Google to Provide Small Business Loans Through LendingClub

[glakes]

Online loan provider LendingClub, which was one of Google Capital's first investments, announced Thursday that the two companies are working together to extend credit to a wider swath of small businesses. Google has 10,000 customers using its business tools, like web-based documents and spreadsheets, Gmail and its cloud-hosting technology.

Companies in Google's network will be able to apply for credit on LendingClub's platform, and if accepted, Google can then purchase the loans, thus becoming the lender.

Google has "the opportunity to earn more interest on loans than what Google Treasury is earning with the tens of billions of cash they have."

[cnbc.com...]

Let me guess, creditworthiness will be provided by Credit Kharma, yet another company Google holds a large financial interest in.

[lammert]

For Google partners, two-year loans, serviced by LendingClub, will start at 5-percent interest and the rate can fluctuate up or down in the second year based on performance.

Nice business model: "Hey you earned more than expected, so I deserve a greater piece of the pie." This is much more an investment scheme than pure banking.

[toidi]

If g is financing my business then will they have motivation to help keep it from failing?

[samwest]

How ironic...under the current greedy regime, our traffic is diverted so somebody can make 16B/qtr. That same somebody then turns our misfortune into more fortune. Sounds like they're working on the perfect "air tight".