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Reviews, Small Business

LendingClub Small Business Loan Review

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

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Updated September 8, 2015

You might be familiar with LendingClub already, as it’s one of the leaders in the peer-to-peer lending industry. It’s well known for personal loans, but last year, it added small business loans to its product offerings.

Lending Club is also known for keeping rates down through its use of technology-based algorithms when determining when to lend. Human underwriters are barely touching the loans. As a result, savings in the form of lower rates are passed down to consumers and small business owners.

Let’s take a look.

LendingClub Small Business Loan Details

LendingClub allows you to borrow up to $300,000 with APRs ranging from 9.77% to 35.98% on terms of 6 to 60 months.

Fixed monthly payments are offered to help you manage your cash flow better.

Here’s a payment example from its website: if you borrow $50,000 on a 3 year term at 7.90% interest, and you have a 1.99% origination fee (totaling $995.00), you’ll actually receive $49,005.00 in your bank account and your monthly payment will be $1,564.51.

The Pros and Cons of a LendingClub Small Business Loan

Pro: LendingClub offers a great range of repayment terms – most small business loans offer 1 or 2 year repayment terms. This gives you a little more breathing room and might allow for lower monthly payments. LendingClub also presents its APRs as actual interest rates, rather than factor rates, which makes understanding your loan easier.

Con: LendingClub’s origination fee is on the higher side, depending on where you fall within the range. Many lenders have origination fees of around 3%. You’ll need to do the math to make sure that the loan is worth it if you have a 3.49% - 7.99% origination fee.

Pro: Unlike traditional loans with banks, LendingClub has a simple process. For example, it doesn’t require collateral for loans under $100,000, there are no appraisals done on the business, and visits to your business aren’t necessary.

Con: Only monthly payments are offered. While LendingClub says this helps businesses manage cash flow better, you need to analyze whether or not your business can handle such a big hit once a month. Sometimes, daily payments are less disruptive to cash flow as smaller payments are easier to handle.

Pro: LendingClub takes a more personal approach than other lenders, possibly because of its background in personal loans. If your business is experiencing a down period and you can’t afford to pay, it encourages borrowers to reach out to Client Advisors to work on alternative solutions.

What Businesses Are Eligible For a LendingClub Loan?

Your business must have two years in operating history, at least $75,000 in annual sales, and have no bankruptcies or tax liens within recent years. You must own 20% of the business and have fair or better personal credit to guarantee the loan.

LendingClub can’t loan to businesses in Iowa and Idaho.

There are no specific industries excluded on its website, but the ones it works with the most are: professional and personal services, retailers, restaurants, manufactures, automotive, health and wellness providers, wholesalers, and contractors.

Application Process and Documents Needed

When you apply for a small business loan with LendingClub, you’re getting a prequalification first. The application takes minutes to fill out, and you’ll receive multiple quotes upon completion.

The good thing about LendingClub is that it uses a soft credit pull at first to see if you’re eligible for a loan. That means your credit won’t be impacted. Only if you choose to move forward with an offer will a hard pull be used.

LendingClub states that once you’ve accepted a loan, you’ll be provided with a list of documents needed, and you can be funded in as little as 5 days total.

Only one guarantor can be on the loan, so if you own the business with someone else, decide who’s going to apply. Typically, it can help for the owner with better credit to apply.

You should have the following documents ready during the application process:

  • Bank statements from the last 3 months (include all business bank accounts used regularly)
  • Most recent business tax returns
  • IRS form 4506t (to verify you filed taxes)
  • Driver’s license/Photo ID
  • Business tax ID

LendingClub doesn’t specifically say what documents it might ask you for, but it pays to be prepared. The sooner you submit documentation, the sooner you’ll get funded. Documentation is usually what slows the process down.

The Fine Print

There are no prepayment penalties or hidden fees with LendingClub. There is a one-time origination fee of 3.49% - 7.99% to be aware of, though. You can see how origination fees correlate with interest rates on this page of its website.

If you’re late making a payment, a late fee of $15 or 5% of the unpaid amount (whichever is greater) will be charged to your account.

If a payment is unsuccessful, you’ll be charged a $15 fee for each failed attempt to get the payment.

If your loan is under $100,000, LendingClub doesn’t require any collateral. Loans over $100,000 require a UCC lien on the business’ liquid assets.

Also, keep in mind that you can’t withdraw your request for a loan once it has been issued.

Which Businesses Benefit the Most from a Loan With LendingClub?

Businesses that meet the minimum requirements – 2 years in business and $75,000+ in annual revenue – will benefit the most from applying with LendingClub.

