FreshBooks has partnered with Lending Club – an online credit marketplace that helps you get financing to operate or grow your small business. Lending Club provides you multiple offers so you find the right one for your business – allowing you to hire that employee you need or purchase that fancy new piece of equipment.
Why should I care?
Getting financing for your business is one of the biggest challenges small business owners face, especially for those businesses that are just getting started. Traditional funding sources, like banks, can be difficult to access – there are lots of hoops to jump through, and even after all the hard work you put in, there’s an 80-85% chance of rejection (as if filling out endless forms wasn’t painful enough!).
That’s where Lending Club comes in. Lending Club has set out to make the whole process a cinch. They offer funding to business owners at competitive fixed rates and without the paperwork hassles associated with traditional sources. Plus you’ll be assigned a dedicated client advisor so you always have someone you can call in case you have any questions.
Keep in mind that Lending Club isn’t for everyone, nor does it solve every financing need. Lending Club is designed for people who have longer-term funding needs, need access to cash quickly, and want to avoid using traditional funding sources. If you need a short term cash-advance, or don’t need extra capital, Lending Club isn’t going to be right for you.
How much does it cost?
Lending Club’s fees can vary based on your business history, your credit and the length of the loan, with interest rates starting at 5.9% and a one-time origination fee ranging from 1-6%. Your rate is fixed so it won’t ever change and there are never any prepayment penalties or hidden fees.
For example, you receive a $5,000 36-month loan at an interest rate of 6.03% with a 1.11% origination fee (the fee for taking out the loan). You pay $55.50 for your origination fee meaning you will receive a loan amount of $4,944.50. Then you will make 36 monthly payments of approximately $152.18 at a 6.78% APR.
How does it work?
Head over to Lending Club to apply online in under five minutes. Just enter in the amount you’re seeking as well as what you intend to use the capital for. Then you’ll enter in some information about your business. Rest assured checking your rate will not affect your credit score at all. Once you’ve been approved, you’ll receive multiple offers. Select the offer they you like and the money will be in your bank account within a few days.
Interested? Give it a whirl!
Want to see what rate you would be paying to invest in your business? Head over to Lending Club. Have any feedback? Let us know below, shoot us an email or give our Support Rockstars a call at 1-866-303-6061 – we’re always happy to help.