Comments on: New Investment Opportunity? Person to Person Lending http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/ Bridging the gap between saving money and investing Tue, 16 Mar 2010 04:36:23 -0700 http://wordpress.org/?v=2.8 hourly 1 By: PeerLend http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/comment-page-1/#comment-208456 PeerLend Thu, 10 Jan 2008 21:13:07 +0000 http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/#comment-208456 A minor update on this space: Prosper has originated over $100mm in loans, with over 500k+ members, and parked about $20mm more in VC not long ago. Zopa (who, at the time of this article, operated only in the UK) has launched a US version in partnership with six US credit unions. The model is not quite "P2P", as lenders are asked to purchase a guaranteed CD (~5%), the purchase proceeds of which Zopa will lend out to borrowers (presumably pocketing the spread). LendingClub.com, a completely new player, launched via the FaceBook social networking platform, and has just recently opened to the non-facebook public. Their platform is P2P, but it differs from Prosper's more laissez faire implementation in that LendingClub underwrites the loans, bucketing them into different grades at different rates - doing away with the typical auction process. Two more market entrants are apparently ramping up for launch, as well: GlobeFunder & Loanio. The former is in limited testing in a handful of states, the latter in stealth mode, but supposedly scheduled for launch sometime in January '08. In addition to the US for-profit players, there are also are several non-US focused, more "social finance" oriented, services: Kiva.org has seen continued success (especially in getting its CEO into AmEx commercials!), and eBay has made a recent investment in MicroPlace.com, a social-microlending venture that allows Westerners to invest into individual borrowers in developing nations. A minor update on this space:

Prosper has originated over $100mm in loans, with over 500k+ members, and parked about $20mm more in VC not long ago.

Zopa (who, at the time of this article, operated only in the UK) has launched a US version in partnership with six US credit unions. The model is not quite “P2P”, as lenders are asked to purchase a guaranteed CD (~5%), the purchase proceeds of which Zopa will lend out to borrowers (presumably pocketing the spread).

LendingClub.com, a completely new player, launched via the FaceBook social networking platform, and has just recently opened to the non-facebook public. Their platform is P2P, but it differs from Prosper’s more laissez faire implementation in that LendingClub underwrites the loans, bucketing them into different grades at different rates – doing away with the typical auction process.

Two more market entrants are apparently ramping up for launch, as well: GlobeFunder & Loanio. The former is in limited testing in a handful of states, the latter in stealth mode, but supposedly scheduled for launch sometime in January ‘08.

In addition to the US for-profit players, there are also are several non-US focused, more “social finance” oriented, services: Kiva.org has seen continued success (especially in getting its CEO into AmEx commercials!), and eBay has made a recent investment in MicroPlace.com, a social-microlending venture that allows Westerners to invest into individual borrowers in developing nations.

]]> By: Dan http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/comment-page-1/#comment-54087 Dan Mon, 04 Jun 2007 00:46:53 +0000 http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/#comment-54087 Greetings, I’ve been using prosper for a few months now and I’m quite pleased with the results. I have over 20 loans out with an avg rate of over 13%. All loans that have existed for a few weeks are current with their payments, so my true ROI at this point is over 13%; great diversification tool with this market that's on fire and could crash at any moment (esp. internationals). Good luck! Greetings, I’ve been using prosper for a few months now and I’m quite pleased with the results. I have over 20 loans out with an avg rate of over 13%. All loans that have existed for a few weeks are current with their payments, so my true ROI at this point is over 13%; great diversification tool with this market that’s on fire and could crash at any moment (esp. internationals). Good luck!

]]> By: James http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/comment-page-1/#comment-3485 James Tue, 23 May 2006 14:15:15 +0000 http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/#comment-3485 Greetings! Thanks for your detailed info on prosper.com. My fiancee have decided to try it out and will check your website periodically for updates! -James Greetings!

Thanks for your detailed info on prosper.com. My fiancee have decided to try it out and will check your website periodically for updates!

