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Business Credit Repair: How to Get Your Business Credit Back on Track

August 29, 2022 By Joe

Since you’re interested in repairing your business credit, I’ll assume that you had a good credit score at one point. Now, for one reason or another, it has taken a hit (If that’s not the case, and you haven’t established credit yet, you might want to start here).

First of all, if your business credit is not so great, don’t beat yourself up — it happens more than you would think.

Don’t believe me? According to US Courts, in 2021, a total of 14,347 businesses filed bankruptcy in 2021. If you think this might have been a COVID-related spike, think again — the same source cites 23,157 business bankruptcy filings in 2017, a couple of years before the pandemic began.

But, I don’t want you to focus too long on anything negative. Instead, let’s be solution-oriented and explore how business credit repair works.

Bear in mind that business credit is not the same as personal credit and some of the laws protecting consumers don’t apply, which isn’t necessarily a bad thing. In fact, business credit is much easier and faster to restore than personal credit.

This is what’s in store:

What is Business Credit Repair?
- The Golden Rule of Good Credit
8 Steps to Repair Your Business Credit
Final Thoughts

Now, here’s everything you need to know to restore your business credit.

What is Business Credit Repair?

Business credit repair or restoration typically refers to a third-party service that attempts to get negative information, like missed or late payments and defaulted accounts, removed from business credit reports in exchange for a payment.

A business might have a net 30 account on their report that shows as a late or slow pay that they want to clear up. Or, maybe they need to remove an old address from the credit bureau’s record. Business credit repair organizations might offer a service to help for a monthly or one-time fee in addition to any settlement offers they submit to creditors.

Luckily, in most cases, these services are not needed. You can easily restore business credit on your own, which is the primary focus of this guide.

The Golden Rule of Good Credit

Whether you’re talking about business or personal finance, here’s the golden rule of good credit: Make your payments to lenders on-time, as agreed.

While this may seem too obvious, it’s crucial. If you make your payments to lenders as agreed, you are very likely to maintain a high credit score.

So, when life gets in the way, and you can’t make business loan and credit card payments like you expected, stay in communication with your lenders. As soon as you think you might miss a payment, pick up the phone and reach out to ask about your options.

If you’re reading this early, at the first sign that your credit is about to slip — you never know — the above advice might be enough to keep you afloat while you figure out your finances.

If you’re already sitting on a low business credit score, it’s time to take action.

8 Steps to Repair Your Business Credit

Here’s the process, step-by-step, to restore your business credit.

1. Review Your Business Credit Reports

The first thing you need to do when restoring your business credit is get an up-to-date copy of each of your credit reports from the business credit bureaus.

There are three main business credit bureaus that most lenders will use to determine whether or not your company is worthy of financing.

Get a copy of your report from each bureau:

Dun & Bradstreet: Access your PAYDEX report
Experian Business: Get your Experian business credit report
Equifax Business: Obtain your Equifax business credit report

Download or print copies of each report so you can thoroughly review for accuracy.

You may be able to obtain copies of your business credit report at no cost if you have recently been denied financing. Within 90 days of your denial, mail a request to the creditor and ask that they send a copy of your business credit report to you.

Set up a free account with Nav to access and monitor your Experian and Dun & Bradstreet business credit summaries.

Note: In addition to these three bureaus, I have heard of a couple of outliers here and there. But, I don’t recommend you pay them any attention (unless you are getting denials after cleaning up the main 3). Every business credit lender I’ve ever worked with has used one of the above to determine a company’s creditworthiness.

2. Note Every Item You Want Removed From Each Report

The more organized you are at this stage, the better. Examine every potentially negative item on your report and read through your company details for inaccuracies.

Incorrect and negative information on your business credit report not only decreases your chances of obtaining financing, but adds additional hurdles. For example, you might pay higher insurance premiums, be charged higher interest rates on the funds you do receive, and find it difficult to rent equipment or office/retail space because of a mistake on one of your reports.

Look for any slow or late payments on your accounts that might affect your score. In addition, look for old business addresses or outdated contact information that you would like removed.

For each report, list each item that you would like reviewed for removal. Include the following:

The account number
The date of the disputed information
Explanation of the inaccuracy
Company that provided the disputed information
Type of disputed information (contact, missed/late payment, etc.)

