Author Topic: LENDING CLUB  (Read 1830 times)

Offline NOOCH

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LENDING CLUB
« on: August 19, 2010, 03:31:34 PM »
Has anyone tried "LENDING CLUB"?
Does anyone have any info on them?

Offline Chaikel

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Re: LENDING CLUB
« Reply #1 on: August 19, 2010, 03:41:59 PM »
From their SEC filing:

We have incurred net losses in the past and expect to incur net losses in the future. If we become insolvent or bankrupt, you
may lose your investment.
We have incurred net losses in the past and we expect to incur net losses in the future. As of March 31, 2010, our
accumulated deficit was $30.2 million and our total stockholders’ deficit was $26.3 million. Our net loss for the year ended
March 31, 2010, was $10.3 million. We have not been profitable since our inception, and we may not become profitable. In
addition, we expect our operating expenses to increase in the future as we expand our operations. If our operating expenses
exceed our expectations, our financial performance could be adversely affected. If our revenue does not grow to offset these
increased expenses, we may never become profitable. In future periods, we may not have any revenue growth, or our revenue
could decline. Our failure to become profitable could impair the operations of our platform by limiting our access to working
capital to operate the platform. If we were to become insolvent or bankrupt, an event of default would occur under the terms of
the Notes, and you may lose your investment.
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Offline Chaikel

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Re: LENDING CLUB
« Reply #2 on: August 19, 2010, 03:56:14 PM »
Quote
"Of the $62,558,797 of outstanding principal balance at March 31, 2010 that had been through at least one billing cycle, 88.87% were current, 0.49% were 16 to 30 days late, 3.27% were more than 30 days late, and 6.72% were defaulted (including loans that were charged off). A member loan is considered defaulted when at least one payment is more than 120 days late."
Is that good or bad?
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Offline NOOCH

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Re: LENDING CLUB
« Reply #3 on: August 19, 2010, 04:51:43 PM »
im not sure but it sound kind of bad that is a whole lot of bad debt

Offline mancunian

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Re: LENDING CLUB
« Reply #4 on: August 22, 2010, 05:45:12 PM »
i looked into it once.

if your looking to borrow, it should be just as hard if not harder than borrowing from a bank. you should have good credit. the advantage is the lower rates that they offer.

from chaikels quote it would be a good time to borrow; if they go under you may lose your debt

do you think its a question of ribis?

Offline Chaikel

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Re: LENDING CLUB
« Reply #5 on: August 22, 2010, 05:49:23 PM »
from chaikels quote it would be a good time to borrow; if they go under you may lose your debt
Actually, it says somewhere that they have some backup agreement with a bank that if they go under, the debt get transferred to them
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Offline AsherO

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Re: LENDING CLUB
« Reply #6 on: August 23, 2010, 03:28:20 PM »
Prosper.com is bigger than Lending Club, there's a lot of negative stuff on their wikipedia page.

As a lender, I think the risks are too high for the returns they offer.
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