business loan

Lending Club Business Loans: Everything You Need to Know

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!

Here’s How to [Actually] Get Business Credit With Just an EIN +More Options

By Joe

Lately, I’ve found quite a bit of online content that pertains to getting business credit with just your EIN, and I’ve seen some pretty good information. But, I haven’t found a thorough answer to the core question, which is, “How can you get business credit using your EIN and not your SSN?”

First of all, if you’re not up-to-date with the lingo, what you’re essentially looking for here is business credit without a “personal guarantee.” Luckily, there are lenders that do not require a personal guarantee for business financing, but most of the good options are not common nor easy to find. So, let’s explore everything you need to know.

Here’s what’s in store:

In Business Credit, What is a Personal Guarantee?
What if You Aren’t Eligible for an SSN?
What if You Have Bad Personal Credit?
How Can You Use Your EIN Instead of Your SSN to Get Business Credit and Loans?
Lenders That Offer Financing With No Personal Guarantee
Final Thoughts

In Business Credit, What is a Personal Guarantee?

When a business takes out an unsecured loan or line of credit, most lenders want assurance that the funds will be paid back. A personal guarantee is a promise that, should the business fail to repay, the individual will be responsible for the debt. This responsibility typically falls on a company executive or business owner.

With a business loan or line of credit for which you are the personal guarantor, the lender has a legal right to your individual assets if your business does not repay the debt as agreed. In order to legally collect the funds in this case, the lender needs your social security number (SSN).

Your SSN often serves a second purpose, which is to see if you have shown responsible credit behavior with your personal finances. Really, lenders just want to make sure you are responsible even when your business is obviously financially healthy.

You might also like: Business Car Leasing 101: How to Lease a Vehicle With Your EIN

💡 Does Your EIN Have a Credit Score?
Your business does have it’s own public credit score, separate from your private personal FICO scores. To learn more about the oldest and most-used business credit bureau, see Everything You Need to Know About a DUNS Number & Why Should You Care.

What if You Aren’t Eligible for an SSN?

If the reason you want a business credit card is that you don’t have a social security number — maybe you’re a nonresident of the United States doing business here — you can take another route to bypass the SSN section of a credit card or loan application. In this case, you need to file for an Individual Taxpayer Identification Number (ITIN) through the IRS.

Several credit lenders allow you to apply for funding using an ITIN instead of an SSN. I recently did a write-up on one of them and you can find more about it (and competitors) here: Chase Ink Business Preferred Credit Card: A Deep Dive.

To apply for an ITIN, use IRS form W-7. Consult with a CPA licensed in the state where you do business to find out more as it applies to your situation.

What if You Have Bad Personal Credit?

Another reason you might want to apply for business credit using your EIN and not your SSN is that you have a low FICO score. If you’re in this boat, there are steps you can take to remedy the predicament. These steps will vary based on your situation.

In all cases, the first step will be to learn about the common errors often reported by consumer credit bureaus and leverage them to your advantage. For example, you might learn how to best deal with vehicle repossessions and defaulted loans or what can be disputed in a credit file and how to do so.

How Can You Use Your EIN Instead of Your SSN to Get Business Credit and Loans?

If you want to get a line of credit for your EIN and withhold your SSN, as you probably guessed, you need to find a lender that does not require a personal guarantee. Then, you will need to meet the credit and income requirements of that lender. Finally, you’ll need to apply.

Lenders That Offer Financing With No Personal Guarantee

As I’ve already said, lenders that do not require a personal guarantee are uncommon. But, they’re not impossible to find. Here’s a list of a some lenders who may not require an SSN or an ITIN to apply for a line of credit or a loan.

Business Credit Cards

These business credit cards are fairly easy for companies of all sizes, including freelancers and individual contractors, to qualify for and require no personal guarantee.

Sam’s Club Business Credit Card
Office Depot OfficeMax Business Credit Account
Shell Small Business Gas Card
SuperAmerica Fleet Credit Card

Corporate Credit Cards

Rather than base your credit limit on your FICO score, you may be able to meet revenue requirements for one of these corporate cards with no personal guarantee. You may need an actual S or C corporation to qualify (in some cases, an LLC might suffice).

