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Like General Motors extending credit to car dealers, Google will use Lending Club to finance resellers, service providers, and consultants in its supply chain while putting to work a portion of the tech giant's cash war chest.
January 26 -
Critics of online alternative lenders argue that their underwriting models are unproven and that a financial crisis could bring the whole industry crashing down. But while Lending Club and other startups may be relatively new to the scene, they're no greenhorns.
January 28 -
Peer-to-peer and institution-to-small business loan marketplace Funding Circle launched a new fractional loan marketplace today, the San Francisco company announced.
January 27
Alternative finance marketplace Lending Club has entered into an agreement with the U.S. branch of Alibaba to offer financing to American businesses to buy parts from Chinese manufacturers through the Alibaba marketplace.
The lines of credit for business purchases will range from $5,000 to $300,000 for up to six months, with monthly loan rates of 0.5% to 2.4%. Capital will be provided by Salt Lake City's WebBank, a longtime partner of Lending Club, while the online marketplace lender will underwrite the loans. Alibaba had previously offered loans as low as 1% per month for business purchases.
These loans will be available only to U.S.-based buyers of Chinese-made goods. According to Lending Club founder and chief executive officer Renaud Laplanche, the firm has no immediate plans to expand overseas. "We continue to be really focused on the U.S. right now."
Alibaba spent months evaluating potential partners for its short-term credit lines. "Alibaba was very deliberate about choosing the best partners," Laplanche said, calling the process "competitive."
Since its
