Will Limkemann
Business Advisor
The Constant Entrepreneur:
Advice for Running a Productive Business
Peer-to-Peer Lending
An alternative financing source that has gained traction over the past few years is peer-to-peer lending facilitated by on-line site such as www.lendingclub.com, www.prosper.com, and www.peerlendingnetwork.com. Small businesses hit with high credit card interest rates and which can’t find banks willing to lend money are increasingly funding their needs with low-cost peer-to-peer loans. Investors concerned about the volatile stock market and low interest rates are attracted by returns offered by peer-to-peer lending.
Peer-to-peer lending web sites are on-line market-places that bring together borrowers and lenders, often pooling the investments of many vendors over the loans of multiple borrowers. In some cases lenders can actually bid on individual loan requests.
According to a September Washington Post article, peer-to-peer loans will reach $5.8 billion in 2010, almost doubling the 2009 loan values.
Will Limkemann
Siqua Group Limited
December 11th, 2009 at 3:35 am
[...] from the funding they need. As Will Limkemann explained not long ago in his Geniocity.com blog, peer-to-peer lending now offers entrepreneurs an easier, online path to low-cost business loans than through [...]