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

Shift in Lending to Small Businesses

According to a June 2 report in Business Week, the SBA is seeing a shift in lending patterns to small businesses. While traditional business loans are down, credit cards are becoming more available to small businesses. This is particularly good news for home-based and other micro businesses whose credit needs are relatively small. See the full article here.

Will Limkemann
www.siqualtd.com