Lending Club Launches Multi-Draw Line of Credit for Small Businesses
We’re excited to announce the roll out of a new multi-draw line of credit product for small business borrowers, giving them a predictable, flexible, low cost way to access credit! Lending Club first piloted the product with a small group of Alibaba.com and Ingram Micro customers, and we’re now making it available through our platform to all qualified small businesses.
Similar to the small business term loan product that we launched in 2014, small businesses can apply for the line of credit by visiting lendingclub.com/business to see if they qualify in minutes, with no impact to their credit score. What sets the line of credit apart is that instead of receiving a lump sum all at once, small businesses have access to capital “on demand,” and can draw exactly what they need at that time, thus potentially reducing their interest cost. Businesses pay a 1-2% fee when they draw on the line. There are no fees or costs to open the line, with amounts that range from $5,000 to $300,000.
The business must have been in business for two years and be able to show revenue of at least $75,000 annually (other terms and conditions apply). Business owners can find out more about the terms and conditions of the credit line at www.lendingclub.com/business. You can also learn more here.