14
Apr
Apr
Poll: Will Lending Club Survive the Quiet Period?
New here? You may want to subscribe to the RSS feed or browse the site map. Thanks!
Quick poll for your thoughts: Do you believe that Lending Club will survive the quiet period.
Loading ...Please take a minute to mention the reason(s) why or why not in the comments. Thanks.
Yes. I predict they will be back in 4 months.
Tom, I think they will be back too. Thanks for commenting and voting. The pool is looking rather positive for Lending Club at this point…
The main reason I think they’ll survive is that when you loan money to a person, it’s now an asset. What do you do with assets? You take out loans against them.
Lending Club can go to a bank and say “these people owe me money. Can I take out a loan against that?” and I’m pretty sure that they’ll be able to convince at least one or two banks to let them provide the loans as collateral if LC provides some headroom for some loans to go bad (as in, they only borrow 80% of the amount locked up in loans, or something similar).
I agree that they will be able to find a bank or another institution to cover some of their expenditure on loans during this quiet period — either directly or indirectly. In fact, I mentioned a similar alternative in the comments on the post about the Lending Club burn rate.