Bonus payments for Note purchases

[JDII]

I got this email the other day from Lending Club. Figured I'd put it here in case anyone missed it.

As we continue to navigate these challenging times together, we're humbled by the outreach of our investors asking how they can help our members. LendingClub has always been about people helping people, and this spirit is stronger today than ever.

So, as an investor, how can you help? The easiest way to express your support is to keep investing on the platform: an investment in LendingClub Notes provides funding to members looking for help, and today they need that support more than ever.

As a thank you for your dedication to our community, we'd like to offer you a bonus payment1 of 50 basis points, or 0.5% for all new Note purchases made between June 1 and August 31, 2020.

How does the bonus work?

Step 1: Invest in Notes from June 1 to August 31, 2020.
For example, if you invest $10,000 in new Notes between June 1 to August 31, 2020, you'd earn a 0.5% bonus payment, which would be $50.
Step 2: Check your account to see how much bonus payment you earned.
We will credit your account by September 30, 2020. The bonus can only be used to purchase new Notes, it cannot be withdrawn for cash or transferred into another account.
At LendingClub, our investors know there's more to our platform than just the investment return—it's about the people behind the loans who are on a path to better financial health for themselves and their families. This bonus is our way to say thank you for your support—we're heartened to see this incredible community in action.

[latitude42]

Yesterday seekingalpha made a note of the promo, and shared their comments... pointing to LC's financial struggles (link below).

Since the March 23 lows, the S&P Financials are up 35%. LC is down 27%.

https://seekingalpha.com/article/4351541-lendingclub-signs-of-desperation?utm_source=news.google.com&utm_medium=referral" class="bbc_link" target="_blank">https://seekingalpha.com/article/4351541-lendingclub-signs-of-desperation?utm_source=news.google.com&utm_medium=referral

[AnilG]

The article makes big claims without showing any supporting data and lot of detours. All assumptions made by writer were based on prior Q data with no change even though LC already mentioned they expect originations to be down 90% and laid off 30% of workforce. A better write up would have been based on projected cash flow, income and liabilities assuming originations declining 90+% and scaling down revenues, cash on hand, and savings in cost from already announced cost cutting measures.

Assume, if LC were to hunker down, without bringing any revenue, can they take out enough cost and has enough cash on hand to survive till end of 2021? This is the worst case scenario for LC.

https://forum.lendacademy.com/index.php?topic=21668.msg61886#msg88888888Quote"> from: latitude42 on June 03, 2020, 01:29:43 PM