February 10, 2015
Lending Club, one of the world's largest online marketplaces that connects borrowers and investors, and alibaba.com, one of the leading platforms for global wholesale trade owned by alibaba group, have announced a strategic multi-year partnership, making Lending Club the exclusive solution for point of sale business financing of up to $300,000 for alibaba's millions of U.S. business buyers.
Under the newly formed partnership and a new product called 'Alibaba.com e-Credit Line powered by Lending Club,' U.S.-based business buyers can apply for the critical working capital they need when purchasing goods from China-based suppliers on Alibaba.com.
Michael Lee, Alibaba's global marketing and business development director, said in an official press release: 'Our mission is to make it easy to do business anywhere. We want to make financing as efficient as possible for the millions of U.S. buyers that do business through Alibaba.com and are pleased to bring Lending Club's simple, low cost and transparent financing products to our U.S. buyers.'
'We share Alibaba's commitment to enabling frictionless global e-commerce by U.S. small businesses,' said Lending Club's founder and CEO Renaud Laplanche, in an official press release. 'We believe that access to affordable credit through Alibaba.com and the Lending Club platform can become a competitive advantage for small businesses across America.'
With this new product, a U.S.-based small business can apply for financing in under five minutes through a streamlined process and obtain a line of credit from $5,000 to $300,000 to make a payment to a supplier for purchases on Alibaba.com. The line of credit matches repayment terms to the cash flow cycles of the business, vets suppliers and shipments, and even transfers the funds directly to the supplier. Monthly fixed interest rates start at 0.5%.
Lending Club recently announced a new pilot program in partnership with Google, Inc. to facilitate low-interest financing to eligible Google partners. The program leverages Lending Club’s ability to provide access to credit in a highly automated, cost-efficient manner, and allows Google to purchase the loans, thus investing its own capital in its partner network to drive business growth. Lending Club will service the loans. As of September 30, 2014, more than $6 billion in loans had been originated through the Lending Club platform, helping more than 400,000 borrowers achieve their financial goals.