NEW YORK (TheStreet) -- When John Good, owner of the Bubbles Galore Car Wash in Davison, Mich., went to his local bank last year to get a $16,000 loan to expand into the self-serve dog washing business, he was denied.First Place Bank, a subsidiary of First Place Financial ( FPFC) in Warren, Ohio, already held the note for Good's original $500,000 Small Business Administration start-up loan, but the bank required massive documentation and fees -- requirements Good felt were too costly, time consuming and frankly, annoying, given the amount.
|Lending Club CEO Renaud Laplanche|
Lending Club offers a maximum of $25,000 in either three-year or five-year maturities. Borrowers are allowed up to two loans in active repayment. Money to fund the loans comes directly from qualified investors (withat least $70,000 in annual income and $70,000 in net worth), not lending institutions. Applicants must be at least 18 years old, with a valid bank account, a FICO score of at least 660 and debt-to-income ratio at most of 25% (excluding mortgage), among other requirements, according to the company. Applicants fill out an online application and are told immediately whether they passed the initial screening. If they pass, they are given loan options and their confidential request is posted to the website for two weeks or until the loan is fully funded.