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Lending Club, a major peer-to-peer lender, recently announced impressive second quarter figures, reporting that it facilitated $1 billion in new credit during the period.
"This milestone brings us another step closer to our goal of transforming the banking system, one billion at a time," Renaud Laplanche, founder and CEO of Lending Club, said in a statement. "We believe we can make the system more cost-efficient, more transparent and more customer friendly, and are committed to offering cost efficient products that help people achieve their financial goals."
Company maintains aggressive growth
As a result of its strong second quarter performance, the company generated roughly 20 percent of its total loan volume in a mere three months. This torrid expansion may be part of a larger trend, as the company has more than doubled its loan volume every year since 2007.
The company's total credit originated has surged in the last few years, climbing from $2 billion in July 2013 and $1 billion in November 2012.
Q2 lending trends
Lending Club facilitates credit for many purposes - including funding entrepreneurial ventures and paying off credit card debt - and most loans in the latest quarter were granted so borrowers could pay off high-interest debt, Vator reported.
The P2P lender extended 362,000 loans during the period, and 288,000 were for this purpose, according to the news source. Another 32,000 were made to purchase big-ticket items like vehicles. Small businesses obtained 6,500 loans through Lending Club in the three months.
Key innovator
In addition to making headlines for its impressive growth, the company has generated substantial visibility for its innovative nature. In June, CNBC named Lending Club to its list of top 50 companies that are changing the business environment. This annual roundup singles out "the country's most ambitious and innovative companies changing the economy and overall business landscape."
Lending Club gears up for IPO
Lending Club might generate substantial visibility as it readies itself to hold an initial public offering. The company began this process earlier in 2014, and has already started selecting banks - including Goldman Sachs and Morgan Stanley - to lead this endeavor.
Many expect the company's IPO to draw significant attention to the P2P lending industry, and help the sector build legitimacy, according to Silicon Beat. In a recent interview with the San Jose Mercury News, Laplanche said Lending Club didn't need to hold an IPO to raise money.
Conducting one of these transactions is "more about raising awareness and also giving an opportunity for the customers to be owners of the company and have a stake in the company," he told the media outlet.
Garnet Capital Advisors 500
Mamaroneck Avenue, Harrison, NY 10528
(914) 909-1000
info@garnetcapital.comGarnet Capital Advisors 500
Mamaroneck Avenue, Harrison,
NY 10528
(914) 909-1000
