LendingClub is Back in the Commercial Loan Business

In 2019, LendingClub threw in the towel on its business loan product after mediocre demand and results.

But now LendingClub is somewhat back in the game, due to its acquisition of Radius Bank. The company reported $624 million worth of commercial loans on its Q2 balance sheet, which consists of equipment financing, commercial real estate, and other commercial financing. The average yield on these loans is only 5.81%.

This portion of their business has received little attention, but LendingClub’s website now touts a variety of business loan options available including commercial real estate, SBA loans, equipment financing, and yacht loans.

On leases, it says its target transaction size is between $1 million and $10 million.

During a previous earnings call in Q1, Lending Club execs said they expected all of their portfolios to grow in 2021, but that their focus would remain on the consumer segment. The company originated $2.7B in consumer loans in Q2.