-James

]]> By: Andrew http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/comment-page-1/#comment-814 Andrew Thu, 16 Feb 2006 19:56:40 +0000 http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/#comment-814 Hi Jeffrey, Andrew from Prosper here. There is actually no $1000 minimum for lending on Prosper - there is a misprint in our current lender agreement, but this is a relic of a prior strategy, and is being removed later this week. Just thought I should clear that up. Thanks for the writeup. Hi Jeffrey,

Andrew from Prosper here. There is actually no $1000 minimum for lending on Prosper – there is a misprint in our current lender agreement, but this is a relic of a prior strategy, and is being removed later this week. Just thought I should clear that up. Thanks for the writeup.

]]> By: Carnival of the Capitalists » The Small Business Buzz http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/comment-page-1/#comment-778 Carnival of the Capitalists » The Small Business Buzz Tue, 14 Feb 2006 05:50:05 +0000 http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/#comment-778 [...] • Copyright Tutorial • New Investment Opportunity? Person to Person Lending • Is Sweden Moving From Socialism to Capitalism? • Mortgage Pre-Payments at Slowest Pace Since 2003 • Effective Interest • Business problems: Seek them out [...] [...] • Copyright Tutorial • New Investment Opportunity? Person to Person Lending • Is Sweden Moving From Socialism to Capitalism? • Mortgage Pre-Payments at Slowest Pace Since 2003 • Effective Interest • Business problems: Seek them out [...]

]]> By: Financial Rounds http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/comment-page-1/#comment-773 Financial Rounds Mon, 13 Feb 2006 17:58:17 +0000 http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/#comment-773 <strong>This Week's Carnival Of Investing</strong> This week's Carnival of Investing is up at Trader Mike's. My picks of the week include pieces from Financial Revolution, Pacesetter Mortgage, Personal Finance, Retire At 30, and Jose at Anes Weblog: This Week’s Carnival Of Investing

This week’s Carnival of Investing is up at Trader Mike’s. My picks of the week include pieces from Financial Revolution, Pacesetter Mortgage, Personal Finance, Retire At 30, and Jose at Anes Weblog:

]]> By: Trader Mike http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/comment-page-1/#comment-771 Trader Mike Mon, 13 Feb 2006 13:50:31 +0000 http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/#comment-771 <strong>Carnival of Investing, Issue 9</strong> It's carnival time! No, not that carnaval but the much more exciting 9th edition of the Carnival of Investing. For the uninitiated, this carnival consists of recent articles about investing from the blogosphere. Without further ado, here are this week... Carnival of Investing, Issue 9

It’s carnival time! No, not that carnaval but the much more exciting 9th edition of the Carnival of Investing. For the uninitiated, this carnival consists of recent articles about investing from the blogosphere. Without further ado, here are this week…

]]> By: Jeff http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/comment-page-1/#comment-765 Jeff Sun, 12 Feb 2006 22:48:19 +0000 http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/#comment-765 Lenders are working their own little miracles there at Prosper and making a difference! Thanks for the info pfadvice! The risk is no different than placing it in a mutual fund and letting them pillage you with fees and uncontrollable risk exposures. I, personally, would like to be able to select my risk tolerance and earn a predictable rate of return... Prosper might achieve that for me. -Jeff Lenders are working their own little miracles there at Prosper and making a difference! Thanks for the info pfadvice! The risk is no different than placing it in a mutual fund and letting them pillage you with fees and uncontrollable risk exposures. I, personally, would like to be able to select my risk tolerance and earn a predictable rate of return… Prosper might achieve that for me.

-Jeff

]]> By: Loi Tran http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/comment-page-1/#comment-761 Loi Tran Fri, 10 Feb 2006 17:42:23 +0000 http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/#comment-761 I think the risks are too high for the lenders. I think the risks are too high for the lenders.

]]> By: Caitlin http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/comment-page-1/#comment-754 Caitlin Thu, 09 Feb 2006 16:16:04 +0000 http://www.pfadvice.com/2006/02/07/new-investment-opportunity-person-to-person-lending/#comment-754 Hm. I don't really see how loaning money to folks so they can buy new clothes and mod their cars will lead them to "prosperity"...just seems like a disconnect between the name of the company and how it's being used in it's infancy. Hm. I don’t really see how loaning money to folks so they can buy new clothes and mod their cars will lead them to “prosperity”…just seems like a disconnect between the name of the company and how it’s being used in it’s infancy.

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