Lending Club (LC) just extended days to fund the loans from 13 days to 30 days. I do admit that 13 days was arbitrary but what scares me is that loans are not being funded as quickly. I remember new loans being fully funded within minutes and seeing complaints about institutional investors just taking all the good loans. But that does not seem to be the case any more. Either the investment appetite for peer-to-peer loans is down or LC has made not-so-good approval of loans to increase short term revenues and profits. Both cases do not seem so promising for LC. I have been burned by LC’s stock and I am now considering to invest less in LC. I still hope LC can keep up the loan quality because peer-to-peer financing does diversify risk and help both the borrower and the lender through better rates. But always do your due diligence and protect your downside.

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