• LendingClub has an interesting, all-weather business model that produces several synergies.
• During difficult times, it can use the information generated by its marketplace to seek out the best risk/reward borrowers for its own underwriting business.
• There is a large amount of operating leverage in the business model as the one-time fees from the marketplace roughly cover the OpEx.
• The shares seem pretty cheap to us, anticipating a substantial deterioration of credit quality that might not happen.
• Looking for more investing ideas like this one? Get them exclusively at SHU Growth Portfolio. Learn More »

LendingClub Has A Killer Business Model