Once you have completed your list, you’re ready to move forward.

3. Dispute Entries in Your Dun & Bradstreet Report

For Dun & Bradstreet, the simplest option is to dispute incorrect items online via your account dashboard. You can pay for an upgraded account, but all you need is the free version (there aren’t many scenarios where I recommend paying for a premium account).

Simply login to your account > navigate to D-U-N-S Manager > scroll down to Trade Payments in the left sidebar.

Your trade accounts will appear in the dashboard with an option to select from the dropdown under Initiate Investigation.

How long does it take to fix business credit?

Follow the prompts to continue at the bottom right of the screen until you come to the summary page.

Accept the terms of service, then click Submit.

You will receive a reply relatively quickly, letting you know whether the investigation has resulted in a removal of the items you requested or not.

4. Dispute Entries in Your Experian Business Report

The best way to execute Experian business disputes is to print your full, updated report, circle the incorrect information, and write-in the reason you are disputing each item.

Scan and email the edited report to businessdisputes@experian.com, along with any additional documentation you have to support your request for information removal.

Alternatively, you can open an account with Experian business, then call in to initiate a dispute: (888) 397-3742. When you place the call, have your list handy so that you can accurately indicate which items you want the bureau to investigate.

5. Dispute Entries in Your Equifax Business Report

Equifax disputes can be handled online or via mail, email, or phone. Recently, I’ve seen email disputes resolved within about one week.

Equifax Inc.

P.O. Box 740249

Atlanta, GA 30374-0249

commercialdisclosures@equifax.com

(800) 727-8495

Download business credit dispute template PDF

6. Reach Out Directly to Creditors

After you’ve waited about a month after initiating your dispute(s), or you’ve heard back from the bureaus, are there any red flags still on your reports? If so, it might be worth reaching out to the creditor directly.

In some cases, you may be able to negotiate a deal to get negative information removed from your account. For example, if an account shows unpaid, you might be able to get the creditor to report the account paid in full with a lump sum payment.

If you do negotiate a deal like this, be sure that you get the agreement in writing, including the date by which the creditor will report to the credit bureaus.

7. Establish New, Healthy Accounts

A crucial ingredient for a strong business credit score is to have healthy accounts. If your credit profile is sparse, it might be a good idea to add a few accounts that report on-time payments to the business credit bureaus.

After your reports have been cleaned up, you might benefit from opening new accounts — depending on how established your business credit profile is.

To get started, see our list of 41+ Companies That Help Build Business Credit.

Be sure to keep any revolving accounts below 30% utilization for an optimal impact to your credit score. For example, if you have a revolving business credit card with a $30K limit, never use more than $10K at a time. Better yet, pay the card off in full each month.

Ask for credit limit increases on revolving accounts. From time to time, some creditors will automatically increase your spending limit. Other creditors require that you make the requests for increases yourself. If you can request an increase from your account dashboard, go ahead — if not, pick up the phone and call customer service and ask if you qualify for a higher spending limit.

8. Continue to Monitor Your Business Credit

Like personal credit, it’s important to monitor your business credit and keep an eye out for inaccuracies. If you haven’t already, sign up for a Nav account.

Nav can help you monitor your business credit… and more.

Get actionable insights into credit and cash flow
See relevant financing recommendations
Research customer and partner credit profiles
Boost your chances of obtaining business credit

It doesn’t hurt to maintain accounts with all three bureaus, but you can accomplish most of what you need from a single dashboard with Nav alone.

Final Thoughts

Credit repair is important when you want to increase your business financing limits. Start by reviewing your reports from the three major business credit bureaus. Then, dispute any inaccuracies you find on your reports. If you need to, reach out to creditors directly to clean up any accounts in poor standing. After that, maintain healthy accounts, and monitor your business credit to watch for new inaccuracies or mistakes.

To learn how to obtain $100K in business credit in 30 days, join Business Credit Workshop today.

14 Best Credit Monitoring Services for Scores, Reports, & ID Theft Protection

August 22, 2022 By Joe

Credit monitoring is a crucial part of building and maintaining your credit. Through monitoring, you can view your credit score, watch for signs of fraud, and receive suggestions on how to increase your odds of getting financing with higher limits at lower rates.

