Our reviewers evaluate products and services based on unbiased research. Top Consumer Reviews may earn money when you click on a link. Learn more about our process.

LendingClub Review

Sunday, April 21st

2024 Business Loan Provider Reviews

LendingClub Review 3.5 Star Rating

LendingClub

3.5 Star Rating
  • Loan amounts spanning between $5,000 to $500,000
  • Fixed monthly payments
  • No pre-payment penalty clause
  • Dedicated client advisor to guide throughout the process
  • Swift online application and funds disbursement

LendingClub is a prominent online lending platform that caters to both personal and business financial needs. Its personal loans range from $1,000 to $40,000, providing a flexible solution for various financial requirements such as debt consolidation, home improvement, or major purchases.

Business loans up to $500,000

LendingClub's Business Loans service, in collaboration with the Accion Opportunity Fund, offers loans ranging from $5,000 to $500,000 to help businesses grow. These loans come with a fixed monthly repayment plan that spans from 1 to 5 years, providing businesses with financial predictability. The application process is entirely online, making it convenient and quick for applicants. They don't impose any prepayment penalties, offering the flexibility to clear the loan ahead of schedule.

Application process is easy to understand

The application process for LendingClub is an online, convenient, and rapid service. It revolves around several stages meant to fine-tune the specification of the loan to meet the applicant's precise requirements. It kicks off with the applicant describing their requirements and ends successfully with the transfer of funds to the bank account.

  • The applicant initially needs to discuss their details and the nature of the debt they want to consolidate. Subsequently, they will navigate through different loan and interest rate options and elect the one that satisfies their needs the best.
  • The next step requires confirmation of the details mentioned by the applicant during the signup process, which sometimes may include sending further documents or data about their business or their vehicle (if being used to secure the loan).
  • Upon the completion of these stages, the loan is automatically deposited into the applicant's bank account.

Rates and fees not openly disclosed for business loans

LendingClub doesn't provide specific information on business loan rates and fees. That is likely due to the more dynamic conditions around loans and will need to be part of your discussion with the loan representative you work with. However, it can be helpful, as a substitute, to look at Personal Loans rates and fees, which are determined based on the creditworthiness of the applicant. The personal loan amounts range from $1,000 to $40,000, and the loan term options are either 3 or 5 years. There are no application fees, prepayment fees, or brokerage fees. However, an origination fee, which is included in the APR, ranges from 3% to 6% of the loan amount, depending on the grade of the loan. Late payment fees and check processing fees may apply in some cases.

Best Business Loan Providers

Eligibility criteria are easy to meet for most applicants

The eligibility criteria for LendingClub's small business loans are fairly transparent. It accommodates enterprises that have spent 12 months or more in business and can affirm an annual sales revenue of at least $50,000. Furthermore, the company must be based in the U.S, and the applicant should own at least 20% of the business. On the downside, while LendingClub tries to accommodate a variety of enterprises, their eligibility criteria might not cater to all. Start-ups, in particular, might face some difficulty aligning with these requirements. It's also important to note that application submission may end up causing a hard pull of the applicant's credit report. This could potentially impact their credit score with major credit reporting agencies.

Is $500,000 enough for your business?

Moreover, while the available loan range between $5,000 to $500,000 caters to a wide category of businesses, it might not suffice for enterprises seeking large-scale investment.

Pricing and interest rates disclosed later

In terms of costs, specific information about pricing, interest rates, or fees isn't explicitly mentioned on the LendingClub website and tends to vary based on individual credit profiles and the specific lending terms. However, one noteworthy aspect is that all credit products are subject to sufficient investor commitment and approval, adding an extra level of scrutiny and potential variability in the loan process.

Solid feedback from clients

LendingClub has received high praise from its customers on Trustpilot, with many lauding the speed and efficiency of the loan application and approval process. Notably, the company's rapid transfer of funds post-approval was a standout feature. Customers also appreciated the easy-to-navigate application process and the favorable terms with regard to interest rates, loan duration, and repayment schedules. Additionally, transparency in procedures and responsive customer service were key aspects that further enhanced the customer experience.

