How LendingClub Notes May Help You Generate Long-Term Wealth

Published on: 10/17/2017. Revised on: 10/17/2017.

If you count building wealth for the long term among your investment objectives, a portion of your portfolio is likely dedicated to assets focused on capital appreciation/growth (like stocks). After all, assets like these have historically offered healthy returns, and for many investors have served as the foundation to long-term financial goals like saving for a child’s college education, funding a retirement, or passing wealth between generations.

But these aren’t the only tool at your disposal. If you’re working towards long-term financial goals, LendingClub Notes should be on your radar—here’s why:

Access to a new asset class

LendingClub connects borrowers and investors via our online credit marketplace. Our platform provides qualified borrowers with access to attractive interest rates, and provides investors the opportunity to invest in consumer credit—an asset class that was historically inaccessible to individual investors.

Consumer credit is debt that individuals take on to purchase goods and services and pay for them later. It includes purchases with credit cards, lines of credit and personal loans (importantly, it doesn’t include mortgages). Consumer credit has been a long-time favorite of banks and institutional investors, who have been attracted to its diversification benefits, predictable cash flows and return potential.
Today, LendingClub and other marketplace lending platforms are enabling new investors to discover an established asset class for the first time. As America’s largest online credit marketplace, LendingClub is leading the way. The company has over 150,000 investors and has facilitated an average of more than $8 billion in loans per year over the last several years.

How it works

LendingClub Notes correspond to fractions of personal loans that LendingClub facilitates to borrowers. Notes can be purchased in $25 increments so investors can easily build portfolios with many Notes corresponding to many different loans and borrowers. An investor can buy up to 100 Notes starting with as little as $2,500. Notes mature in 3 or 5 years, according to their term.

Learn more about measuring the returns of LendingClub, and check out other ways investors can use Notes to make strides toward their investment objectives in our new guide: Five Strategies for LendingClub Notes.

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