There is good news for small business partners of Google. The most popular search engine company joins Lending Club to provide loans with low interest rates to its partners from small business sector.
These partners are busy with extension and operation of applications and products created by Google.
Together with Lending Club they create a special program to make these loans available. Google provides funding and Lending Club gives the platform for the new project.
Lending Club’s management is happy to work together with Google. They believe that this project will be a profitable investment and that with the help of the new program the biggest search engine company will help its small business partners to grow and to develop their businesses. However, that’s not just a single deal for Lending Club.
The lender plans to create similar programs together with large banking institutions and big companies. Google confirmed the information and its role in the joint project but didn’t provide any other details of the deal.
According to the trial program resellers chosen by Google will be able to get loans for 2 years. Loan amounts can be even more than $500,000. There’s no fee and interest rate is paid within the 1st year. Needless to say such conditions are really profitable.
Today there’s a variety of ways for business funding but short term business loans don’t suit all the companies and corporations. Also for the moment there’s no information concerning lasting of the program and eligibility of other members except resellers chosen by Google.
CEO of Lending Club says that they always prefer starting small to see first results and then they decide if it’s worth going further.
But the company actively works on joint deals with largest American banks. In April of last year Lending Club has informed the society about its strategic collaboration with Union Bank. That allowed San Francisco’s bank to buy credit products using the platform provided by Lending Club.
It’s worth noticing that Lending Club has started its business not so long time ago in 2007. In the beginning the company was providing customer loans up to $40,000. Since that time they generated more than $6 billion in lending products.
Last year the company has started offering small business loans with low interest rates so small and mid size businesses could borrow up to $400,000.
Also, in May of last year Lending Club obtained financial company offering loans for education and some medical treatments. As for the latest news, last week the company has announced the new partnership to support women in business and to provide financial assistance to female business owners.