Prime Consumer Notes are fixed-income investments that generate monthly cash flow in the form of payments of principal and interest. Generally, investors choose to invest in hundreds or thousands of Notes to diversify and benefit from more consistent performance. Notes are graded A1 through G5 and carry an interest rate commensurate with their risks, so you can build a portfolio that fits your investment objectives.
Consumer Notes allow investors, individuals and institutions, to capture the spread on consumer debt. Lending Club offers loans to creditworthy borrowers looking to fund their business or pay off their high-interest credit cards. Many of these borrowers are simply looking for an alternative when their bank couldn't -- or wouldn't -- extend credit. Their loss, your gain!
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