Brex Rewards Card
Stripe Corporate Card – see our full write-up here.
ScaleFactor Visa Charge Card
Bremer Bank Business Card
American Express Corporate Cards
Capital One Corporate Cards
Citibank Corporate Cards
JP Morgan Chase Corporate Cards
Wells Fargo Corporate Cards

Business Loans

While you may be required to share your SSN during the initial application process to ensure that you meet minimum credit requirements, these lenders have funding options that require no personal guarantee.

Kabbage
Fundbox
StreetShares – requires no personal guarantee for government contractors and subcontractors to Fortune 500 companies.

Alternative Financing [Proceed With Caution]

First, when you don’t qualify for a business loan or line of credit, you can try for a personal loan or credit card instead. In fact, many companies are funded with personal capital. But, personal credit is typically more limited as far as funding amount and rewards than business credit.

Next, if you have a friend or family member willing to extend a loan to your business, you may be able to request a private contract without using your SSN and with no personal guarantee. Most people avoid this to protect perfectly healthy relationships rather than muddy them with potentially disastrous business affairs.

Then, depending on your type of and stage in business, you may also find VC or Angel investors willing to extend funding, which typically requires formal pitching and a detailed plan that outlines how you will use the money to increase company profits. In nearly all cases, investors also require a certain level of control over business management and a share of the revenue. So, if you want to maintain your operations as is (and keep your profits for yourself), this isn’t a great option.

Finally — and I hesitate here — it may be worth mentioning that other options include working capital financing or merchant cash advances. In rudimentary terms, you can take out an equity loan on accounts payable. However, I do not recommend these channels. Repayment on these types of loans is overly-expensive akin to personal payday loans.

Final Thoughts

Business lenders that provide practical funding solutions you can apply for using only an EIN are unicorns in the financial universe. But, if you’ve made it here, you should know everything you need to find one. If you’ve tried, but still can’t seem to qualify for financing, there’s plenty you can do to transform your situation.

And, if you know of other lenders who require no personal guarantee, I’d love to hear about them. For now, I recommend you learn how to build business credit so that you can access high-limit loans and credit cards with the best possible rates. If you want to learn how to obtain $100K in business credit in 30 days, I invite you to join Business Credit Workshop today.

How to Get an SBA Business Loan

By Joe Lawrence

Since the Great Recession of 2008, small business owners have had a difficult time securing financing, and that’s made it nearly impossible for many to to start or grow a business. As a result, many alternative financing companies have popped up, but unless you take precautions, you can end up paying exorbitant amounts of interest with these types of loans. Luckily, the Small Business Administration (SBA) is still in the market of helping entrepreneurs and small business owners get the cash they need.

But in order to be successful with an SBA loan application, you must understand the process and have a firm grasp of the steps you’ll need to take. Here’s a breakdown of the entire process.

What Role Does the SBA Play in Lending?

It’s important to note that the SBA doesn’t actually grant loans to businesses, but instead guarantees most of the loan (75-85 percent) to the lenders who do. Because of this guarantee, lenders have less risk so they are typically able to relax their loan guidelines and extend lower interest rates. The SBA currently works with about 500 banks in the U.S. that lend to small businesses. When looking for an SBA small business loan, it makes sense to start with your local bank if you have a good relationship with someone there, and ask if they’re an SBA lender. If not and you need to expand your search, the SBA offers a lender search tool and a current list of the top 100 most active SBA lenders in the country.

What Types of Loans Does the SBA Guarantee?

No two businesses are the same—they vary in size, years in business, and financial obligations and needs. In order to support all types of businesses, the SBA backs three specific types of business loans.

Basic 7(a) Loan Program. If you’re just starting a business, plan to purchase one, or are expanding your current business, this is the loan you should apply for. It’s the most common of the loan programs offered by the SBA. You can find out more information about these types of loans by visiting the SBA’s general loan page.
Microloan Program. If you need $50,000 or less to start or grow a business, a microloan will likely fit your needs. These loans are made by nonprofit community lenders, but are backed by the SBA. Borrowers typically need collateral in order to secure these loans, and many lenders ask for a personal guarantee from the business owner. The typical microloan amount is $13,000. You can learn more about microloans on the SBA microloan program page.
Certified Development Company (CDC) 504 Loan Program. The CDC 504 Loan Program offers loans to business owners who need to purchase fixed assets in order to expand or modernize their business. Its goal is to promote economic growth in communities across the country. Find out more on the SBA website.

What are the Eligibility Requirements to Get an SBA Loan?

