Prosper.com-Check it out!

[KKoher]

I just wanted to let everyone know about this great site I found. It would be great for people looking for a business loan, or for those looking to invest....Here is some info. from thier website.

Prosper, America's first people-to-people lending marketplace, was created to make consumer lending more financially and socially rewarding for everyone.

The way Prosper works is intuitive to people who have used an online auction. Instead of listing and bidding on items, people list and bid on loans using Prosper's online auction platform.

People who want to lend set the minimum interest rate they are willing to earn and bid in increments of $50 to $25,000 on loan listings they select. People who lend can easily diversify using "standing orders", which automatically make many small loans to different borrowers.

Borrowers create loan listings for up to $25,000 and set the maximum rate they are willing to pay a lender. Then the auction begins as people who lend bid down the interest rate. Once the auction ends, Prosper takes the bids with the lowest rates and combines them into one simple loan. Prosper handles all on-going loan administration tasks including loan repayment and collections on behalf of the matched borrower and lenders.

Prosper's rigid privacy policy reflects co-founder and Chief Executive Officer Chris Larsen's longstanding history as an advocate of stringent consumer financial privacy protection laws and practices. Prosper does not sell, rent, or share members' personal information with third party marketers. Prosper members are in control of how much personal information—if any—is revealed on the website and with other members. Prosper's security and identity verification systems are state of the art, and consistent with those used by banks, brokerages and institutional creditors.

Prosper generates revenue by collecting a one-time 1% to 3% fee on funded loans from borrowers, and assessing a 0% to 1% per annum loan servicing fee to lenders. Backed by Accel Partners, Benchmark Capital, DAG Ventures, Fidelity Ventures, Meritech Capital Partners, and Omidyar Network, Prosper has raised $40 million. Prosper's marketplace platform is patent pending.

[BusinessAdviser]

Do you work for Prosper? Or get any kind of compensation for advertising for them? I'm not being a wise acre, just curious.

[KKoher]

Nope...I have been looking for a way to get funding for my store and came across them. I haven't tried them out yet, but I registered today, and hopefully will be getting funding soon. I just thought it was a really great idea.

[tazman9r]

How do they fund there loans? Can you register to be an investor? I can't put up $25,000, but I might be willing to earn off of a $50 investment.

[stand856]

Re-post, search topics first prior to posting them

[JLeezer]

I thought I'd add my limited amount of experience with Prosper to this thread. I've actually been a Lender on Prosper for about a year now. Overall, I've had fairly good success with the Borrowers. But recently, as a Lender, I haven't been able to find Borrowers that look promising as an investment.

See, more and more, the Borrowers are posting listings such as this (actual listing that is 100% funded):

Purpose of loan:
This loan will be used to consolidate debts that the business owes.
My financial situation:
I am a good candidate for this loan because the company has been open for 11 years.We just completed the best January in company history with an increase of 73% over last year's sales. Even in a down economy, we have been able to stay steady because we have established ourselves as a quality company with good employees and a solid reputation.

Monthly net income: $3000 plus bonuses

Monthly expenses:
Housing: $ 0
Insurance: $ 125
Car expenses: $0
Utilities: $ 150
Phone, cable, internet: $155
Food, entertainment: $ 200
Clothing, household expenses $ 150
Credit cards and other loans: $125
Other expenses: $ 400(daycare)

-- Back to me now...

While that is all fine and dandy, what is to say any of it is true? Better yet, there is absolutely NO financial information to explain how this loan is going to help the business grow or even be repaid. It doesn't even explain what the business does.

In my opinion, I can't justify investing in something I don't understand. I guess a lot of people invest in stocks in the same manner, but I don't. I have a few stocks that I thoroughly understand. Other than them, I invest in myself, my wife, our real estate holdings, and our businesses.

The fact that this loan is 100% funding with zero substantial evidence to allow a reasonable person to expect they will be repaid is preposterous. Prosper started out strong, but investors have become way too lax in their criteria and Borrowers have become way too lazy in their rationalizations and justifications.

Think twice before investing here. You can find great people to invest in on Prosper, but it takes a lot of digging. If you're looking for funds, though, Prosper might just be a gold mine for you as the criteria for getting a loan is pretty darn low.

[Aletheides]

Ya, we have beat the crap out of the Prosper topic here, but it still doesn't change the fact that it's the coolest thing since sliced bread.

[acuravo]

I've been both a lender and an investor on Prosper and I honestly love the idea. I'd much rather pay someone 10-12% interest than put business expenses (furniture, computers, etc.) on a credit card and pay the bank.