[isaacdstern]

http://m.us.wsj.com/articles/lending-club-has-started-process-of-going-public-1403890688?mobile=y

[nwarshaw]

Big money, disruptive technology, different business models coming/here

[amikassar]

Lending club and others are going to create a major adverse selection for the MCA / daily debit lenders. When the cream of the crop borrowers head over there --- as they are already starting to --- what is going to happen to your loss rates and P/L ?

[Scott Williams]

Lending Club does have a great product but it seems untested on the business loan side. Lending Club is doing these loans over 3-5 years but they haven't even seen how that will preform yet (on the business loan side.....not personal loans). If they start seeing a high default rate then we will see Lending Club cut terms or raise pricing.

[funding pro]

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?

[isaacdstern]

http://techcrunch.com/2014/06/29/sta...ng-of-america/

[funding pro]

Disintermediation is a word that you will see popping up a lot more moving forward. For those that haven't thought about the long term effects its probably too late for you. Kidding but not really...

[Sean Cash]

Disintermediation is a word that you will see popping up a lot more moving forward. For those that haven't thought about the long term effects its probably too late for you. Kidding but not really...

I am guilty of that. I have an article in the next issue of dailyfunder titled, "Disrupted" and I mention disintermediation and the changing landscape. I think the issue goes out this week.

[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.

[Zach]

I wonder if their financials will end up looking like this: https://www.google.com/finance?q=CNS...GOSCiALsnYGQAQ

[Finance1]

We've funded plenty of deals to owners with lending club. Lending club will compete with the space but they will get stacked heavily. Long money may solve long problems but it doesn't solve short ones. If anything, a lending club business list would be gold for a mca/ach agent.

[isaacdstern]

http://www.mercurynews.com/business/ci_26093788/lending-club-ipo-boon-online-loan-startups

[isaacdstern]

Who Will Be The next Lending Club?
http://www.forbes.com/sites/ryancald...-lending-club/

[isaacdstern]

What the Lending Club IPO Means for Business
http://blogs.hbr.org/2014/08/what-th...-for-business/

[JayBallentine]

Lending club and others are going to create a major adverse selection for the MCA / daily debit lenders. When the cream of the crop borrowers head over there --- as they are already starting to --- what is going to happen to your loss rates and P/L ?

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.

From what I can gather, cream of the crop business owners are GROWTH minded business owners. Continuous growth requires continuous investment. I've seen guys with 2 and 3 term loans, an equipment lease, and 1 or 2 daily (MCA) debits.

The only threat to the MCA industry is the MCA industry itself. Most guys' shops are flat out disasters with no efficiency. There is a correlation between efficiency and what you can charge a merchant...

Shops like Strategic for example will endure and perhaps may even find ways to work with Lending Club. They are the "Delmonico" of MCA whereas most guys are running "hot dog stands."

You have guys pumping millions of dollars into PPC and not even bothering to opt-in the folks who fill out their forms into permission based marketing. You have CEO's who run "reputable" companies stealing from lead aggregators and consultants... I can go on.

[jason]

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?

Where are people qualifying for 25% APR MCAs?

[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.

[isaacdstern]

Lending Club May Also Be Seeking a Buyer

http://www.lendacademy.com/lending-club-seeking-buyer/

[Sean Cash]

Lending Club May Also Be Seeking a Buyer

http://www.lendacademy.com/lending-club-seeking-buyer/

I feel like a sale here would make their model a failure in a sense. They came in, dominated, and then collapsed at the finish line??? Don't get me wrong, I love the concept and I invest tens of thousands on their platform, but it would just feel like they failed at what they were trying to accomplish.

Lending Club isn't the same company they used to be. They are no longer peer-to-peer. They market loans to consumers, which are in turn almost entirely funded by banks, funds, and other institutional groups. Retail investors get the scraps. And retail investors aren't even lending to the consumers, but rather buying unsecured notes from Lending Club that are backed by the performance of loans they issue.

In trying to disrupt banking, they became a bank, but one with unique technology. Whatever the banks don't want, the general public can buy into. Loans get funded fast and more loans get funded.

Lending Club's marketing strategy is similar to what everyone else on here does. Direct mail is their bread and butter but they do Internet stuff too, SEO, PPC, affiliate links etc.

I would prefer a Lending Club IPO over a company sale. A sale of Lending Club would have implications on the future of Prosper, their closest competitor, both good and bad.

[isaacdstern]

http://mobile.businessweek.com/news/2014-11-24/lendingclub-s-ipo-looms-large-over-alternative-lending-market

[isaacdstern]

Lending Club Seeks Up to $692 Million in I.P.O.
http://dealbook.nytimes.com/2014/12/...in-i-p-o/?_r=1

[isaacdstern]

Lending Club Prices Its Share Offering at $10 to $12


http://mobile.nytimes.com/blogs/dealbook/2014/12/01/lending-club-seeks-up-to-692-million-in-i-p-o/?_r=0&referrer=

[bizloanbroker]

I am absolutely buying their stock the day it opens up next week, their fee model is amazing!

[isaacdstern]

IPO For LendingClub Corp. Highlights A Whole New Form Of Banking
http://seekingalpha.com/article/2727...orm-of-banking

[isaacdstern]

LendingClub Hikes IPO Price Range; Implied Market Cap $4.69 Billion

http://blogs.wsj.com/venturecapital/...-4-69-billion/