In a study conducted by Consumer Reports, 10.31% of those surveyed said that they found it “difficult” or “very difficult” to access their credit reports. If you’re one of these people, this list might have the solution you’re after.

Gone are the days that consumers need to request their reports directly from credit bureaus. Fortunately, monitoring can now be done through a plethora of third-party services that provide daily alerts, funding opportunities, tips for boosting credit scores, and more.

Today, we’ll explore the costs, features, and highlights of the best credit monitoring services of 2022. Here’s everything that’s covered:

What to Look for in a Credit Monitoring Service
- Online Credit Monitoring Service Features
What are the Best Credit Monitoring Services?
Conclusion

Now, let’s get to it!

This is What to Look for in a Credit Monitoring Service

What you should look for in a credit monitoring service, at its core, depends on your personal needs and wants.

First, why are you interested in credit monitoring? Are you trying to maintain or boost your credit score so that you can apply for a loan? Do you want to make sure someone isn’t using your identity or inaccuracies haven’t been reported by your trade line issuers? Or, do you want recommendations for lenders that are likely to finance you?

Next, what’s your budget? There are several monitoring services that you can access for free. Keep in mind that the providers have to make money somehow and will likely try to sell you something. In most cases, that “something” is a push to apply for a loan or line of credit that you may not necessarily need. Some of the best credit monitoring services, on the other hand, are a bit spendy.

Online Credit Monitoring Service Features

You can expect some or all of the following features from a credit monitoring service:

Free credit score (VantageScore or FICO Score)
Transunion credit report
Equifax credit report
Experian credit report
Identity theft monitoring
Recommended financing offers

So, what is the best credit monitoring service? The answer, frankly, depends on what you need and how much it’s worth to you. Here, read a breakdown of the top credit monitoring services with costs and features.

What are the Best Credit Monitoring Services?

If you’re ready to find out what to expect with credit monitoring and decide which service is best for you, take a look. The table below shows the highlights from the best credit monitoring services. Below, you’ll find a complete, truthfully unbiased summary of each offer.

1. ExtraCredit

Credit.com offers a full-featured credit monitoring service, ExtraCredit. Build, guard, track, and restore (available in select locations) your credit, plus uncover your chances to earn up to $2.5K in rewards.

ExtraCredit has a few standout features. First, you can access 28 different FICO scores — home lenders may not see the same score as credit card lenders. But, with this service, you’ll know what each type of lender will see.

Next, you can use this service to legitimately build credit with the bills you’re already paying every month. Get credit for paying your for your monthly phone, gas, and water bills, and even your rent on-time.

Cost: $24.99 per month

2. Credit Karma

Certainly the most popular consumer credit monitoring service is Credit Karma. The platform is absolutely free and user-friendly. But, is Credit Karma worth using?

With Credit Karma, you can access daily, real-time information from your TransUnion and Equifax credit reports as well as estimates of your two credit scores. For free?… sure! You will be prompted to apply for quite a lot of credit cards and loans from their partners. So, proceed with caution, and don’t apply for every offer.

Note: Your Experian score isn’t accessible through Credit Karma, which is why some people use Experian’s free monitoring and Credit Karma to see the whole picture.

In addition to credit monitoring and financing recommendations, Credit Karma offers financial tools. For example, a user favorite is the Credit Score Simulator, which shows what might happen to your credit score should you take certain actions like get a new loan or increase the limit on an existing credit line.

Cost: Free

3. Identity IQ

Another widely-accepted choice for consumer credit monitoring is Identity IQ. This service costs from $9.99 to $29.99 per month, depending on the subscription level. You can use Identity IQ’s services to access up to 12 credit reports per year from all three credit bureaus (Transunion, Equifax, and Experian) with select plans.

According to Identity IQ’s terms & conditions, VantageScore or FICO may be delivered, based on the proprietary model used by the third-party data provider.

With this service, you can obtain identity theft insurance, dark web monitoring, family protection, real-time monitoring for suspicious activity, and identity restoration in the case of fraud or inaccurate reporting. As part of an Identity IQ plan, you can also access Bitdefender VPN for secure browsing on multiple devices.

