Peer-to-Peer 'Lending Club' Expands to Businesses in Growing Online-Loans Field

Peer-to-Peer 'Lending Club' Expands to Businesses in Growing Online-Lending FieldThe Lending Club, a leading online peer-to-peer loan provider, has expanded onto the surging business-lending landscape.
Lending Club isn’t a bank or a direct lender. It connects borrowers with investors willing to lend them money.
That competitive arena is growing fast, especially as small businesses turned away by banks look for non-traditional options.
Biz2Credit.com is an online marketplace connecting small- and medium-sized businesses with lenders and other tools. PayPal, an eBay company, said Thursday that it would expand a program that has provided “tens of millions of dollars” in working capital to businesses that used PayPal in the last six months.
Lending Club Chief Executive Renaud Laplanche had revealed the planned expansion into business lending in December.
It’s definitely a big move, and yet another source for small business entrepreneurs looking to launch or expand their enterprise.
“Everyone recognizes that small businesses are an engine of job creation and economic growth, yet their access to capital has been constrained,” Laplanche said. “We look forward to delivering the same customer-friendly, transparent and affordable financing options to small business owners as we have been providing on the consumer side.”
Lending Club has facilitated over $3.8 billion in consumer loans since its inception in 2007, growing at a pace of over $750 million a quarter.
Lending Club business loans will range from $15,000 to $100,000 initially, increasing to $300,000 in the future.
The loans carry reasonable fixed interest rates starting at 5.9 percent with terms of one to five years, no hidden fees and no prepayment penalties, the company said.
The simplified application process is available online.
“We designed this product to fit the needs of small business owners,” added Laplanche. “Bigger businesses can get large loans from banks, but smaller businesses are not well served by existing banking products from traditional banks.”

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