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From Zero to $1 Billion: The Lending Club Story

ZERO $1 BILLION NOV 5, 2012 FROM TO $1 Billion THE LendingClub STORY $1 Billion $900,000,000 In the five short years since its first loan - $5,000 to help a borrower make home improvements - Lending Club has grown from a fledgling Internet startup to a company that is revolutionizing the consumer credit industry. It has helped more than 80,000 borrowers to achieve their financial goals. Its 45,000 investors have invested in Notes generating a Net Annualized Return by grade between 5.73% and 13.10%(1). How have borrowers used that money and $800,000,000 $700,000,000 what's in it for investors? $600,000,000 Here is our story. $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 2007 2008 2009 2010 2011 2012 Cumulative Loan Volume Growth by Month SO, WHAT EXACTLY HAS $1 BILLION ENABLED OUR BORROWERS TO DO? = 500 loans 57,000 loans 14,000 loans to pay down credit card debt ($658 Million) for cars, boats and more ($106 Million) 5,600 loans 1,600 loans 3,500 loans 3,200 loans for home improvements ($62 Million) to fund weddings ($16 Million) to finance major purchases $27 Million) to raise capital for small businesses ($43 Million) "I BELIEVE THAT, WHEN COMPLETED, MY CAR WILL BE WORTH MORE THAN ..and one Batman fanatic built his very own 1966 Gotham Cruiser Batmobile, thanks to a $18,000 loan $100,000! WHAT DIFFERENCE HAS ALL THAT MONEY MADE? LendingClub Typical Credit Card Loans to pay off credit cards average around $13,000 Those who've borrowed to pay off credit cards - the most popular loan purpose - often saved thousands of dollars in interest with a with a 14.75% APR 15.92% APR (Bankrate.com average as of 11/1/2012) payments. it would take you 39 years assuming you make minimum payments only refinanced with an installment loan over 36 months You would pay a total interest cost of You would pay a total interest cost of $24,296 $3,041 BUT WHAT'S IN IT FOR INVESTORS? Range of Annual Returns(2) 2007 - 2012 More than $85 Million in interest paid so far and, as of today, 21 consecutive quarters of positive platform returns. The iShares Core S&P 500 ETF, meanwhile, has had 10 negative quarters since 2007. 50% +40.7% +26.4% Average Annual Return(2) +10.1% 2007 - 2012 +8.5% 0% +9.3% +8.5% +4.2% -23.9% -37.0% -50% High Yield Corp Bonds Lending Club Notes 3) S&P 500 High Yield Corp Bonds S&P 500 Lending Club Notes(3) THE STOCK MARKET'S PERFORMANCE OVER THE LAST FIVE YEARS It has been a nauseating roller-coaster ride for investors, from record-highs in the summer of 2007, through the double-digit dives of the stock market collapse and yet more gains. so after a five year wild ride, as of October 31 , 2012 the S&P 500's average annual return is -6.83%. (Source: Google Finance) S&P 500 index 1,600 1,400 1,200 1,000 800 600 2007 2008 2009 2010 2011 2012 As Lending Club increasingly revolutionizes the consumer credit industry, more and more borrowers and investors are turning to us to help them achieve financial goals. Within the next twelve months, Lending Club expects to generate Our next $1 billion dollars in loans! (1) Net Annualized Return per grade net of defaults and fees from inception to 10/16/12. To be included in the Net Annualized Returns calculation, a Note must have been originated at least 3 months prior to the calculation date. Market Indices Limited. Presumes interest payments and principal were reinvested. Results are net of fees and expenses. (2) S&P 500 results based on the iShares Core S&P 500 ETF, which seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P 500. Presumes dividends from dividend paying equities in the index were reinvested. Results are net of fees and expenses of the ETF. Lending Club performance presumes selection of a portfolio matching overall performance of the portfolio of the Lending Club platform as a whole, taking account of defaulting Member Dependent Notes and servicing fees and presuming reinvestment of all principal and interest payments into additional Member Dependent Notes with matching performance. Actual performance of any portfolio of Member Dependent Notes by an investor may vary. Past performance does not guarantee future results. (3) For 2007, results are annualized based on total returns from July 2007 High Yield Corporate Bond results based on the iShares iBoxx High Yield Corporate Bond Fund, which seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the iBoxx Liquidity High Yield Index, through December 2007. For 2012, results are annualized based on total returns from January 2012 through September 2012. ALLL results are net of fees and expenses. corporate bond index compiled by Sources: · Lending Club data Lending Club Notes are offered by prospectus filed with the SEC. Please consider the risks of investing. S&P 500 EconStats · Federal Reserve credit card calculator İShares.com LENDER All loans made by WebBank, a Utah-chartered Industrial Bank, Member FDIC. LendingClub Investors earn better returns, borrowers pay lower rates.

From Zero to $1 Billion: The Lending Club Story

shared by visually on Nov 05
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In the five short years since its first loan - $5k to help a borrower make home improvements - Lending Club has grown from a fledgling internet startup to a company that is revolutionizing the consum...

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