Cost: $9.99 to $23.99 per month

4. MyFico

MyFICO provides another trusted credit monitoring service that you might want to leverage. Here, you have a couple of options.

First, MyFICO Free Score Estimator allows you to answer questions about your circumstances to make an educated guess as to what your FICO score is likely to be.

Next, MyFICO subscription plans range from $19.95 to $39.95 per month. Here’s where you can access helpful features like three-bureau monitoring that updates monthly or quarterly, FICO scores, and identity monitoring and restoration. You can also access one-time reports for $19.95 (one-bureau) to $59.95 (three-bureau).

Note: If you’re simply interested in a single credit report from each bureau for the year, I recommend you grab it for free from annualcreditreport.com.

Finally, anyone interested in learning how to obtain new financing and leverage their existing lines of credit to improve their credit, MyFICO Forums can be invaluable. Members frequently ask and answer questions and share credit building anecdotes to help one another.

Cost: $19.95 to $39.95 per month

5. LifeLock

Officially, LifeLock is an identity theft protection service. You can leverage the platform to easily lock your credit file, safeguard your home title, and “take back your online privacy.” Yet, for $9.99 to $23.99 per month, you can also access one-bureau or three-bureau credit monitoring.

One-bureau credit monitoring features in LifeLock plans are isolated to Equifax monitoring. And, you will need to successfully identify yourself through the bureau using your social security number to access credit features.

Cost: $9.99 to $23.99 per month

6. CreditWise

CreditWise is a credit monitoring service from Capital One, though you don’t have to have a credit line open with the bank to access it — it’s free to everyone. Get instant access to your Transunion credit report and score when you sign up and verify your identity.

Use CreditWise’s Score Simulator to make informed choices and boost your credit score, see historical score changes, and receive alerts to monitor your credit. As time goes on, CreditWise will also send you personalized product suggestions (credit cards, loans, etc.) and insights with topics that focus on your credit journey.

Cost: Free

7. Experian

You can access one of the most popular free credit monitoring services directly through Experian (one of the top three consumer credit bureaus).

IdentityWorks is a paid identity theft protection program from Experian. You can try it free for one month, then pay monthly thereafter. Essentially, it is an ID theft insurance offer for $500K to $1M that costs $9.99 per month and $19.99 per month respectively. It also offers features like dark web monitoring, lost wallet assistance, and access to a US-based fraud resolution specialist.

Experian Boost is a popular promotional offer, which claims to increase users’ credit scores immediately upon joining. Note that this only applies to the Experian FICO Score, and does not affect Transunion or Equifax credit scores.

For a one-time payment of $39.99, Experian can provide you with a 3-bureau credit report with FICO scores.

Cost: Free to $19.99 per month

8. IdentityForce

Branded as an identity theft protection service, IdentityForce is a pretty powerful credit monitoring service for individuals and businesses. For personal credit monitoring, sign up for the UltraSecure+Credit Monitoring plan.

In addition to the base UltraSecure identity theft features, you will get three-bureau credit monitoring, reports, scores, and access to the score tracker and simulator. The credit score tracker is a month-to-month graph that shows visual changes to your credit scores. And, the simulator can help you explore how various financial decisions can impact your score, hypothetically.

Cost: $23.99 per month

9. Identity Guard

Another identity theft protection service, Identity Guard also offers credit monitoring and bank account protection with insurance up to $1M. This offer also includes a family plan for a few extra bucks per month.

While the service monitors your reports from all three bureaus, they provide your VantageScore from just one bureau, Transunion.

Identity Guard has an excellent TrustPilot rating. The most common complaint is that users are sometimes charged when they thought they had cancelled their subscription. So be sure to read the fine print and cancel immediately if you don’t want to continue with your plan.

Cost: $8.99 to $29.99 per month

10. Credit Squad

Credit Squad offers yet another credit monitoring service with ID theft protection for individuals and families. The competitive edge that they tout is that they compile a seven-year history on users for a bigger picture view of credit — this is why they made the list.

While the price is comparable to other similar offers, I have to caution against this service… for now. The thing is, I couldn’t find any glaring negative reviews or anything to send up a major red flag. Still, the company is not as transparent as they could be.

