[Ditty]

As someone who uses Lending Club from an investment standpoint, I get uneasy any time I see a new note being issued for a business. I use the automated investment option because I just don't have the time to go through each note. A non-collateralized loan to a small business owner is scary stuff especially when you are looking at 3-5 year terms. The chance of default is higher for a business owner with strong credit than a consumer looking to refinance their credit card debt or some other funding option. The reason being, the consumer has verified income streams to support the loan payments. The business owner may have one today, but once they start that business the income stream is going to be what comes out of that business. And, we all know that a small business owner will leverage their personal credit in order to keep a business alive (including not paying back a non-collateralized loan that only pulls down their credit score if they do not pay).

Also Ami, another swing and a miss. You continue to compare the wrong customer bases together. The minimum FICO score on the Lending Club platform today is 660. Those customers will typically pay around 25% APR. An applicant with that score can qualify for a similar rate on an MCA if not better without having to wait for the lenders to aggregate and go through Lending Club's due diligence process which follows (I have seen this take two weeks or more). What is going to happen when you stop posting garbage?

Agreed, I read Ami's articles, and I can't help but think that he's talking about a different set of borrowers than most businesses that I deal with.