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Lending nearly $11 billion since 2007, Lending Club is one of the world's largest online funders. Today, they offer business loans, personal loans, auto-refinancing, and patient solutions. Compared to traditional and other alternative loaning programs, Lending Club operates at a lower cost, giving borrowers access to a lower APR.

The Good

  • Application Requirements
  • Flexible Terms
  • Low Rates

Application Requirements

The "one year in business" requirement that Lending Club has is standard for bank loans, SBA loans, and even alternative lenders. However, the company's "$50,000 in annual revenue" requirement is much lower than some other lenders. This allows smaller businesses that may not qualify for standard business loans to take out a loan with Lending Club. Lending Club does not provide a minimum credit score for applications on their website because they don't want borrowers to be deterred. In an email to Best Company, a Lending Club representative wrote that they generally recommend a credit score of 620 or higher, although there is no rule. People with a lower score may still be approved if they exceed other benchmarks.

Flexible Terms

Borrowers can select loan terms from one to five years. These term lengths are longer than many of their competitors' options. Longer terms allow business owners to take out more money at once for big purchases such as equipment, purchasing, or expansion. Even with the longer term lengths, there are never any prepayment penalties or closing fees with Lending Club business loans.

Low Rates

Interest rates for Lending Club's business loans range from 5.9 percent to 25.9 percent. APR for a $100,000 loan over one year comes up to $0.32 on the dollar. These costs are slightly below industry averages and better for the borrower.

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The Bad

  • Fees
  • Long Terms Only


Depending upon your initial loan rate, there will be a loan origination fee deducted from your principal. Lending Club's business loan origination fee ranges from 0.99 percent to 6.99 percent. The loan offer you select will explicitly state the origination fee.

Long Terms Only

Some borrowers may want the long-term loans that Lending Club offers (one to five years). However, other businesses may be seeking shorter terms in months. For the latter, you can take out a one-year loan and pay it back early with no prepayment penalties. Additionally, Lending Club offers a Line-of-Credit product that may be better suited to short-term financing needs.

The Bottom Line

Overall, Lending Club business loan origination fees increase the total cost of the loan, which decreases the amount available to the borrower. We suspect that higher-risk customers may pay a higher interest rate, since no collateral is required for Lending Club's unsecured loan product, but this practice is typical of lenders and investors. These loans are more affordable than many other alternative lenders, have low borrowing requirements, and do not come with prepayment penalties. Additionally, customers who need fast access to funds may choose Lending Club, as borrowers may get funds in as few as seven days. We recommend using Lending Club to take out a business loan. Visit Site

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Sammy Johns

November 24th, 2016

Best customer service out of all the companies I spoke with. They provided me with great help and I couldn't have asked for better people. I needed help to get my business off the ground and they were able to do that for me.