Can a corporation or llc borrow from lending club?
when it says “small business” under the need for a loan… is there any determination if this goes to a llc/c corp or whether it goes to a person? because… well… you know where I’m going with this.
I do not think there is any determination – I’ve only funded one or two business loans, but they all seemed like sole proprietorships. This was back when you could ask custom questions, before the SEC said that was harming consumers.
Some users have used the unverified purpose to conduct arbitrage on LC, by borrowing at say 8% and investing at 11%.
I ask because the limited liability of both c-corp and llc could allow you to pretty much borrow and then go bankrupt over and over again… aka free cash money yo
On some borrowers, LendingClub does sue the borrower. I imagine they’d pierce your corporate veil.