North Texas Objectivist Society (NTOS) Message Board › Peer to Peer Lending - what a CAPITAList IDEA!!
I have a good friend up north that is working on starting her own business. She is lacking capital, and is finding it a bit tough to get a loan through normal channels. Today she sent me an email, asking for an endorsement on some site called www.prosper.com. Well, since she is a stand up lady, and has succeeded at anything I have seen her set out on, I of course gave her a character endorsement. And then I poked around the site to see what it was all about.
It is a "peer to peer" lending site. Individuals (or institutional lenders) can give out loans to others. If they default, the company will contact a collection agency - not much different than what would normally happens. A borrower would put out their bid request, and lenders would bid on it.
An interesting answer to the credit crunch out there. To me, it would seem very helpful to people who need perhaps small loans (under 10 or 5K) but either cannot get them through a bank right now.
Anyhoo - I thought it was a pretty cool site, so figured I would share.
Edited to add: here is the FAQ Link - http://www.prosper.co...
The site/company was started by the fellow that started E-loan several years ago.
Edited by Sherry on Jun 19, 2008 10:11 PM
I Love that idea! I know when we bought our liquor store it was not because we were particularly knowledgeable about liquor, nor was there any great desire to be the most sought after couple at party-time. It was all we could afford, and even though we have excellent credit no one would loan to us conventionally on a business unless we had been in that industry XX years and had the collateral to support whatever we wanted to buy. We were turned down 3 times for small business loans on another business, so we just took out a loan against our house, went to the broker and said "This is how much money we have... what can we buy?"
Not really the best way to undertake a business venture, but thankfully it is working out well for us.