Lending Club is now allowing residents of Texas and Arizona to invest in its consumer and small-business loans.
The company said this week that investors from the two states can now participate in the online credit marketplace, which matches borrowers with potential lenders.
The move will help individual investors “diversify their investment across hundreds or thousands of loans,” Lending Club CEO Renaud Laplanche said in a statement.
The news highlights the growth of San Francisco-based Lending Club, which began mainly as a platform for consumer loans but has steadily expanded to the small-business loans market. Adding Arizona and Texas, the second-largest U.S. state by population, means residents of 30 states can invest through Lending Club.
Lending Club, which has made more than $9 billion in loans since it started in 2007, offers small-business loans of up to $300,000 with terms of one to five years.
Getting a small-business loan through Lending Club is typically faster than with a traditional bank, and no credit check is required. Lending Club’s interest rates start at roughly 6%, but they can be as high as 26% for borrowers with a less-than-stellar credit record.
Lending Club’s growth points to the heightened competition for small business loans, particularly among alternative lenders.
Last month, Lending Club also unveiled a new partnership with Opportunity Fund for a small-business loans program focused on “underserved” entrepreneurs in California.
To get more information about funding options and compare them for your small business, visit NerdWallet’s best business loans page. For free, personalized answers to questions about financing your business, visit the Small Business section of NerdWallet’s Ask an Advisor page.
Image courtesy of Lending Club.