2023 • Loan Reviews •

    LendingClub Business Loan Review in a nutshell

    LendingClub Business Loans are one of the best for people looking for refinancing. If you are with good credit score and want to get up to $300,000 business loans, then LendingClub should be one place that you have to go.

    Loan Amount:$5,000 – $300,000
    APR:9.8% – 35.7%
    Min. Credit Score:600
    Approval:1 – 4 weeks
    Terms:3 – 5 years
    Origination Fee:0.99 – 6.99%
    DTI Ratio:N/A
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    What You have to Know about LendingClub Business Loans?

    Fees

    • Origination fee: 0.99-6.99%
    • Non-sufficient funds fee: $15
    • Payment by check fee: $15
    • Late payment fee: Higher of $15 or 5% of payment.
    • No application fees.
    • No annual fees.

    Requirements

    • Min Credit Score: 600
    • Debt-to-income ratio: N/A
    • Credit history: N/A
    • Minimum annual revenue: $75,000
    • Minimum time in business: 2 years
    • No bankruptcies.

    Best for

    • People with a high credit score and time in business.

    Other Facts about LendingClub:

    • LendingClub offers up to $100,000 unsecured business loans.
    • LendingClub offers up to $300,000 business loans with co-signer.
    • They have great customer support.

    The Application Process

    • Register and check your rate. There are no application fees and no obligations. Also, no hard inquiry on your credit that will lower it.
    • Check your terms select the offer that works best for you, and finish your application.
    • Verify your info.
    • Receive your funds. You have to know that LendingClub will make a hard inquiry on your credit if you approve the offer.

    LendingClub vs. Other Top Companies

    Loan Company:Amount:Min. Credit Score:APR:
    LendingClub$5,000 – $300,0006009.8% – 35.7%
    Kabbage$1,000 – $35,000024% – 99%
    CredibilityCapital$5,000 – $350,00065010% – 25%

    While LendingClub has been around since 2006 and has seen explosive growth over the past 10 years – their business loan category is rather new. It has only been around for a little over two years but seems to be a trendy option for some businesses.

    Because the entire application process is handled online, and LendingClub does not have physical branch offices for customers to walk into, their overhead is quite low. They can beat many financial institution’s rates based solely on the fact that they have larger margins to play with.

    The process is straightforward. The application is filled out online, and your business is approved or denied within minutes. This process has no impact on your credit score because they only utilize a soft credit check to validate your credit rating.

    The funding can take as little as two days but can take up to 14 days maximum depending on the need.

    What Businesses Would Be a Good Fit for LendingClub?

    A business that needs a large loan but cannot qualify for a traditional bank loan would be a great candidate for a LendingClub Business Loan.

    A business that needs cash fast and has decent credit. With LendingClub business loans, you get your money within 7-14 business days.

    How Does Collateral Work?

    LendingClub files a UCC-1 lien. This lien is a type that would allow LendingClub to seize the assets of your business if you default on the loan.

    They would seize inventory, accounts receivable, and cash in the business. They would not, however, be allowed to seize from you personally. Despite this, you have to offer a personal guarantee, which means you are personally responsible for the loan.

    What Documents Do I Have to Submit?

    Once you are approved, you will be required to send in the following documents:

    • Three months’ worth of bank account statements.
    • IRS Form 4506-T.
    • Business tax returns.

    The Process

    • Step 1

    Fill out the application and get pre-qualified. This should take no longer than 5-10 minutes, and no documents are needed right off the bat.

    You can easily fill out the application and check to see if you qualify and your rates without affecting your credit.

    You will be asked for the following basic information:

    • Legal name.
    • Address.
    • Phone number.
    • Date of birth.
    • Gross sales last year.
    • Net profit last year.
    • Personal annual income.
    • Your ownership percentage of the business.
    • Monthly expenditures.
    • Step 2

    If you qualify after Step 1, you will proceed to your quote. The quote will give you different rates, terms, and origination fees.

    For example, you might be offered:

    • $50k loan – 12 monthly payments of $4,464 at an interest rate of 12.9% and a one-time origination fee of 4.99%.
    • $50k loan – 24 monthly payments of $2,422 at an interest rate of 14.9% and a one-time origination fee of 5.49%.
    • $50k loan – 36 monthly payments of $1,856 at an interest rate of 19.9% and a one-time origination fee of 5.99%.
    • Step 3

    Full details about the loan, including the estimated final repayment date, are delivered to you. You must enter your business information, such as Tax ID and DBA information.

    • Step 4

    Provide your bank account information. You will enter the standard account number and routing number.

    • Step 5

    You will now be required to submit the required documents mentioned above. These included bank statements, IRS Form 4506-T, and the previous year’s tax return.

    Not having this documentation handy is the only thing that can really hold the process up. Some people have to get these documents from their accountant and then scan and upload them.

    Oddly, LendingClub does offer a fax option – who still uses fax? I would not think that a forward-thinking company like LendingClub would even offer this as an option, but I guess enough people asked that they made it an option!

    • Step 6

    You will receive an email to verify your bank account and email address.

    • Step 7

    LendingClub takes the time to verify all information at this point. In most cases, borrowers will receive exactly what they were approved for. In rare cases, the deal may fall through due t a discovery by LendingClub that they do not like.

    At this point, LendingClub does perform a hard credit check.

    Conclusion

    If you meet the qualifications and need quick cash for your business, LendingClub business loans can be a great way to get the cash you need in as little as 2 days!

    Everything can be done quickly online. No need to walk into a bank. No need to create a sales pitch or extensive financial projections. All you need is 10 minutes and a computer. If you get pre-qualified, you will need a few key documents, but these are standard.

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