While the above types of loans can apply to most business owners, the SBA has certain requirements that generally must be met in order to qualify for a loan. For instance:

The business must be small and operate to make a profit.
You must do business in the United States.
Personally invest a reasonable amount of equity in the business.
Utilize other financing methods, such as using your personal assets, before applying for the loan.
Demonstrate a need for the loan and use the loan proceeds for a sound business purpose
Not be delinquent on any debt obligations to the U.S. government.

Check Your Credit Reports before You Apply

Once you’ve determined the type of loan you want to apply for and confirmed that you meet all the eligibility requirements, it’s time to begin the process of applying for your loan.

When you apply for an SBA backed loan, the lender will ask to see both your personal and business credit reports. Before you begin the loan process, it’s wise to request copies of your report so you can clear up any inaccuracies before the lender sees them. Although the reporting agencies have great systems in place, sometimes mistakes happen and errors can end up on your report, which could hamper your ability to get a business loan. You can get copies of your personal credit report for free from all three reporting agencies, and you can purchase your business credit profiles from Dun & Bradstreet, Experian, and Equifax. In order to understand the process of checking your business credit profiles, read our post on the subject.

What Documentation Do You Need to Apply for an SBA Loan?

Next, you’ll need to gather all the documents you’ll need in order to submit your application to the lender. Not every lender requires the same information, but in general, here’s what you’ll need to provide:

Personal background information. The lender will ask you to provide personal information for each partner, such as former addresses, other names used, criminal histories, and educational backgrounds.
The personal and business credit histories for every owner of the business.
Many lenders ask for at least one year of bank statements.
Expect to provide the lender with a minimum of three years of income tax returns.
Depending on how your business is structured, a lender may ask you to provide certain legal documents, such as business licenses or certifications, articles of incorporation, ongoing contracts with third parties, commercial lease contracts, and franchise agreements.
You’ll need to provide the lender with a thorough and well thought out business plan. Your plan should include all of the typical components, such as an executive summary, company overview, product or service description, market and competitor analysis, marketing plan strategy, organization and management team, and your financial plan for the business.
The lender will also want to see projected financial statements and cash flow projections for at least one year, as well as your personal and business financial statements.
Most lenders will ask for a personal guarantee from you and your partners, especially if they own more than 20 percent of the business.
If you’re starting a new business, the lender may ask for a resume for you and any partners to judge your experience in relation to the business you plan to start.
If the lender requires collateral, you will be asked to provide a collateral document that outlines the details of the personal or business property you intend to use to secure the loan. You’ll need to provide the value of the items.

There are many forms to fill out with an SBA Loan, since it’s government backed financing!

Fill out the Required Lender Forms

Next, you’ll be asked to complete some documentation for the lender in order for your loan to be processed. The forms you’ll be asked to complete are:

Application for Business Loan. This is the main loan document, and you will have to provide many attachments to complete it.
Schedule of Collateral. This document details the personal assets you plan to use as collateral.
Statement of Personal History. The lender will use this form to evaluate your character.
Personal Financial Statement. The lender will use this form to evaluate your financial health.
Fee Disclosure and Compensation Agreement. If you hired someone to help you submit your SBA loan application, you’ll need to fill out this form and state how much you paid for those services.

Don’t Be Afraid to Ask for Help

Although applying for an SBA loan comes with less stringent requirements than with a traditional lender, the process can be cumbersome. If you need help with the process, the SBA partners with a variety of organizations that can walk you through the process.

This is a national organization that provides counselors, mentors and advisors to small business owners free of charge. Visit this page to find a SCORE office near you.
Small Business Development Centers (SBDCs) offer free business consulting services and low cost training to aspiring entrepreneurs. There are about 900 locations nationwide. You can find a list of them by state on the SBA website.
SBA District offices. You’ll find at least one of these in each state, and they can help guide you through the loan process. Visit this page to find an office located in your area.
Women’s Business Centers (WBCs). There are over 100 of these centers across the country, and they exist to help women who are starting or running a business. You’ll find a state-by-state list on the SBA website.

Applying for SBA financing is just like any other loan application process—you’ll need to be prepared and armed with the facts in order to convince the lender you’re a good candidate for a loan. Do some preliminary work before you begin the application process, such as checking your credit reports and gathering the documentation you need, and you’ll be one step ahead of the game. And don’t forget, in today’s economy with so many banks refusing to lend to business owners, SBA loans can be your ticket to a brand new business or an expansion of your current one.

How to get a Business Loan [Video]