This second partnership provides small business AdWords users with new financing solutions.
After the launch of its multi-draw line of credit product in October, the world’s foremost marketplace lending platform is piloting a new partnership with the California-based tech company Google. Lending club will be targeting small businesses from a different perspective, using AdWords, Google’s extraordinarily popular digital advertising program.
AdWords allows businesses to advertise their products and their services at low costs. A select group of AdWords customers have received an email elucidating the availability of Lending Club’s financing solution. Business owners may borrow up to $120.000 for one year and the funds will be deposited into their AdWords account. The interest rate for this service is 0% for the first six months and 9.9% thereafter. The loans are designed to be used specifically to fund advertising campaigns through the AdWords platform, with no origination fees, prepayment penalties or hidden fees.
This is not the first partnership to have been struck between Lending Club and Google. Early this year, Lending Club partnered up with the Google for Work program, facilitating low-interest financing to eligible Google partners. The difference between these two partnerships is that the Google for Work Partners Program loans were funded directly by Google, whereas this time borrowers are simply being referred to Lending Club through AdWords.
For the moment, this is just a test, but if the partnership bears fruit, it may well expand Lending Club’s customer base. Once again though, this agreement reflects the clear synergies between disruptive online lenders and technology based network platforms – like Google, Alibaba, Sage, and so on.
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.