Nothing on Credit Squad’s website states which score (FICO or VantageScore) is reported to users. And, when you call the phone number listed on the website, you’re taken to a recording that quickly spouts a customer service email address.

I reached out and did not find the answers to my questions.

Cost: $14.99 to $29.99 per month

11. PrivacyGuard

With Privacy Guard, you have three fundamental options:

Identity theft monitoring
Credit monitoring
Identity theft and credit monitoring (Total protection)

This service continually monitors your credit with all three bureaus and keeps track of your scores. With ID theft monitoring, like most services, they also monitor the dark web and provide you with updates about breaches.

You’ll get email and text alerts, access to your own, dedicated fraud prevention specialist, and a suite of financial calculators to help you keep your score on-track.

Cost: $19.99 to $24.99 per month

12. Credit Sesame

Similar to Credit Karma, Credit Sesame is a free monitoring service, designed to help users take control over their finances while offering financial service recommendations from their partners.

You can see your credit score in real-time (refreshed daily). They offer a “credit report card,” which is essentially a credit report summary, and help you find more offers in alignment with your credit history.

The standout feature is their suite of financial tools. My Debt and My Assets help you take control over debt repayment and asset monitoring to give you a bird’s-eye view of your finances.

Cost: Free

13. Complete ID

Complete ID is an exclusive credit monitoring service available to select Costco members. Executive members can sign up for $8.99 and up, while Business & Gold Star members can join for $13.99 per month. Additional family members and entire families can be added to a Complete ID account for a few extra bucks per month (see pricing).

Complete ID also comes with $1M in identity theft insurance. The platform is powered by Experian.

While most of the features are standard with this type of service, the stand-out offer is the savings, which is in alignment with most other Costco member benefits. So, if you’re already a Costco member or you want to become one, this is definitely a good option.

Cost: $8.99 to $13.99 per month

14. ID Watchdog

Our final contender here is ID Watchdog, an ID theft and credit monitoring service from Equifax. This service is commonly offered as an employee perk. So, check with your employer before you sign up, because they may already have this covered for you.

There are two tiers: Select and Premium. The Select plan offers one-bureau (Equifax) monitoring and a monthly score update. And, the Premium plan offers daily score updates (Equifax-only) with three-bureau monitoring.

Both offers can be upgraded to include families and come with $1M identity theft insurance. The Premium offer includes an additional $1M 401K and stolen funds reimbursement.

Cost: $14.95 to $21.95 per month

Bottom Line

Anyone interested in accessing loans or lines of credit — for any purpose — will benefit from keeping an eye on their credit. You can do this the old fashioned way by requesting an annual report from each bureau, or you can sign up for monitoring through one of the services above.

Now, we don’t think you should stop there. In fact, we teach how you can transform your life with business credit (for real).

Are you ready to learn how to obtain $100K in business credit in 30 days? We break it down for our members in a way that’s super easy to understand — join Business Credit Workshop today to learn a simple, 7-step process.

Lending Club Business Loans: Everything You Need to Know

November 3, 2021 By Joe

Key Takeaways

Lending Club offers personal and business loans for various needs.
The company was the first fintech to acquire a U.S. bank in 2020.
They have an A+ BBB rating and a 4.6 TrustScore™ on Trustpilot.
Their high-yield savings accounts provide up to 5.15% APY; business accounts earn 1.5% APY with 1% cash back.
Lending Clubs business loans are offered in partnership with Accion Opportunity Fund.
The business loan application process is fast, with easy approval and direct deposits.

Since 2007, Lending Club has offered fair credit, unsecured, personal peer-to-peer (p2p) loans for debt consolidation and other major purchases. And they were the first fintech company to acquire a US regulated bank in 2020. Recently, they acquired a credit card debt payoff app, which aligns with the mission they’re on to become a financial health company, not just a lender.

Today, Lending Club offers personal and business borrowing, banking, investing, and financial resources. They’ve proven their ability to roll with the punches and their powerful offer is worth exploring. So, for every business owner wondering if you should work with the likes of Lending Club, here’s my honest opinion and complete overview.

