SAN FRANCISCO, Oct. 15, 2015 /PRNewswire/ -- Lending Club (NYSE: LC), the world's largest online marketplace connecting borrowers and investors, has rolled out a new multi-draw line of credit product, giving small businesses convenient and flexible access to affordable credit.
"Small business owners continue to experience insufficient access to affordable and transparent credit that can give them the confidence to make investments and create jobs," said Lending Club founder and CEO Renaud Laplanche. "Our platform's new multi-draw line of credit product gives them a predictable, flexible, low cost way to access credit 'on demand' if and when they need it."
"Small businesses are starved for capital, and we welcome new products that offer more options in the marketplace as credit cards may be too small, cash advances too expensive and not transparent, and bank lines can be very hard to get," said John Arensmeyer, founder and CEO of Small Business Majority. "It's especially important these options offer reasonable terms and transparency so business owners can obtain lines of credit without worrying about hidden costs or exploitative provisions. Lines of credit provided through companies like Lending Club that are committed to transparency and responsibility are greatly needed."
Lending Club had been beta-testing a multi-draw line of credit product over the last few months with a short list of select business partners including Ingram Micro Inc., the world's leading technology distributor, to fine tune the experience.
"Ingram Micro wanted to expand its financial offerings and provide its channel partners with an efficient, flexible, and transparent approach to securing more capital to better service the needs of small businesses nationwide," said Kelly Carter, Sr. Director of Credit Development for Ingram Micro Inc. "The new Ingram Micro Lending Club solution enables our channel partners to purchase technology directly from Ingram Micro via a credit line of up to $300,000. It's fast, it's easy and our channel partners are eager to take advantage of it."
Lending Club launched a term loan for small businesses in 2014. The line of credit is similar in that businesses can visit lendingclub.com/business to apply for a line of credit and see if they qualify in minutes, with no impact to their credit score. As with the term loan, to qualify, they must have been in business for two years and be able to show revenue of at least $75,000 annually. What sets the line of credit apart is instead of receiving a lump sum all at once, and paying interest on it from the beginning, business owners can draw what they need at that time, thus potentially reducing their interest cost. There are no fees or costs to open the line, which ranges from $5,000 to $300,000. Instead, businesses pay a 1-2% fee when they draw on the line. Lending Club piloted the product with Alibaba.com and Ingram Micro customers, and is now making it available to all qualified small businesses. Interest rates start at 6%.
Business owners can find out more about the terms and conditions of the credit line at www.lendingclub.com/business.
About Lending Club
Lending Club's mission is to transform the banking system to make credit more affordable and investing more rewarding. The company's technology platform enables it to deliver innovative solutions to borrowers and investors. Since launching in 2007, the Lending Club platform has facilitated over $11.2 billion in consumer loans and has more than doubled annual loan volume each year. We operate at a lower cost than traditional bank lending programs, so we're able to pass the savings on to borrowers in the form of lower rates and to investors in the form of solid returns. Lending Club has been prominently recognized as a leader for its growth and innovation, including being named one of Forbes' America's Most Promising Companies three years in a row, a CNBC Disruptor two years in a row, a 2012 World Economic Forum Technology Pioneer, and one of The World's 10 Most Innovative Companies in Finance by Fast Company. Lending Club is based in San Francisco, California. More information is available at https://www.lendingclub.com. Currently only residents of the following states may invest in Lending Club notes: AR, AZ, CA, CO, CT, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY (accredited investors), LA, MA, ME, MN, MO, MS, MT, NE, NH, NV, NY, OK, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, or WY. All loans made by WebBank, a Utah-chartered Industrial Bank, Member FDIC.
SOURCE Lending Club