Businesses that can handle one large payment per month might also benefit more, due to LendingClub’s monthly payment structure. If your business has been having a rough time, or is in a slow season, evaluate whether or not you can handle the payments.

It’s also worth analyzing the return you want to get with this loan. What are you planning on using it for? Are you expanding? Hiring new employees? Purchasing inventory or equipment? You want to make sure the rates and terms offered to you make sense depending on what the purpose of the loan is.



on LendingClub’s secure website

Other Alternative Small Business Lenders

LendingClub is a bit unusual considering it’s a peer-to-peer lender. Institutional investors are responsible for funding these small business loans, not actual banks.

If you’d like to take a look at other peer-to-peer lenders, you can check out Dealstruck and Funding Circle.

Funding Circle is LendingClub’s closest competitor, offering loans from $25,000 to $500,000 on 6 to 60 month repayment terms. Its origination fees range from 3.49% - 6.99%, and APRs range from 4.99% to 22.99%.



on FundingCircle’s secure website

Dealstruck is offering loans from $25,000 to $350,000 on terms of 12 to 48 months.



on Dealstruck’s secure website

Would you rather be funded by a single institution? OnDeck and Fundation are two other alternatives worth checking out.

OnDeck offers loans between $5,000 and $500,000 on terms of 3 to 36 months. Its origination fee is 2.50% - 4.00%, and you only need one year in business and $100,000 annual revenue to qualify. OnDeck loans come with fixed daily payments.



on LendingTree’s secure website

Fundation offers loans up to $100,000 for working capital, and up to $500,000 for business expansion. 12 – 48 month terms are available for its working capital loan, while 2, 3, and 4-year terms are available for its business expansion loan. APRs range from 8.99% to 29.99%. Fundation allows for twice a month payments.



on Fundation’s secure website

Shopping Around Can Be Worth the Trouble

As a small business owner, you’re probably low on time as it is. The thought of applying with a bunch of different lenders to chase down the best rates and terms might not seem appealing. However, if you really need the money and are low on reserves, then you should be thinking about the financial health of your business.

Lower interest rates have the potential to save you thousands. It’s worth shopping around to find the best deal for you and your business, and if you do so within 30 days, your credit score is minimally affected. Applying with lenders like LendingClub is even better because you can receive quotes without having your credit impacted.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Erin Millard
Erin Millard |

Erin Millard is a writer at MagnifyMoney. You can email Erin at [email protected]

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Review of Green Dot Unlimited Cash Back Bank Account

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Get rewarded for your spending with the Green Dot Unlimited Cash Back Bank Account. The account earns unlimited 3% cash back earned from online or in-app purchases, but unlike most cashback programs, this one prevents you from enjoying your earned rewards immediately. The catch: You can only access and redeem your cashback rewards if your account is in good standing a year after registration. In addition, there is a $7.95 monthly fee, although it’s simple to get around the fee.

While you wait for your account registration anniversary, you can use this account’s other features to your advantage. For one, Green Dot Bank can get you your paycheck up to two days in advance through direct deposit. You can also use the 3%* APY Green Dot Bank High-Yield Savings Account to stash and grow your money.

Green Dot doesn’t have any branch locations of its own, so it relies heavily on its app and participating stores to offer its services to customers. This makes it slightly tricky for users who need quick and easy ATM access.

Read on to learn more about the FDIC-insured Green Dot Unlimited Cash Back Bank Account and its rewards requirements, fees and fine print.

How does the Green Dot Unlimited Cash Back Bank Account work?


The Green Dot Unlimited Cash Back Bank Account’s biggest draw is the unlimited 3% cash back earned from online or in-app purchases. There’s no limit to how much cash back you can earn, so long as you’re using your card for online and in-app purchases (there’s more on how Green Dot identifies those purchases in a section below)

Getting access to your cash back is a little trickier, however. While you’ll see the cash back earned on each purchase reflected almost immediately, you’ll have to wait for each anniversary of your account registration to redeem the funds. On each anniversary date, you can transfer your cash back rewards into your Unlimited Cash Back Bank Account. Your registration date is the date you actually register your card no matter where you got it, either at a store or online.

On your registration anniversary, your account must be in good standing. This means it must have a positive balance and cannot be blocked or flagged for any reason. If you have a negative balance, you must bring it to a positive balance before you can redeem your rewards.

Depositing cash into your Unlimited Cash Back Bank Account is also a little unorthodox, as Green Dot doesn’t have any of its own branches or ATMs. To deposit cash, you need to visit a Green Dot participating retailer, including CVS pharmacies and Walmart stores. Cash deposits are free when you initiate the deposit on the Green Dot app and complete them at a retail store. You can also initiate a cash deposit by swiping your Green Dot debit card at a participating retailer, who may charge a cash deposit fee of their own.

