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LendingClub vs Fundia

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LENDINGCLUB

LendingClub is known as a peer-to-peer lending company. They match borrowers looking for loans between $5,000 to $300,000 with offers from several different lenders. LendingClub has one of the lowest rates available for business loans, starting at 6.16% and going up to 35.89%. LendingClub has an A rating with the Better Business Bureau and has helped facilitate more than $16 billion in loans.

LendingClub has several requirements for those wishing to take out a business loan:

  • At least $75,000 in annual sales
  • 2+ years in business
  • Own at least 20% of the business
  • No recent bankruptcies or tax liens
  • Fair or better personal credit

As with most lenders, the best LendingClub business loan rates are available to those with excellent credit and an established business history.

Applying for a loan is simple:

  • Enter the amount you want to borrow, the purpose of the loan (debt consolidation, equipment purchase, and so on), and your business' information (for example, address, years in operation, number of employees, and structure, such as LLC, sole proprietorship, and so on)
  • LendingClub will verify your business' identity and creditworthiness
  • After verification occurs, your loan and loan terms will be available for you to select from
  • Select your loan
  • LendingClub authenticates your bank account
  • You receive your funds

The size of your loan and your business history can have an effect on the turnaround time of your loan, but many customers receive their loans within a week or less. LendingClub's Client Advisors are also available Monday through Friday from 6am-5pm Pacific Time, to answer any questions you may have about the lending process. Your loan request will be listed on the LendingClub website for up to two weeks, or until lenders are willing to fully fund your request.

Taking out a business loan typically comes with fees beyond the interest paid on the loan itself. At LendingClub you should expect to pay an origination fee from 1% to 6% of the loan amount, depending on your loan and loan terms. For example, if your business loan is $100,000, your origination fee would be somewhere between $990 and $6,990.

If you need a business loan to grow your company, LendingClub offers highly competitive rates and an uncomplicated application process, backed by years of successful lending to numerous businesses around the country.

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FUNDIA

Based in Utah, Fundia Credit & Capital focuses on small business lending and is one of the few companies in our review who include startups in their group of potential borrowers. Focused entirely on small businesses, including entrepreneurs, their desire to help their borrowers succeed is evidenced by the 12 months of free counseling they provide in order to help their customers effectively manage their credit lines.

Borrowers can receive a loan of up to $200,000 with same-day approval. Unfortunately, there is nothing on Fundia's site that allows prospective borrowers to get even an estimated loan amount or an interest rate, so it is difficult to compare Fundia with other lenders in our review, with respect to affordability.

One significant difference in the Fundia process is the requirement to sign up for a credit score report through Credit Check Total (which costs $1). Applicants can either provide their Credit Check Total login information or upload a PDF of the score report. Once the applicant has entered their basic business information and total desired loan amount, along with the credit score report, he or she can be pre-approved for the Fundia process. Because Fundia doesn't require security in the form of collateral, such as real estate or equipment, they do expect at least one of the business partners (either the borrower or another partner in the business) to have a credit score of 680 or higher.

Despite a relatively short history - having been established in 2015 - Fundia is an accredited business with the Better Business Bureau, with not only an A rating but also eight positive customer reviews and no negative ones. While the lack of any detailed information regarding interest rates or fees makes it hard to determine Fundia's ranking on an apples-to-apples basis with other lenders, we're very impressed with their positive reviews with the BBB and their willingness to not only lend to startups but to partner with them to help them succeed. We give Fundia four stars, and would easily raise that score if more detailed information regarding rates and fees proved to be competitive with other lenders in the business loans market.

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Business Loans

To help you find the Best Business Loans, TopConsumerReviews.com provides you with an in-depth comparison of LendingClub and Fundia.

With all the difficulties in today's economy, many people are choosing to open their own business instead of working for a traditional employer. Whether you're just starting your business, expanding your already-established business, or even hanging out a shingle as an online company, it's likely that at some point you'll need a business loan to successfully meet your customer's needs and your business goals.

In the past, small business owners relied heavily on traditional brick-and-mortar banks in order to finance their business loans. Often that meant that borrowers had to rely on their own reputation and relationship with their local bank. Getting the lowest possible interest rate was also more challenging, since there were few lending options from which to choose.

Fortunately, business owners today can choose among many lenders to find the best terms and interest rates available. In addition to the old local options, small business borrowers now have much more and better choices through various lenders on the Internet that specialize in small business loans.

There are many factors that you should consider before selecting a lender for your business loan. Some of these include:

  • Loan size and rate. How much will you be allowed to borrow? What interest rates do they typically offer on loans of that size?
  • Loan application process. When applying for your business loan, can it be completed online? Is the lending process easy and straightforward?
  • Requirements for business history. Can a brand-new business take out a loan, or is there a minimum time that the business must have been in operation in order to qualify? What other verification and/or collateral is required to secure the loan?
  • BBB rating. Does the lender have an established history of good business practices?

TopConsumerReviews.com has reviewed and ranked the best Business Loan programs available today. We hope this information helps you find the best loan for your small business at an affordable rate!



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