Lendingclub.com Invest is something you don’t want to miss out on. There is a lot to say about the platform, lending club. it is a sure bet place to go to if you need financial solutions for your business. lending club has proven to be a good platform for getting personal loans for small businesses. right here, we are going to major on the investing platform of the company, we will be giving a detailed review on lendingclub investing.
over the years, many have tagged the name, lending club to a loaning platform. today we are going to introduce you to a different area under the lending club, a part with which you can make real money through lending club.
first off, what is lendingclub? in this context, ill give you a definition that suits what i am talking about.
lending club is a business that gives people ( investors) the opportunity to make money by lending to borrowers and receiving interest for loans.
lending club is profitable because sometimes it works with higher loan interests than that of banks.
www.lendingclub.com is the major website of the lending club company. On this website, you can harness the full potential of lendingclub. the website allows you to apply for loans, give out loans to borrowers, track your loans, etc. now let’s look at the various packages that the lending club platform offers and how to harness them for our use.
lending club does not work the way other p 2 p lending companies work. as an investor in a lending club, you do not lend directly to borrowers, instead, you buy SEC-registered securities called notes. each note represents a portion of the loan.
How Does Lending Club Investing Work
as an investor, you will get the monthly payments from the borrower. the lending club will only deduct an annual 1% and some other fees. thew amount you will receive will depend on the number of notes you buy for each loan.
the type of interest you will receive for each loan will depend on how risky the loan is. usually, loans are graded. loans with lower grades are given higher interest because they usually have higher risks ( this means that the borrower has a higher chance of defaulting).
it is very advisable to diversify your portfolio with different notes to lower your investment risks.
Trading Notes on Lending Club
apart from buying notes and waiting for them to mature. there is another way you can make more money. you can decide to buy notes and sell them for more liquidity. this can be done through the note trading platform. one good way is to buy notes that are close to their maturity date. Trades of notes are settled within one business day.
A lending club investor is someone that has laid done his funds to help borrowers fund their businesses. these investors do this by buying notes to fund borrowers or trading these notes to get more money. becoming a lending club investor has certain requirements. let’s take a look at them below;
Lending Club’s Investor Requirements
There are several types of account types that lending club offers to their investors. These include corporate, custodial, individual, joint, rollover IRA, Roth IRA, simple IRA, traditional IRA, and trust.
The following criteria must be met before you can become an investor in the lending club;
- you must be 18 years of age and have a valid social security number
- in most states, the gross annual income must be up to $70,000
- your net worth must be at least $70,000
- in California, investors are required to have a net worth and gross annual income of $85,000
- if your net worth is $250,000 ($200,000 in California), you are exempted from meeting the annual income requirement.
- If you’re from Kentucky, you must first qualify as an “accredited investor” before investing in the platform.
- the lending club investing is only available for certain states due to legal restrictions
- trust companies and corporations must undergo a verification process before they can participate in lending club investments.
- for IRA accounts, the minimum deposit required is $5500
These are the requirements for becoming a lending club investor. please note that any income gotten from the lending club platform is regarded as ordinary income and is subjected to capital gains taxes.
How to Invest in Lending Club
if you want to invest in a lending club, you can easily do that from their major website. at the home page of their website, www.lendingclub.com. After that, you can scroll done to see the investment packages. you can click on the investment button and navigate to the type of investment package you want. whichever option you choose you will have to answer a few questions. usually, you will be required to contact a team member via email.
Lendingclub Customer Service Number
do you have an issue that you would like to report or discuss personally with the leading club customer care, their customer care can be contacted from their website, www.lendiongclub.com. you can get their support by clicking the help button on the home page of their website.