Lending Club works with WebBank, Member FDIC, that originates and issues Borrower loans. WebBank provides capital to fund the loans and it holds each newly issued loan and collects interest on it for the 2 business days (or up to five calendar days) following the date on which the loan is issued. Any Notes corresponding to the loan are issued to investors after the hold period is complete. Accordingly, depending on the day of the week that the loan is issued by WebBank, there may be a 2-5 day gap between loan issuance and Note issuance.
As a result of the holding period and retention by WebBank of the interest earned over that period, investors in Notes will hold each Note for less than one month before the first payment is due, making the first payment due to investors slightly smaller than monthly payments due subsequently. Please note that the holding period only affects the interest due in the first period; it does not affect the interest due in any subsequent period or the principal due in any period. It does not affect the timing of any payment due date.