As for withdrawals, you can locate free ATMs through the bank’s app. Otherwise, you’ll face an out-of-network ATM fee, in addition to a potential ATM owner surcharge.

Unlimited Cash Back Bank Account features

  • Earns unlimited 3% cash back on eligible online or in-app purchases
  • Get your paycheck up to two days earlier with ASAP Direct Deposit™
  • Links to 3%* APY Green Dot Bank High-Yield Savings Account
  • No overdraft fees

Along with its competitive cash back rate, another big perk of banking with Green Dot Bank is that you can get your direct deposit paychecks up to two days in advance. Typically, employers deposit paychecks into employees’ banks two days before actual payday. So instead of letting your paycheck sit in the Automated Clearing House (ACH) limbo, where payments like these are processed, Green Dot deposits your paycheck on the same day the bank receives it. Exact timing and availability of your direct deposit will depend on when your employer submits your payment information and deposit verification.

Also included with the Green Dot app is the Green Dot Bank High-Yield Savings Account. There is no fee, and the account earns 3%* APY on balances up to $10,000. Once you’ve redeemed your cash back rewards and deposited them into your Unlimited Cash Back Bank Account, you can then transfer those funds into your High-Yield Savings Account for better savings.

As you’ll read below, the Unlimited Cash Back Bank Account is rife with fees, depending on how you use your account and manage your money. But a certain perk of the account is its lack of overdraft fees. So when you make a purchase that your balance cannot cover, Green Dot will decline the transaction, but they won’t charge a fee like most other banks do.

Unlimited Cash Back Bank Account fees and fine print

Unlimited Cash Back fees
Unlimited Bank Account purchase — online $0
Unlimited Bank Account purchase — in store$1.95 or less
Monthly fee$7.95, waived when you spend $1,000 or more in the previous monthly period
Deposit cash with Green Dot app & participating locations$0
Direct deposit$0
Out-of-network ATM withdrawal$3 per transaction
Teller cash withdrawal$3 per transaction
Out-of-network ATM balance inquiry$0.50
Foreign transactions3% of total transaction amount
Paper checks (pack of 12 checks)$5.95

There are quite a few fees to keep an eye out for when you have a Green Dot Unlimited Cash Back Bank Account. For starters, note that there is a fee when you open the account in a store. You can easily avoid this fee by opening the account online instead.

The account charges a $7.95 monthly fee. This can be waived when you spend at least $1,000 in the previous monthly period. This excludes transactions like ACH payments or prepaid card purchases. This may be easier if you do much of your shopping online, since you’re more likely to reach the minimum balance. If you’re betting the cash back you earn will offset this monthly fee, you’d have to spend $3,180 in a year to earn enough to pay off a year’s worth of the monthly fee. Plus, you’d have to wait for each anniversary to take advantage of that cash back bonus.

It also helps to keep your account activity online. You can initiate the deposit through the Green Dot app then depositing cash at a participating retailer at no charge. However, if you want to deposit cash without the app by swiping the debit card at a participating retailer, then the retailer may charge a service fee for cash deposits. Note that direct deposits are free.

As for the fine print, there is some room for error when it comes to determining which purchases are eligible for the 3% cashback. Green Dot identifies online and in-app purchases through unique merchant category codes (MCC) and “other identifying information,” according to the Green Dot website.

However, Green Dot acknowledges that sometimes online or in-app merchants use an MCC that does not properly identify themselves as online or in-app. On Green Dot’s part, the bank states that it “does not determine which MCC a merchant chooses to classify itself as and has no way of changing a merchant’s identifying information.” So if merchant misidentification is the case, your purchase won’t register as online or in-app and won’t earn 3% cash back.

Cash back also does not apply to airline tickets or to products and services that are redeemable for cash, such as gift cards, online funding of accounts, credit card cash advances, P2P funding, prepaid cards, money orders and traveler’s checks.

Opening an Unlimited Cash Back Bank Account

You can open an Unlimited Cash Back Bank Account either online or in-store at Green Dot participating retailers. When you open an account online, you’ll need to provide your full name, address, email address, phone number, Social Security number and date of birth. If you open an account in store, you’ll need to register your new debit card online or through the Green Dot app. There, you’ll need to provide your personal information.

Who is the Green Dot Unlimited Cash Back Bank Account best for?

The Green Dot Unlimited Cash Back Bank Account seems to be a better option for those who aren’t chasing a quick reward. Green Dot requires you to wait a year after account registration to redeem your cash back rewards, which may not be much of a reward for some. It’s more of an added perk than a real primetime feature since you have to wait so long.

