[LoanShark714]

Can anybody offer some feedback on these guys? Im looking at there website and $100k. 1-5 years. starting 5.9% Sounds pretty great to me. Do they have to many restrictions? or Dont pay enough commissions? how come these guys arent in the spot light as well? Thanks

[isaacdstern]

They did almost $800MM last quarter....I would say they have grabbed a nice chunk of the spotlight

No, Hedge Funds Aren't Hijacking Peer To Peer Loans, Says Lending Club CEO
http://www.forbes.com/sites/stevenbe...ding-club-ceo/

[LoanShark714]

Yes. Their numbers are impressive. I agree. They are over 4 billion and got there quicker than Can cap. I really think On Deck would have passed the 4 billion mark already as well if the amount of the loans they were offering were to be increased. I believe thats one of their main areas they need to touch up on. But I wonder what Lending Clubs ratio is on Personal Loans VS Business Loans. I know Cash Call blew up from Personal Loans and now they are getting into business financing but they also took a big hit from their personal loan operation as well due to regulations. Is a operation offering more than one line of financing better off than one who is only dealing with a certain line of financing. I would think more the better. No?

[Sean Cash]

They're a peer-to-peer lending platform. Their marketing model is direct-to-merchant so they don't pay commissions, although their "affiliate program" will pay $100 for every borrower you refer via a web link that actually gets funded.

Right now the only people that can invest in the business loan deals on their platform are institutional investors.

For personal loans, institutional investors and retail investors can invest in them together. You can contribute as little as $25 towards a single loan and LendingClub will pay you your prorated percentage of the principle and interest every month. LendingClub doesn't fund any part of the deals themselves, they just underwrite them and service them.

I personally have close to $15,000 invested in LendingClub personal loans right now, and I'm well diversified as the most I have invested in any single loan is $25.

If you're seeking modest returns, you can probably earn about 8-11% a year after charge-offs. Each loan on the platform is assigned a credit rating from A to G. The lower the rating, the higher the interest rate, but the higher the expected rate of bad debt. They tell you the historical rate of bad debt on the type of loan you're investing in every time you buy into one.

[Sean Cash]

Yes. Their numbers are impressive. I agree. They are over 4 billion and got there quicker than Can cap. I really think On Deck would have passed the 4 billion mark already as well if the amount of the loans they were offering were to be increased. I believe thats one of their main areas they need to touch up on. But I wonder what Lending Clubs ratio is on Personal Loans VS Business Loans. I know Cash Call blew up from Personal Loans and now they are getting into business financing but they also took a big hit from their personal loan operation as well due to regulations. Is a operation offering more than one line of financing better off than one who is only dealing with a certain line of financing. I would think more the better. No?

Considering LendingClub just stated doing business loans, their total portfolio is going to be around 99% personal loans.

[LoanShark714]

Interesting Business Motto, That is a whole new different ball game they are in. I could see ISO owners being able to take advantage of investing into there own deals maximizing profits. Smart move by Lending Club. Over all they are lowering their risk involved with the loan and dont have to pay out high commissions to ISO's that dont invest and share risks with the loan. Great Idea. Thanks for the 411 Sean.