This is what’s in store:

What is Lending Club?
- What Bank Does Lending Club Use?
- Company Overview
Lending Club Business Loans
How to Get a Small Business Loan with Lending Club
Frequently Asked Questions
Conclusion: Can Lending Club be Trusted?

Now, let’s go!

What is Lending Club?

LendingClub is a digital bank that offers a mix of personal and business loans, auto refinancing, and banking products. Known as a “marketplace bank,” it connects borrowers with investors to provide lending services while keeping costs low by operating fully online. LendingClub has issued more than $90 billion in loans to over 4.8 million members since it started in 2007.

LendingClub’s loan products include:

Loans up to $40K to consolidate credit card debt or pay off personal loan balances.
Personal loans of up to $40K for major purchases, home improvements, or life events.
Loans up to $65K through the LendingClub Patient Solutions program for treatments like dental or fertility care.
Options to refinance car loans with flexible terms and competitive rates.
Small business loans up to $250K.

On top of loans, LendingClub offers banking products like Rewards Checking and High-Yield Savings Accounts with competitive interest rates and benefits like cash-back rewards. LendingClub’s high-yield CDs provide another savings option if you want to grow your savings steadily.

And, LendingClub positions itself as a bank that “only wins when customers succeed.”

You might also like: 11 Alternate Ways for Entrepreneurs to Raise Capital

What Bank Does Lending Club Use?

In February 2020, the LendingClub Inc. acquired and merged with Radius Bank, then re-launched under a self-branded title. This merger cut out the middle man, which was meant to lead to lower rates promised to bring high yields on new savings accounts.

At the time, I had doubts about how much difference this would actually make, since Radius Bank and Lending Club’s previous banking servicer (Webank) offered similar savings account yields at 0.25% APY. Happily, I was proven wrong.

Lending Club now offers 4.8% APY to 5.15% APY on the full balance of LevelUp (personal) savings accounts. And, their Tailored Checking (business) accounts yield 1.5% APY up to $100K.

Moreover, spending on Rewards Checking (personal) and Tailored Checking (business) accounts earn 1% unlimited cash back on spending.

Company Overview

Lending Club, aka Lending Club Corporation, is a San Francisco-based company that was founded in 2007 by Renaud Laplanch, who is also the CEO & founder of Upgrade. Prior to launching two successful financial corporations ten years apart, he was a product manager at Oracle.

Oracle actually acquired one of Laplanche’s earlier products, MatchPoint, in 2005. So, he likely temporarily took over product management of that segment of Oracle’s business after the acquisition and merger.

Before his entrepreneurial ventures, Laplanche served as an associate at New York’s Cleary Gottlieb, a leading international law firm.

In May 2016, Laplanche resigned following what was labeled “improper decision-making.” LendingClub’s board stated that the resignation took place after Laplanche went against investors’ wishes in a multi-million dollar deal—This was commonly referred to as “the Lending Club scandal,” and made it sound like some sort of pyramid scheme gone wrong, which wasn’t the case.

At that time, the COO/CMO, Scott Sanborn, took over as Lending Club’s CEO.

Sanborn has a strong business and marketing background, having held high-level executive roles at Home Shopping Network (HSN), RedEnvelope, and eHealthInsurance prior to 2010.

Today, Lending Club has an A+ Better Business Bureau (BBB) rating with 4.4 out of 5 average stars given and accreditation dating back to 2008. All of their 1,199 complaints in the last three years have been closed successfully.

lending club small business loans reviews

On Trustpilot, Lending Club’s TrustScore™ is 4.6 out of 5 (which is great for a financial offer). Customers praise its fast, easy loan process and “lower” interest rates. Positive reviews highlight efficient service and helpful customer support. Still, a small percentage report issues, mainly related to communication for investors and loan policies during the pandemic.

Overall, LendingClub is highly rated for quick funding and debt relief, though some users had isolated concerns.

However, in 2018, Lending Club paid $18 million to settle FTC charges that alleged that the company included hidden fees in their loan processes.

After this, Lending Club agreed to “clearly and conspicuously disclose the amount of any prepaid, up-front, or origination fee and the total amount of funds that borrowers will receive.”

