[Editor’s note: This is the longest post I have ever done but I wanted to make this a comprehensive review of the Lending Club trading platform. I have included lots of sub-headings for easy skimming if you don’t have time to read the entire article.]
When Lending Club launched in 2007 there was no trading platform. There was no way to sell notes; once you invested in a loan you had to hold that note to maturity.
But then came the Lending Club quiet period in 2008. When they reopened in October 2008 after they had completed their SEC registration there were several changes to their platform. The investor notes were now considered securities, in a similar way that common stock is considered a security, so they could now be traded on a secondary market.
Selling Lending Club Notes on FOLIOfn
Lending Club chose FOLIOfn to manage their trading platform. This is the same company that manages Prosper’s trading platform but the program is run separately and you need to open up separate accounts on FOLIOfn for each platform. It is a very simple process to sign up for a trading account, it only takes a couple of minutes. Once signed up every time you click on the Trading Account link from your Lending Club account you will be taken to your FOLIOfn account. [Read more…]