Lending Club Blog

Posted by :: May 24, 2007 @ 3:48 pm

Live!

Welcome to the Lending Club blog. We are very excited today to be part of this fantastic new Facebook platform and service launch. We believe it to be a grand opportunity for our young company and for Facebook members. Facebook is one of the fastest growing social networks today, with 24 million active users and more joining every minute.

We started Lending Club with the idea that trusted social networks and affinity groups were a great place to deliver a peer-to-peer lending and borrowing service. In selecting our first partner, we looked hard for a social network that its members trusted to deliver more than just a good time. Validation and trust are critical to us. Facebook provides that level of relationship and validation in a way few social networks do. When you are dealing with money, either as a borrower or lender, you need a sense of camaraderie that goes beyond drinking buddies.

Lending Club is creating a direct peer-to-peer shortcut in borrowing and lending, bypassing the traditional role of the banks. Banks usually collect deposit on one side and extend loans on the other side; we provide a shortcut, a way to directly match lenders with borrowers. Starting today, we are offering a way for Facebook users to take personal loans of $1,000 to $25,000 funded by other Facebook users. Members who have the financial capacity are now able to extend loans to a portfolio of other members they choose from their network, neighborhood, and alumni. Loans carry a lower interest rate than bank loans but higher than a savings account, so both lenders and borrowers get a good deal.

Peer-to-peer lending delivers great value to both lenders and borrowers, but can also present risks to the lenders. Making the service available to trusted social networks and other affinity groups reduces the risks by leveraging existing groups, connections and relationships among people, and make sure we all help each other.

Share and Enjoy:
  • Print
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks
  • Blogplay
Print This Post Print This Post

11 Comments

  1. Founders Cafe:

    Let me be your all time first commentator ever. Rex,
    congratulations on your new venture and gig. I am happy that you
    are doing what you love. This could be perfect timing for me to try
    out this service as my Internet startup will be needing some extra
    startup cash in the very near future. Looking forward to create a
    mutual beneficial relationship. Jimmy Huen "http://FoundersCafe.com" rel="nofollow">Founders Cafe

  2. Marshall Kirkpatrick:

    I will be very curious to see how much traction this gets in
    Facebook. I hope it works well for all parties involved.

  3. Alex Williams:

    Hey, Rex -- This is very cool! Congrats on the gig! Hope you are
    well. Alex.

  4. Social Strategist:

    Social Strategist's Guide to the Facebook Open
    Platform...
    [...]This is the 6th most trafficked site in
    the U.S. giving everyone access to their users, free of charge. And
    believe it or not, that's only part of the reason why ...

  5. Wiseclerk.com:

    Congrats on being the first competitor to prosper

  6. Larry Chiang:

    Very cool! :-) I think the new Facebook F8 platform is killer and
    with great apps like LendingClub, it'll be a *hit*

  7. Prosper group news » Blog Archive » Update on Lendingclub launch:

    [...] up on my earlier post regarding the LendingClub
    launch read Colin Henderson's view on this. Furthermore in
    this blog it says (without giving [...]

  8. Colin Henderson:

    Congrats on entering this space. With the Prosper already here, the
    Virgin announcement, and Zopa coming, its an exciting space.

  9. Tradervic:

    Kudos to you Rex!,,,and congrats on your new project....bestest of
    luck...Looks like its shaping up to be something big.

  10. sarzi:

    Congratulations, Rex!

  11. Team Lookery : that’s what it is really about | Lookery Blog:

    [...] was I? I was still working full time consulting for another
    start up helping them while they were launching as a financial
    Facebook app, as well as helping them get their blog up and
    running. Once Dave and [...]

Leave a Reply

Allowed XHTML tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> <p>

No-Fee IRA

No hassle 401K rollover or IRA transfer.

Combine over 9.5% net annualized returns with the tax advantages of an Individual Retirement Account.

Learn more »

Borrowers hurt by the credit squeeze and investors looking to boost their returns are increasingly turning to the same place: peer-to-peer lending.

See what others are saying about us »

Featured Borrower

  • Sarah
  • Newfield, NJ
  • Pay off Credit Cards
  • $15,000 loan at 9.79%APR

"As an accountant, I am very conservative about money. My daughter's credit card jumped her interest rate... I found Lending Club and got a loan to pay off her credit card."

Browse more personal loans »