Lending Club and Google clasp hands for a new venture for small business lending. Peter Renton of LendAcademy shares an interview with Lending Club’s Chief Operating Officer, Scott Sandborn regarding this big announcement.
Peter Renton: What is behind Lending Club’s decision to expand into small business lending?
Scott Sanborn: While we plan to continue to aggressively grow our consumer loan originations, our ambitions are to apply our efficient model elsewhere and to be more useful to more people.
PR: Why now?
SS: We have record investor demand including specific interest in small business as an asset due to its short duration and attractive yield. We want to begin the development process but be deliberate in our execution.
PR: What time frame are you looking at?
SS: We plan to begin making the loans in less than a year. The job posting is a reflection of our commitment to get started with the crucial building block of credit.
PR: Do you expect to make these loans available to all investors in $25 increments like you do with consumer loans?
SS: Retail investor availability is the tentative eventual plan. We may choose to start with a private offering until we confirm that we have the right product structure and full confidence in our credit model.
More questions arise from this development. Will this generate more avenue of returns for p2p lenders? Which other ventures does LC target? How far will LC grow in the next five years? Does this mean LC is heading towards mainstream?
Weekly Lending Club stats:
2691.90 2758.63 (+60 deposit)
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Late 31 – 120 Days: 0
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Important Note: I’m not a financial adviser. Consult your own financial adviser before making any investment decisions.