I wouldn't touch Lending Club's business loans with a 10 foot pole. These are stated income loans where little to no underwriting is done nor are there any checks to verify revenues and bank statement legitimacy. Every other business lender out there has been crushed by the sheer volume of doctored statements. It's an epidemic. Because of that it's become a standard to use yodlee, decision logic, and other types of bank access mechanisms to verify the accuracy of information supplied by the merchant.

Not LC though. Their business loan program takes the numbers at face value and offers longer term loans and cheaper rates than what much tougher alternative business lenders are doing.

I learned about their face vaue acceptance of business revenues and legitimacy by asking a high level Lending Club employee about 6 months ago.

I love their consumer notes so far. Have a decent amount of money in but am very bearish on their business loan concept. They have a huge learning curve ahead of them.

Quote

What does this mean in the collection notes?

10/3/14 (Friday)   Lending Club contacted 3rd party and 3rd party was unable to pay at this time
9/2/14 (Tuesday)   PAYMENT Failed
9/1/14 (Monday)   Lending Club contacted borrower and borrower was unable to pay at this time

Does 3rd party mean like a guarantor or someone else who offered to make payments on the borrower's behalf?

Maybe because the word "prime" could easily be confused with the credit quality of the loans? I wouldn't want that one investor out there to claim one day that they thought "Prime" was completely safe because it was called "Prime" and not "Sub-Prime".