Lending Club Partners and Competitors: Top Options
The Best Lending Club Partners and Competitors
If you’re looking for business funding, you might have come across the option of Lending Club, a marketplace that works with small business owners who are in need of funding. While they used to be a direct lender offering small business loans, they now only fund their loans through their two partners: Opportunity Fund and Funding Circle.
In this guide, we’ll go over Lending Club’s two partners, as well as alternative lenders:
- Funding Circle is one of Lending Club’s partners that offers loans up to $500,000.
- Opportunity Fund is a nonprofit lender that partners with Lending Club and also offers loans independent of Lending Club.
- Fundation also offers medium-term loans much like Lending Club partner loans. That said, Fundation loans can fund in just three days on average.
- OnDeck Capital offers short-term loans and business lines of credit of comparable amounts as Lending Club.
- CAN Capital offers short-term and term business loans and a long history of online lending; however, their loan amounts are smaller than the other lenders on our list.
Whether you want to know the context around Lending Club, or you want to find another lender to borrow from, learning the details of Lending Club’s partners and alternatives is a smart move.
We’ve compiled all of the pertinent information on Lending Club’s partners and three of their competitors in this guide to help you make the right business decision for you.
Lending Club Partners and Competitors
| Loan Amounts | Terms | Rates | Requirements | |
|---|---|---|---|---|
Funding Circle |
$25,000 to $500,000 |
6 months to 5 years |
Starts at 4.99% |
620 credit score (660 if you’re a sole proprietor), 2 years in business |
Opportunity Fund |
$2,600 to $250,000 |
1 to 5 years |
Starts at 4.99% |
Social security number |
Fundation |
$20,000 to $350,000 |
1 to 4 years |
8% to 30% APR |
600+ personal credit score, 1 year in business, $100,000 annual revenue |
OnDeck |
Term loan: $5,000 to $250,000
Line of credit: $6,000 to $100,000 |
Term loan: Up to 24 months
Line of credit: 12 months |
Term loan: 29.9% to 97.3%
Line of credit: 29.9% to 65.9% APR Based on loans originated in the half-year ending March 31, 2022 |
625 credit score, 1 year in business, $100,000 annual revenue |
CAN Capital |
Short-term loan: $2,500 to $250,000
Term loan: $50,000 to $150,000 |
Short-term loan: 3 to 24 months
Term loan: 2 to 4 years |
Short-term loan: 1.15 to 1.48 factor rate
Term loan: 12.9% to 29.9% APR |
Short-term loan: $4,500 monthly revenue, 600 credit score, 1 year in business
Term loan: $350,000 in annual revenue, 680 credit score, 7 years in business |
With this overview of Lending Club competitors and partners in mind, let’s move on to a more in-depth look at your funding options.
1. Funding Circle
Funding Circle is a medium-term alternative lender, and one of Lending Club’s partners. They offer loans from $25,000 up to $500,000 and can fund loans in as few as five days or as many as 15.
Loan Amount
Since Funding Circle is one of Lending Club’s partners, their loan amounts are comparable. However, with Funding Circle, the minimum loan amount you can receive is higher, at $25,000.
Requirements
Because Funding Circle offers larger loans than Lending Club, their minimum requirements for borrowers will be a bit stricter. Before you apply for funding with Funding Circle, be sure that you fulfill their slightly stricter requirements for your personal credit and your time in business:
- Personal credit score of at least 620; 660 if you’re a sole proprietor
- At least two years in business
That said, Funding Circle doesn’t have a minimum annual revenue requirement like Lending Club does.
Repayment Terms
Finally, Funding Circle will offer the same loan repayment terms as Lending Club. If you take on a business loan from Funding Circle, you’ll have a loan repayment term of six months to five years to repay the debt. There are no prepayment fees and their interest rates can be as low as 4.99%.
2. Opportunity Fund
Lending Club’s second partner is Opportunity Fund. Opportunity Fund is a nonprofit that offers microfinancing which sets it apart from some other lenders and Lending Club as well. However, one drawback of working with them is that they will not lend to businesses based in Montana, North Dakota, South Dakota, Tennessee, Vermont, or Washington D.C.
Loan Amount
With Opportunity Fund, you can get a loan for as little as $2,600 to as much as $250,000.
Requirements
The main requirement to work with Opportunity Fund is to be a business owner in one of their eligible states or territories. They don’t offer minimum credit score or years in business requirements on their website, but they do note that you don’t need a social security number to apply and there is no application fee.