Since this incident, a lot of people still ask, ‘why is Lending Club shutting down?’ The answer is, it’s not. That was a rumor from the beginning.

In all, it’s probably fair to say LendingClub has a generally positive standing but has faced serious issues with transparency in the past. But, they seem to have been addressed.

You might also like: Is United Capital Source Legit? A Complete, Uncut Breakdown

Lending Club Business Loans

does lending club offer small business loans

Lending Club small business loans and lending club SBA loans cater specifically to businesses. Their business financing offers higher amounts to qualified business owners than to consumers. So, let’s find out what you can expect and what you might qualify for.

Note: Lending Club’s business loans are offered in partnership with Accion Opportunity Fund (a non-profit lender, that is also a driving force behind Skip’s small business grant offer).

1. Loan Amounts from $5K to $250K

With Lending Club, your business can borrow between $5K and $250K, which can give you the flexibility to secure the right amount based on your business needs. This range covers a variety of financial goals, whether you’re expanding, covering expenses, or consolidating debt.

You might also like: Ramp Card Review: Is This the Corporate Card for You?

2. Competitive Business Loan Rates

Lending Club’s business loan rates, through Accion Opportunity fund, actually start on, at 8.49%. According to the most recent data from the Federal Reserve as of November 2024, the typical interest rate for small-business bank loans ranged between 6.42% and 12.41%.

Note: Lending Club’s SBA loan rates (not what we’re talking about here) are based on the current prime rate.

You might also like: No-Doc Business Loans: Get Funds Without Proof of Income

3. Fixed Monthly Payments & No Prepayment Penalties

Fixed monthly payments provide stability and make it easier to budget for loan repayments. This predictability can help keep your business cash flow on track without unexpected changes to payment amounts.

If you’re able to pay off your loan early, there are no penalties—This allows you to save on interest costs if your business finances improve sooner than expected, giving you more control over total loan expenses.

4. Flexible Terms, Easy Application, & Quick Funding

how long does lending club take to approve

With term options ranging from 1 to 5 years, you can choose the repayment period that best suits your business’s financial strategy. Shorter terms mean less interest overall, while longer terms can make monthly payments more manageable.

You can apply online in minutes, making the process quick and convenient. Once approved, Accion Opportunity Fund deposits the funds directly into your bank account, allowing you to access financing without delay.

How to Get a Small Business Loan with Lending Club

lending club business loans requirements

If you’re wondering how to get a business loan with Lending Club, the answer is uncomplicated.

To qualify, your business needs to meet basic eligibility criteria:

12+ months in business
$50K+ in annual sales
US-based company
20% or more ownership
Consumer credit score of 600+

A lot of business loans that we review require at least 50% ownership for an owner-applicant to qualify. So, Lending Club stands out in this area.

What credit score is needed for LendingClub?

While these loans appear to be issued based on the owner-applicant’s credit score, Accion Opportunity Fund is known to report business payment activity to Experian, Equifax, and Dun & Bradstreet—These are the leading business credit bureaus, so on-time payments can help you build your business credit score.

You might also like: This is How to Leverage Business Credit to Transform Your Life

Frequently Asked Questions

Is it hard to get a loan through LendingClub?

LendingClub has flexible lending criteria, but you’ll generally need a good credit score, steady income, and a manageable debt-to-income ratio to qualify. Their process is straightforward, though approval requirements may vary.

Is LendingClub an actual loan company?

Yes, LendingClub is a legitimate online lending company that connects borrowers with investors for personal, business, and medical loans. They’ve been in operation since 2007.

Is LendingClub bank in trouble?

No, LendingClub is not currently facing any known legal or financial issues. The company has faced some challenges in the past, but it maintains high ratings on platforms like BBB and Trustpilot today.

Is LendingClub a safe place to put money?

Yes, LendingClub is generally considered safe for both borrowers and investors, with strong security protocols. However, as with any investment, there are risks, especially in loan investing.

Conclusion: Can Lending Club be Trusted?

As a borrower, LendingClub’s offer is legit, yes. The company is established and has grown to become a trustworthy funding source for personal loans, business loans, auto refinancing, and patient solutions.

