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Lending Club


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5 User Reviews
LAST UPDATED: March 10th, 2020

Lending nearly $11 billion since 2007, Lending Club is one of the world's largest online lenders. Today, they offer business loans, personal loans, auto-refinancing, and patient solutions. Compared to traditional and other alternative lender programs, Lending Club operates at a lower cost, giving borrowers access to a lower APR. *Consumers that choose Lending Club loans are recommended to have a credit score of 620 or higher.

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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 lending company's "$50,000 in annual revenue" requirement is much lower than some other lending sites. This allows smaller businesses that may not qualify for standard business loans to take out a loan with Lending Club.

Lending Club does not require 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 for Lending Club loans if they exceed other benchmarks. 

Flexible Terms

Lending Club account 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. Potential borrowers can read Lending Club reviews on the lending company's website to see what customers are saying about Lending Club's low rates.  


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 what is offered by many other alternative lending sites, have low borrowing requirements, and do not come with a prepayment penalty. Additionally, customers who need fast access to funds may choose Lending Club, as borrowers may get funds in as few as seven days. Since the company is one of the world's largest online lenders and it appears to have a solid foundation in the lender and borrower business, we recommend using Lending Club to take out a business loan.

*Minimum credit score not required.   

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5 Reviews

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Sherry Jacksonville, IL

I had a loan with lending club a while back that I paid off in full. I then decide to come back and apply for another loan, done time later, to consolidate some bills since the interest rate on the first loan was great. So I quickly get approved after applying. They asked for no documents for verification. Again great. Quick and easy. I accept the loan and find out shortly after that I have been duped. My interest rate this time is more than double what it was the first time. Yes I should of looked closely but I trusted lending club and assumed they would match the interest rate especially for a return customer who comes back a while later to them for their financial needs. If you don’t treat your return customers as well as you do new customers how do you stay in business. I will be paying this off and not going back to this company in the future. Nor do I recommend them to anyone. I contacted the BBB and their response basically was it was in the paperwork. Well we all know how online loan paperwork is. Basically just sign. And, We are not putting any emphasis on the interest rate so you are clear. Just digitally sign please and slam the knife is in my back. Thanks lending club for valuing me as a return customer!

1 year ago

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Sammy Johns

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.

4 years ago


Review Source

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Reese Pleasant Grove, UT

I have used Lending Club and it worked for me getting the money I needed fast and easily deposited into my account. Terms were good and also I can have a long term relationship.

2 years ago

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Emiliano Galeano Elkridge, MD

I had lending club for a little while (3-4 months) in 2018 and the website was a pain to log in. And when my loan was sold they didn’t send me anything by mail or email. I luckily got a call from my new loan company

1 year ago

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Tom Pleasant Grove, UT

They do a good job of matching up customers with investors at the right interest rate and risk.

3 years ago

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