3. Fundation
Fundation is not a partner of Lending Club the way Funding Circle and Opportunity Fund are. If you’re looking for fast funding, then consider Fundation as an alternate lender to Lending Club and its partners. On average, Fundation tends to fund applications in three days. Plus, Fundation will charge an origination fee of 3% of your principal amount, while Lending Club could charge an origination fee as large as 6.99%.
Here are the details on this Lending Club competitor.
Loan Amount
That said, Fundation loans can be slightly larger than the ones that Lending Club’s partner Opportunity Fund can fund. Fundation can fund loans ranging from $20,000 to $350,000.
Requirements
This Lending Club competitor will be slightly more strict with their minimum requirements, though. Make sure you fulfill the following three minimum credentials before you apply for funding from Fundation:
- 600+ personal credit score
- At least one year in business
- At least $100,000 in annual revenue
4. OnDeck Capital
For another Lending Club alternative, consider OnDeck Capital. This online lender offers short-term loans and lines of credit and can fund applications in as little as one business day. OnDeck charges an origination fee between 0% to 4% for their short-term loan based on whether you’ve funded with them before.
Loan Amount
OnDeck’s term loans can range from $5,000 to $250,000, while their business line of credit product ranges from $6,000 to $100,000.
Requirements
To qualify for either a term loan or line of credit from OnDeck, you’ll need a personal credit score of at least 625, $100,000 in annual revenue, and at least one year in business. You will also need a business bank account that you make at least five deposits into each month. If you’ve ever filed for bankruptcy, OnDeck requires at least two years to have passed since discharge. Finally, OnDeck will also require a personal guarantee and will file a blanket lien against your business once you’ve accepted funding.
5. CAN Capital
Our last Lending Club competitor is CAN Capital, an alternative lender that launched in 1998—giving it the longest tenure of any player in the online lending industry. CAN Capital offers short-term and longer-term business loans, but their approval process typically takes longer than other online lenders—anywhere from a few days to a month.
Loan Amount
Short-term loans from CAN Capital range from $2,500 to $250,000, while their term loans range from $50,000 to $150,000.
Requirements
Because CAN Capital’s term loans have longer repayment terms and lower interest rates, they have stricter requirements. Ideally, you’ll have seven years in business, a credit score of 680, and while no minimum revenue is required, an average of $350,000 is preferred.
These requirements can be tough for a small business to meet, but luckily, their short-term loan product is more lenient: a credit score of 600 (550 if you’ve been in business for over six years), one year of business history, and $4,500 in monthly revenue.
Repayment Terms
Terms for their short-term loan product fall between three and 24 months. If you qualify for their term loan product, you’ll have longer repayment terms of between two and four years.
What Lending Club Alternatives Can Offer
If you’re looking for Lending Club’s top competitors, there’s likely something about Lending Club and its partners that’s a deal-breaker for you. Identifying the reason will make finding another option easier for you.
Here are some top reasons for looking beyond Lending Club to their top competitors for your business funding.
1. Larger Loan Amounts
If you need a loan of more than $500,000 for your business, then you will need to look into Lending Club alternatives, because Lending Club only facilitates business term loans of $5,000 to $500,000.
2. Faster Funding
Even though Lending Club can technically fund you within a day, they can also take up to 30 days. They don’t disclose how long they take on average to facilitate business loan applications, so you’ll have to rely on this wide range to understand how long it might take to get the proceeds from a Lending Club loan in your bank account.
3. Less Strict Requirements
You’ll also need to look into top Lending Club competitors if you don’t meet Lending Club’s minimum requirements. Make sure you fulfill the following minimum requirements before you apply for funding from Lending Club:
- No recent bankruptcies or tax liens
- At least one year in business
- At least $50,000 in annual revenue
4. Longer Repayment Terms
Additionally, if you want a repayment term that is longer than five years, you’ll need to look beyond Lending Club for your business loan, as they only offer loan repayment terms of one to five years. Though a repayment term of up to five years is pretty stellar—especially for an alternative lender—if you’re looking for an even longer repayment term, then you’ll need to explore your Lending Club alternatives.
Frequently Asked Questions
The Bottom Line
Now that you’ve made it through all of the necessary details of the Lending Club competitors and partners, it’s time to start thinking about your next steps. If the reason you didn’t move forward with Lending Club is addressed by one of these Lending Club competitors, then you should seriously consider applying for funding from one of them.
Whether you’re looking for larger loan amounts, quicker funding, more accessible financing, or longer repayment terms, there’s an alternative to Lending Club out there that can satisfy your needs and preferences for your business funding.