Best Business Loan Providers

Payoffs may not go 100% smoothly

Some customers express dissatisfaction particularly over the handling of loan payoffs. They express frustration due to the delay in credit reflecting in their accounts post-payment. Additionally, customers criticized customer service, citing a lack of satisfactory responses and difficulty in gaining access to supervisors for escalation requests.

Be aware of past legal action

One major item to note is a now-settled government action against LendingClub. According to the Better Business Bureau (BBB), LendingClub Corporation, despite its 17 years of experience and an "A+" rating, faced a significant government action in 2018 when the Federal Trade Commission stated that LendingClub promised customers "no hidden fees" but in fact deducted hidden fees from loan funds. The FTC also accused the company of continuing to charge customers who had canceled payments or paid off their loans entirely, among other allegations.

FTC settlement

In 2021, without admitting wrongdoing, LendingClub agreed to pay $18 million to settle these charges. As part of the settlement, the company is now barred from making any misrepresentations to loan applicants and must clearly and conspicuously disclose any upfront fees and the total amount of funds that borrowers will receive. Even though this settlement happened in 2018, it still represents a significant negative mark against the company in the context that none of the other reviewed companies seem to have had a similar controversy. Take this into consideration when attempting to obtain a business loan from LendingClub.

Final verdict is a qualified yes

LendingClub, leveraging its strategic alliance with Accion Opportunity Fund, provides a comprehensive financial solution serving businesses seeking additional funding. The program is designed to cater to the specific capital needs of an array of businesses, enhancing its appeal to a broad spectrum of enterprises. The business loan offerings stand out with notable benefits including the absence of prepayment penalties, predictable fixed monthly payments, a wide loan amount range, and the provision of dedicated client advisors. The advantages certainly outweigh the drawbacks. Therefore, for businesses that meet the eligibility criteria, LendingClub's business loans emerge as a viable and recommended option.

Where Can You Get the Best Business Loans?

Whether you're kicking off a new enterprise, scaling up your current operation, or launching a digital storefront, there's a good chance you'll find yourself in need of a business loan. Traditionally, small business owners would turn to their local banks for financing, where personal relationships and reputations were significant factors in securing a loan. Back then, options were limited, making the hunt for low-interest rates a real challenge.

Today, the landscape has shifted favorably for business owners. A wealth of online lenders are available, offering competitive terms and rates, all vying for your business. The trick is to find a reputable business lender that meets your particular needs and objectives.

The Best Business Loan Providers Compare Business Loan Providers Compare Business Loan Provider Reviews What are the best Business Loan Providers Best Business Loan Provider Reviews

Business Loan Provider FAQ

Business loans are available for just about any need: equipment financing, merchant cash advances, working capital, and much more. While you'll have to provide details about your business to apply and qualify for a business loan, once you've received the funds you can usually use them for whatever your company needs.
There are several types of lenders when it comes to business loans. You could get funding through a traditional bank or credit union, either locally or online. There are also peer-to-peer lending platforms that allow smaller financial institutions and even private investors to fund business loans.
You'll definitely pay interest on your business loan. Rates typically range from 1.5% to as high as 36% APR. You may also have origination fees of up to 6% of the loan amount, depending on the lending partner you select.
That always depends on the lender. Some providers of business loans require you to have a certain length of time in business or a minimum amount of gross annual sales to even apply. It's a good idea to determine those requirements before you begin the application, to save yourself some time and hassle.
Most of the time, you can complete the entire business loan process, from application to funds transfer, 100% online. That's a huge convenience for busy business owners like you, who might be applying outside of traditional bank hours.
Most lenders offer business loans ranging from $2,000 to $500,000. The amount you're approved for will depend on the lender you select and your business situation: naturally, the longer you've been in business and the more profitable you've been, the more likely it is that you'll be approved for a large loan.
You should have the proceeds of your business loan in your account within a week. However, if you need the money sooner, look for a lender that offers next-business-day funding. And, keep in mind that those timeframes are based on when you accept the loan offer you get, not just when you finish the application. Your business loan may require extra verification steps, like documentation of income and expenses, before you receive a funding offer.
Any time you take out a loan, you run the risk of defaulting. Be sure to only borrow what you need and maybe a little extra, and have a clear plan for making on-time loan payments. Many providers of business loans offer education and counseling at no extra charge, if you could use help in determining how much to borrow and how to use the loan wisely to maintain and grow your company.
Compare the Best Reviews

Continued from above...