The Unlimited Cash Back Bank Account may also be better for those who are tech savvy enough to manage their accounts largely online and in the app. Accounts are more easily opened and registered online and even cash deposits work best when done through the app.

That said, this account could be a potential hassle who want the ease and speed of ATM access. Green Dot requires you to visit a participating store to deposit cash, whether you use the app or not. For many, navigating a physical store just isn’t as convenient. When it comes to withdrawals, it may be difficult to find a free ATM nearby in order to avoid the out-of-network ATM fee.

In all, the Green Dot Unlimited Cash Back Bank Account seems to hold a lot of promise. But there’s a few hoops to jump through to earn rewards and use the account efficiently that detract from the eye-catching 3% cash back.

*Rate accurate as of August 21, 2019

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lauren Perez
Lauren Perez |

Lauren Perez is a writer at MagnifyMoney. You can email Lauren here

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Fitness Bank Savings Review

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Fitness Bank’s savings account option

Fitness Savings Account

This unconventional savings product offers customers the chance to earn an outstanding APY when they are physically active. The daily average number of steps you took in the previous month determines the APY you earn on your account balance. The table below outlines the five earning tiers that this bank currently offers:
APY Tiers*Minimum Balance to Earn APYSteps Required

If you are a US citizen age 65 or older, you qualify for a different rate schedule:

APY Tiers*Minimum Balance to Earn APYSteps Required
  • Minimum opening deposit: $100
  • Minimum daily balance to earn APY: $100
  • Monthly account maintenance fee: $10, waived by maintaining the minimum daily balance.
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $40

These rates truly are outstanding if you live an active lifestyle. The first month, everyone gets highest APY regardless of number of steps they take. After that, your APY will be assigned based on your daily average number of steps over the course of the prior month. Needless to say, if you don’t live a very active lifestyle, or if you have a health condition that would prevent you from meeting the step requirements, this may not be the best account for you.

This bank charges a $10 monthly maintenance fee if you don’t maintain a minimum average daily balance of $100. If you’re not confident you can maintain this minimum, you may want to look at a checking account rather than a savings account — keep in mind, however, that Fitness Bank only offers a savings account. If you meet the minimum balance requirement, the monthly maintenance fee will be waived.

This savings account does not come with an ATM card or checks. You are limited to six certain withdrawals and/or transactions per month, per Regulation D, which is enforced by the federal government, although banks do have some flexibility in allowing more than six per month in certain cases. At Fitness Bank, if you make more than six withdrawals per month you will be charged a $10 fee for each additional withdrawal.

If you want to go above and beyond achieving the highest APY available from this account, you can join one of Fitness Bank’s challenges. Every month, there is a step challenge where you can compete with all other participating Fitness Bank members to get the highest number of average daily steps. Top competitors will be awarded with prizes at the end of the month. You can also set up challenges just for your family or friend group, or for a group of employees participating in a workplace challenge.

How to get Fitness Bank’s savings account

Opening a savings account at Fitness Bank is a straightforward process. The bank boasts account setup will take you less than two minutes.

You’ll fill out a quick online application, supplying basic information like your name, address and Social Security number, along with documentation of your driver’s license or passport. Then you’ll need to provide funding information, namely your bank account number, credit card or debit card.


on FitnessBank’s secure website

Member FDIC

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How Fitness Bank’s savings account compares

This bank offers phenomenal rates. At the time of writing, they offer the highest savings account rate in the market — if you can rack up the steps needed to earn it. In addition, you will have to be comfortable doing your banking 100% online with this savings account. You will not receive a checkbook or ATM card – all of your withdrawals and deposits will be completed via electronic transfer. If you’d prefer ATM access or the ability to visit a physical branch, Fitness Bank is not the right match for you.

The minimum deposit required to open and maintain an account without incurring a monthly maintenance fee isn’t outrageous. But you can find savings accounts offering somewhat competitive rates without these requirements. And to repeat, you’ll have to meet the step requirements; if that challenge goes unfulfilled, the advantages of saving with Fitness Bank wane. Its rates get progressively less competitive the fewer steps you take.

Overall review of Fitness Bank’s banking products

This bank offers a unique financial product aimed at promoting wellness. Its minimum balance and deposit requirements are fairly average for the industry, as are its fees. While its offerings are fair and get more generous as you take more steps, you will likely find better rates elsewhere if you cannot realistically meet these specific fitness standards. If you can, though, you’re in for some of the best rates on the market.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Brynne Conroy
Brynne Conroy |

Brynne Conroy is a writer at MagnifyMoney. You can email Brynne here