Financial institutions are being affected by many things these days. The increased government regulation on the amount of money they have to have available and current economic conditions have caused them to tighten their standards. This tightening is leaving both individuals and businesses looking for new way to borrow money. It is also giving birth to new types of loans. So, what is Lending Club and how does it work?
Lending Club is one of the businesses that came into being in response to the need for non-traditional loans. It joined the likes of business like GoFundMe. They are not a traditional financial institution. They are a “credit marketplace”. This is much like a marketplace for any individual service. People and businesses that are needing to borrow money go on there and provide information about their need. Then people and businesses that are willing to loan money can provide the needing funds.