Lending Club Issues $50 Million in Loans
Some time yesterday, Lending Club passed the $50 million loan mark, showing yet again that they are a force to be reckoned with in the global P2P lending space. As of today, Lending Club has issued $50,435,050 across 5,764 loans, for an average of $8,750 per loan.
Lending Club continues to grow at a solid pace, and is on track to fund about $4.1 million in loans during August 2009, which would be an increase of 6% over the previous month. This also puts Lending Club at about 4x the monthly loan volume of their nearest competitor Prosper, who relaunched in July and will be completing their first full calendar month with around $1 million in loans funded. To date, Prosper’s aggregate loan volume of $180 million still dwarfs Lending Club’s progress.
At $4.1 million, Lending Club’s August 2009 performance would not be their highest-grossing month ever. That high water mark was set back in March 2008, shortly before Lending Club closed down for SEC registration. Loans during that period likely included a high volume ofloans funded by Lending Club themselves, as disclosed in their S-1. Lending Club has since stopped the practice of bankrolling their own loans.
Unfortunately in the past, Lending Club has watered down their successes with claims like “Lending Club Hits $500 Million in Loan Demand“, boasting that they had turned away $500 million in loan requests. On one hand, it’s a lot like saying “our marketing is so lousy that we have to burn through nine customers before we find one worth approving”. But this aura of exclusiveness seems to be a cornerstone of the Lending Club brand, as it is cited frequently in interviews and during investor education calls. And having reached $50 million in loans funded, might just be working.
Graph credit: LendingClubStats.com
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more than 1/3 was their own money from debt and equity financing-no surprise the “loans” are increasing with another $13 million in venture funds freshly minted
These guys are demonstrating p2p lending works. The only way to make it work is with super high quality borrowers. Bad borrowers will always try to get loans no matter what. I’ll keep investing via Lending Club, it has exceeded my expectations, and what’s more, it has made me more returns than the other investments I’m in.