Through their partnership with Accion Opportunity Fund, you could qualify to get up to $250K in business credit if you and your business meet the qualifications. If you apply and don’t qualify for a business loan, Accion Opportunity will attempt to refer you to one of their partners to provide other resources.

Are you ready to learn how to get up to $100K in business credit? Join Business Credit Workshop today!

Read This Before You Hire a Business Credit Coach [Quick Guide]

September 16, 2021 By Joe

You’ve probably landed here because you’re thinking about hiring a business credit coach. In most small business owner/startup scenarios, we recommend you do because business credit can help you obtain the working capital you need to improve, grow, and scale your operations. But, before you take the leap, you need to know a few things including alternative options and what to expect.

Here, you’ll learn everything you need to consider before you hire a business credit coach. This is what’s covered:

What is Business Credit?
What are Your Alternatives for Business Capital?
What is a Business Credit Coach and How Can They Help?
Frequently Asked Questions
Are You Ready to Pull the Trigger?

What is Business Credit?

Business credit refers to a company’s ability to access credit cards, lines of credit, and loans. It is based on the business’ creditworthiness, which is typically determined by a business credit score. Business credit bureaus and business divisions within consumer credit bureaus measure business credit separately from personal credit.

What are Your Alternatives for Business Capital?

Most small US businesses are launched and operated using personal capital, which includes personal cash, savings, and credit. Business credit frees up more opportunities for growth. But, it’s not your only option. You should know what alternatives are available before you invest in something you might not necessarily need.

So, here’s a quick list of your options and summaries of what each entails.

Personal debt financing – A high FICO score through consumer credit bureaus can give business owners access to personal loans, lines of credit, and credit cards that can be used to fund business ventures. Funding amounts are typically lower than with business credit.
Working capital loans & merchant cash advances – Short-term loans can be accessed through certain lenders based on business income or accounts receivable for urgent funding needs. Interest rates and fees are usually especially high.
Venture capital (VC) & angel investing – Funding can be obtained through private investors and VC firms. In most cases, these investors take partial ownership over the business, or at least a share of future profits, in exchange for funding.

Business credit is the only funding option (aside from reinvesting profits) that helps owners maintain freedom and control over their business with reasonable costs and is not limited by personal credit.

What is a Business Credit Coach and How Can They Help?

Now, what do credit coaches do? A business credit coach will learn about your current financial situation and hear your struggles. They will help you set business credit goals and lay out a plan for you to achieve them. A good coach will then help you take the steps needed to get to the end goal and help you overcome any obstacles that you might encounter along the way.

From establishing your business properly to getting business credit-ready and obtaining large lines of credit, capable business credit coaches know the ins and outs of the business credit world. They can help you ensure that you file the right paperwork, stay in compliance with regulations, and tell you when and how you need to take action.

Frequently Asked Questions

Before we wrap up, let’s take a look at brief answers to some of the most common questions that I hear from my business credit coaching clients.

Can you repair business credit?
- Yes, as with consumer credit, business credit restoration can help you improve your credit score and increase your business’ creditworthiness.
Can you get business credit with an LLC?
- Yes, you can get business credit with an LLC or any other corporation. In some cases, you can get business credit with Sole Proprietorships, but we always recommend that our clients establish their company as a corporation.
Can I use my EIN to apply for credit?
- Yes, many business credit applications ask for an EIN. We also teach how to actually get business credit with just an EIN.
Is business credit linked to personal credit?
- Yes, most (not all) business credit lenders require a guarantor who will be responsible to repay the debt if a business fails to do so. The guarantor on a business line of credit, loan, or credit card is usually the owner… but not always.

Are You Ready to Pull the Trigger?

At Business Credit Workshop, we’re not like some of the other coaches. There are a few ways that we go above and beyond for our clients. For example, we have a large database of thousands of local community banks and credit unions that offer business credit. And, we have interviewed every one of them.

Next, we have a support system made up of Business Credit Workshop students and clients. In our network, those seeking business credit help each other out. Here, you can learn from real people who are actually seeing success.

Finally, we use a trusted 7-step process to get clients $500K+ in business credit without ever having to walk into a bank. If you’ve made it this far and you’re 100% certain that you’re ready to pull the trigger, complete your business credit coaching application today.