Draft 12.16.11

With suggested tweaks, 1.26.12

Opening a Lending Club account is similar to opening an account at an online bank or brokerage: simply fill out a short online application and then fund your account by sending us a check, linking your checking account or by a wire transfer.   After that, you can start investing in prime borrowers and receiving monthly payments as these borrowers repay their loans.

Account Types

Retirement Accounts: Investing towards your retirement? Looking to maximize your investment, while minimizing the effect of taxes? We offer tax-advantaged individual retirement accounts and services:

  • Traditional
  • Roth
  • Roth Conversions

Self-employed, small business options:

  • SEP
  • Simple

Fund your Retirement Account by making your annual contribution or by:

  • Rolling over your 401(k)
  • Transferring funds from a current IRA

Retirement accounts can be opened online or you can call a specialist to help at XXX-XXX-XXXX M-F 9-5 PT.

Investment Accounts: If you’re investing for any purpose other than retirement – a home purchase, your child’s college fund – this account type is right for you.  Account types include:

  • Individual
  • Joint
  • Corporate
  • Trust
  • Custodial and accounts for minors (UTMA/UGMA)

Investment accounts take only a few minutes to open. Start here »

Build a Portfolio

Once your account has been created and funded you are ready to invest.  Most investors choose to spread their investment across the largest number of loans possible.  For example, with an investment of $20,000 you can purchase 800 individual $25 Notes.  Notes are portions of loans; for each borrower there are usually 200-300 investors funding the loan by purchasing individual Notes.

By spreading your investment across many borrowers you are increasing diversification and reducing that impact of any single loan’s performance on your overall returns.

Our Notes are graded A1 through G5 and carry an interest rate commensurate with their risks, so you can build a portfolio that fits your goals.

Annual Percentage Rates (APRs) Charged to Borrowers by Grade




Monthly Cash Flow

Our Notes are unique among investments as they generate monthly cash flow.  As borrowers make payments, cash is disbursed directly to investor accounts. Payments from borrowers are auto-deducted from their bank accounts – so our borrowers don’t need to remember to send in checks or call in to pay over the phone.

For example, a single $10,000 investment* would produce roughly $320 in monthly payments from borrowers. This cash can be reinvested or withdrawn so investors have total control over their investments.

[*Assumes a 9.5% net annualized return, similar to D grade Notes; no reinvestment; 36-month term]



As of November 11, 2011 every investor with 800 Notes[1] or more purchased directly from Lending Club has experienced a positive return, regardless of the timing of investment or the allocation across Note grades. You can purchase 800 Prime Consumer Notes for as little as $20,000.

Lending Club offers seven Note grade for you choose from – you can stick to a single grade, but most investors diversify across grades.  Since June of 2007, our Notes have provided net annualized returns – returns after defaults and fees – of X.XX% to X.XX%.

Returns by Grade since June 2007



Lending Club charges a 1% service fee on each payment that is received from the borrowers.   There are no account opening or maintenance fees; no inactivity or withdrawal fees on standard accounts.  If you don’t receive a payment from a borrower, neither do we.

Lower Cost, Means Higher Returns

By providing our investors a platform to directly invest in high quality loans, we avoid the cost and complexity of the traditional banking system and pass the returns on to you. Lending Club only approves the most creditworthy borrowers (we have historically approved less than 10% of all loan applications) so that investors can benefit from the high returns of prime and super-prime lending.

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[1] Return calculations based on accounts that have invested in 800 or more unique borrowers. 800 Notes can be purchased with $20,000. All data as of November 11, 2011. The availability of Notes/unique borrowers is dependent on your investment criteria. There is no guarantee that you will be able to invest in 800 or more Notes/unique borrowers promptly, if at all. The foregoing is not directed to the specific investment objectives, financial situation or investment needs of any particular person and should not be considered investment advice. You should consider reviewing the prospectus with a financial advisor prior to investing. Past performance is no guarantee of future results.