LendingClub, a San Francisco, California-based US peer-to-peer lending firm, as per recent reports, has shut down its in-house small business lending operation. But, the good news is, the firm has kept an option open for small business clients via a round of partnerships.
As per reports, Opportunity Fund, a San Jose, California-based non-profit organization that lends to small businesses; and Funding Circle, one of the largest alternative small business lenders in the US; have entered into a partnership agreement with LendingClub to offer the latter’s [LendingClub’s] small business clients’ access to credit, allowing them to borrow amounts up to $300,000 at a meagerly low rate of 5%.
“With partners like Opportunity Fund and Funding Circle, we’re creating an ecosystem where LendingClub’s members can take advantage of additional services from trusted providers that can help them generate more savings,” states Scott Sanborn, CEO of LendingClub. “This enables us to both deliver greater value to our applicants and capture a new revenue stream for LendingClub, while further simplifying our business and setting the stage for more partnerships and innovations for Club Members.”
Furthermore, as per the partnership deal, Opportunity Fund will have access to LendingClub’s online application technology providing prequalified offers to underserved small businesses, and Funding Circle will apply its credit assessment process to fund loans for established small businesses. In a gist, the three organizations are definitely to benefit with this partnership deal, allowing them to serve a broader range of applicants, which also includes rejected clients who’ve been denied loan owing to their limited credit, including those businesses owned by minorities, women, and immigrant entrepreneurs.