Online business loans have gained immense popularity in recent years, transforming the landscape of financial transactions for entrepreneurs and small business owners alike. The appeal of these loans extends beyond mere convenience; it encompasses a variety of factors that business owners are increasingly taking advantage of.

One important aspect that contributes to the popularity of online business loans is the accessibility they provide. Unlike traditional lending institutions, online lenders offer a streamlined application process that can be completed from the comfort of your home or office.. This accessibility is a game-changer for busy entrepreneurs who may find it challenging to carve out time for lengthy in-person meetings with traditional lenders. The online platform enables borrowers to initiate the loan application at their convenience, eliminating the need for physical presence and extensive paperwork.

The speed at which online business loans are processed is also a significant driving force behind their increased popularity. Traditional banks often involve prolonged approval procedures, requiring extensive documentation and meticulous scrutiny. In contrast, online lenders leverage technology to expedite the approval process. With algorithms and automated systems, these lenders can often assess applications quickly, providing borrowers with prompt decisions. This quick turnaround is particularly crucial for businesses facing urgent financial needs or time-sensitive opportunities.

Another often overlooked reason why online business loans have become so popular is the flexibility the offer. Traditional lenders often adhere to rigid criteria, which makes challenging for businesses with less-than-perfect credit histories to secure funding. Online lenders, on the other hand, often consider a broader range of factors in their assessment, including the business's online presence, cash flow, and overall financial health. This flexibility opens up opportunities for a more diverse array of businesses and financial conditions.

So how do you determine which business lender is right for you? There are several key considerations you should weigh in your evaluation:

  • Loan amount and interest rate: What's the maximum amount you can borrow, and what are the interest rates like for loans of that size?
  • Application process: Is it possible to tackle the loan application online? How streamlined and user-friendly is the application process?
  • Business history requirements: Is there room for a brand-new business to secure a loan, or do you need a certain amount of operating history? What other requirements or collateral might be necessary?
  • Lender reputation: Does the lender have a solid track record of ethical business practices, as evidenced by their BBB rating or other industry standards?

These factors are especially important as lenders adapt and evolve their services. For a rundown of the top business loan providers, Top Consumer Reviews has curated a list of the best options out there. This resource will help you secure the most suitable loan for your business at a manageable rate.

Compare Business Loan Providers

Select any 2 Business Loan Providers to compare them head to head

best-business-loans
  • National Funding
  • National Business Capital
  • CAN Capital
  • Balboa Capital
  • Funding Circle
  • LendingTree
  • LendingClub
  • Fundera
  • Upstart
  • Atlas One Fund
National Funding vs National Business Capital National Funding vs CAN Capital National Funding vs Balboa Capital National Funding vs Funding Circle National Funding vs LendingTree National Funding vs LendingClub National Funding vs Fundera National Funding vs Upstart National Funding vs Atlas One Fund National Business Capital vs CAN Capital National Business Capital vs Balboa Capital National Business Capital vs Funding Circle National Business Capital vs LendingTree National Business Capital vs LendingClub National Business Capital vs Fundera National Business Capital vs Upstart National Business Capital vs Atlas One Fund CAN Capital vs Balboa Capital CAN Capital vs Funding Circle CAN Capital vs LendingTree CAN Capital vs LendingClub CAN Capital vs Fundera CAN Capital vs Upstart CAN Capital vs Atlas One Fund Balboa Capital vs Funding Circle Balboa Capital vs LendingTree Balboa Capital vs LendingClub Balboa Capital vs Fundera Balboa Capital vs Upstart Balboa Capital vs Atlas One Fund Funding Circle vs LendingTree Funding Circle vs LendingClub Funding Circle vs Fundera Funding Circle vs Upstart Funding Circle vs Atlas One Fund LendingTree vs LendingClub LendingTree vs Fundera LendingTree vs Upstart LendingTree vs Atlas One Fund LendingClub vs Fundera LendingClub vs Upstart LendingClub vs Atlas One Fund Fundera vs Upstart Fundera vs Atlas One Fund Upstart vs Atlas One Fund
Compare the Best Business Loan Providers
- VS -
Review the Best Business Loan Providers
See the Best Business Loan Provider
The Best Reviews of Business Loan Providers