Today, Lending Club (NYSE:LC) announced that it will be the exclusive provider of short-term, point-of-sale credit for U.S.-based businesses purchasing items from Chinese suppliers on Alibaba (NYSE:BABA), a role previously performed by the Bank of China. The new loan product, called “Alibaba.com e-Credit Line powered by Lending Club,” has been in the pilot stage for some time and officially launched today. It gives qualified U.S. buyers of Chinese goods on Alibaba.com access to $5,000 to $300,000 of purchase financing with oneto six-month terms.
The primary use of the loans is expected to be for short-term working capital and view the partnership with the largest global e-commerce marketplace as quite strategic. Lending Club did not provide detail on the potential revenue impact, but noted that there are “millions” of U.S. business buyers on Alibaba.com.
This announcement comes on the heels of the pilot program in partnership with Google (NASDAQ:GOOGL) announced on January 15, through which Lending Club will facilitate and service loans Google makes to its growing business partners.
Shares of Lending Club closed today at $20.29. GTE has a 1-year high of $29.29 and a 1-year low of $18.30. The stock’s 50-day moving average is $22.80 and its 200-day moving average is $4.90.
LendingClub Corporation operates as an online marketplace that facilitates loans to consumers and businesses in the United States.