The LendingClub business checking account is designed to serve small business owners at all stages of their business. Whether you have a small business with just a few employees or a mid-size business, this account may be a good fit.
Read our review to learn whether this online banking account is right for your business.
What is LendingClub?
LendingClub offers a wide range of financial resources and services. Although it is most well-known as a lender, it also offers deposit accounts. From personal banking and savings accounts to business loans they have a wide range of services meant to help them reach a wide range of customers.
LendingClub has been expanding their banking products and banking services over the years, and when they bought out Radius Bank they created a business bank account.
LendingClub offers a high-yield business checking account called the Tailored Checking Account. LendingClub is a member FDIC, and accounts are FDIC insured.
How LendingClub Business Checking Works
To open a Business Tailored Checking account (the name of Lending Club’s business checking account), you need to be a U.S. citizen or U.S. resident alien. You will use an online application process to open your new account.
You will need to provide the following information:
- Company legal name or DBA
- Business address and mailing address
- Employer Identification Number (EIN) or Taxpayer Identification Number (TIN)
Each owner with at least 20% ownership must provide personal information:
- Date of birth
- Social Security Number (SSN)
- Percentage of ownership
- Personal email address
- Mobile phone number
There is a credit check but it is a soft credit check to verify personal information. (No minimum credit score is required.) If you have a credit freeze or fraud alert on your credit reports, it can take longer to approve your application.
Your business must have a website presence to open an account but it doesn’t have to be a website. LendingClub says a social media presence is sufficient.
To open the account you will need to make the minimum opening deposit of $100.
You will be issued a business debit card automatically. Checking account holders can contact Lending Club to open a savings account. LendingClub offers a business reward credit card, the Business Cash Preferred Card but you must apply separately.
LendingClub Business Checking Features
There are many features associated with the LendingClub Business Checking account.
- 1% unlimited cash back on certain types of debit card transactions
- Interest-bearing account if $5000 balance maintained
- Free ATMs worldwide including ATM fee rebates for out-of-network ATMs
- No monthly service fee if $5000 balance maintained
- Online bill pay
- Online invoices
- Send invoices
- Can sync with third parties tools such as Quickbooks
- Robust mobile app
- Integrate with Etsy and Square
To deposit funds you can either deposit cash using an ATM that accepts cash deposits (using ATM networks MoneyPass or Sum Network). It also offers mobile check deposit, and you can also integrate with Autobooks for free if you want to accept payments from clients.
To earn cash back on debit card transactions, you must select “debit” rather than “credit” at the point of purchase.
Rates and Fees
There is a recurring account fee of $10 a month if you don’t maintain a $5000 monthly account balance.
Business Tailored Checking charges other fees including:
- Outgoing domestic wire transfers
- Outgoing international wires
- Currency conversion fee
- Cross border fee
- Stop payment fee
Note that if you have a Tailored Checking account with unlimited ACH transactions there will be a monthly maintenance fee of $35 per month.
Rates and fees change so make sure you review the information directly from LendingClub to understand current fees.
Pros and Cons of LendingClub Business Checking
The LendingClub Tailored Checking account is competitive, and is often included in lists of best business checking accounts. Though it is competitive with other online business checking accounts, there are pros and cons.
- Competitive Interest rate on balances ($5000 minimum balance required)
- ATM fee reimbursement
- No fees for cash deposits or withdrawals
- No transaction fees for ATMs
- Competitive APY if $5000 balance is maintained
- Minimum balance requirement of $5000 to avoid monthly fee
- $5000 balance required to earn interest
- No physical branches
- Limited additional perks
Who is LendingClub Business Checking Best For?
The LendingClub Business Checking account is best for small business owners that do most of their business in the U.S., are comfortable with digital banking, and want to earn interest.
No ATM fees and a competitive APY (if you keep the $5,000 in the account) are a couple of the best reasons for small business owners to go with this account.
Meanwhile, the foreign transaction fees and costs associated with sending international wires mean this account may not be best for those that do a lot of business outside the US.