[jason]

How often do you think the following scenario will occur:

1. Business owner gets a Lending Club loan in January 2015.
2. Business owner needs more money for continued expansion in June of 2015.
3. Business owner goes back to Lending Club for more money, and they say "sorry."
4. Business owner explores other options and discovers OnDeck for example.
5. OnDeck's approval doesn't quite meet his needs so he goes and takes a second position.

This can and will happen all the time. To me it boils down to the use of funds for the business. If they're opening additional locations, purchasing equipments, tenant improvements, etc. and they have experience financing that with a Lending Clubish term loan they won't go back to the MCA well.

If they're using a Lending Clubish term loan to finance receivables, inventory, payroll (e.g. recurring short term stuff) they can and will take a second position to maintain growth. Likely, they would've been better off going with a working capital facility (factoring, ABL, PO financing, etc) to begin with.