Tuesday, January 29, 2008

Commentary on current market rates

There have been some remarkable changes happening recently in the economy. Most interesting for me has been to watch what is happening to interest rates in the bond market. Consider it in these terms:

Let's say that you are a lender looking for a place to put your money. An organization comes to you and wants a 2 year loan. They have a lot of debt (about four to five times their annual income), but they have a perfect track record of paying back previous loans. They offer you 2.18% interest in exchange for a 2 year loan. You want to make a higher return? Well, in exchange for locking up your money for a longer period of time, they offer you a 2.78% interest on a 5 year note, 3.58% interest on a 10 year note, or 4.29% on a 30 year note.

Those are the current yields for government treasury bonds. Investors with deep pockets are currently locking up their money for 10 years for a 3.58% return. Inflation is currently sitting at 4.08%, and few analysts are expecting that to get better any time soon. It seems incredible to me that these investors are willing to lock up their money for 10 or even 30 years at rates which are unlikely to produce a positive return after accounting for inflation.

So, why are investors sinking billions of dollars of investment money into notes with returns that won't even keep pace with the rate of inflation? The answer is that economic uncertainty and market turmoil have pushed people into a flight toward safer investments. A return of zero after inflation is better than loosing your shirt.

So, what are you to do as an investor? Well, I would argue that blindly following the rest of the market is not a winning strategy. Often investors act with a herd mentality and push investments to unreasonable extremes. This explains the frequent bubble - crash cycles in various markets. Eventually, however, investments return to a long term rate of return based on their underlying value. This economic principle is known as regression to the mean, and it holds true in every aspect of investing. Putting money into bond funds at these low rates seems unlikely to be a long term winning strategy. When interest rates do go back up the value of these bond funds will plummet adding additional insult to the already low rates of return.

At times like this it is beneficial to have some money on the sidelines. That way, when one market gets way out of whack you can invest at bargain prices with the hope that, following the principle of regression to the mean, you will make money as the market corrects itself. So, as the real estate and stock markets fall there will be the potential for money to be made by those that have some money on the sidelines. Think of it in terms of the S&L crisis of the 1980s or the Great Depression. If you invested then you would have bought at discount prices right before real estate and stock market booms. There will be lots of short term volatility in the coming months, but patient disciplined long term investors can benefit from the market discount the volatility provides.

Monday, January 28, 2008

Lending Club statistics site published by Eric's Credit Community

Eric's Credit Community just published the first Lending Club statistics analysis site. Current charts include:

The information is updated weekly when Lending Club updates their statistics page.

Lending Club also recently made some great updates to their site if you haven't noticed them yet.

4 tips for Prosper lenders

Amy Hoak, who wrote 4 tips for Prosper borrowers for the Wall Street Journal, now has 4 tips for Prosper lenders. Here are Amy's four tips with my comments.
  • Understand the model - Which one - Prosper, Lending Club, Zopa, or Virgin Money?
  • Listen to the stories but don't ignore risk - I recommend Matt's article about risk management for a better understanding of this advice.
  • Diversify risk - Few follow this advice. We found most Prosper lenders do not diversify. In fact, a full 70% have less than 20 loans.
  • Start small - You often hear veteran lenders wish they started smaller. For example, Rateladder who runs several p2p lending sites and is the editor of the official Prosper blog said, "I have been lending since July 2006. I, like many, made some early mistakes in my lending strategy. Even though I was bidding on the better credit grades I didn’t pay close enough attention to other extended credit parameters… I continually adjust my bidding strategy and expect that my ROI (as estimated by both sites mentioned above) will continue to show improvement in the future."

Sunday, January 27, 2008

'Snarky' blogger critiques Prosper borrowers

Before Prosper deleted their forums (archive available at prosperreport.com) lenders would often critique borrowers and share information in an effort to avoid borrowers who were likely to default. Sometimes those discussions would turn up quite a bit of scandal - the most notorious was Jessica Wolcott. Now these discussions have moved to other web properties, mostly propsers.org and various blogs.

One of these blogs belongs to Kyle M. Stevens. He says he started the blog to "poke fun at some of the Prosper listings." His blog is less than two weeks old but it has already captured the attention of MSN's money blog. Donna Freedman writes, "It was just a matter of time before some snarky blogger began commenting on the applications for loans at Prosper.com, the peer-to-peer lending site. If you apply for a loan at Prosper and your credit history isn't great, you might show up on Prosper lender Kyle M. Stephens' radar screen. You'd better have a thick skin or a generous sense of humor."

WSJ: 4 tips for Prosper borrowers

The Wall Street Journal discusses peer to peer lending in an article published this weekend, Borrowing from Peers. The differences among Prosper, Zopa, Lending Club and Virgin Money are briefly discussed and then the author provides four tips for prospective borrowers.
  • Be realistic. It's important to know from the start how attractive a borrower you are and to set realistic interest-rate expectations, says Jean M. Garascia, associate analyst for Javelin Strategy & Research. The first time Ms. Rizzo asked for a loan on Prosper, for example, it didn't get funded because the proposed rate was too low for any lender to accept the risk.
  • Tell your story. Part of the intrigue of peer-to-peer sites is that lenders get to know who they are funding. In some models, explaining why the money is needed and giving some information about yourself can help an investor relate to your story -- and decide to lend to you.
  • Be patient. Unless a borrower is seeking a loan from an acquaintance, it might take time to get funded. "The demand for loans is much higher than the actual capital available," Mr. Garascia says. "Maybe you'll get funded in a day...or it may take longer than you were expecting."
  • Understand the terms. The loan's interest rate is important, but pay attention to the terms as well. Unlike credit-card debt, this loan must be paid back in a defined period. The consequences of defaulting on a peer-to-peer loan are the same for any loan -- often a ding to the borrower's credit history.

Globefunder was not mentioned in the WSJ article, but they do appear today in an article in Michigan's Mlive.com - Kalamazoo-based Online Lender Expands into Michigan. Here's an excerpt:

"Globefunder, the Kalamazoo-based peer-to-peer online lending company that was launched last October, is now licensed to do consumer lending in Michigan. The business, started by two former Greenleaf Trust executives, Brian Mullally and John Schoolman, and Ben Decio, chief of staff for an Elkhart, Ind.-based maker of recreational vehicles and modular housing, is based at 200 E. Michigan Ave. in downtown Kalamazoo. It was already licensed and operating in 13 states -- Florida, Texas, Georgia, Hawaii, Indiana, Missouri, Louisiana, New Jersey, New Mexico, New York, Oregon, Utah and Wyoming -- before clearing regulatory hurdles and adding Michigan this past week. At www.globefunder.com, the business uses proprietary technology to offer loans from $2,500 to $25,000 to borrowers looking for reduced-interest-rate loans. It offers investors an opportunity to reap more substantial returns on typically short-term transactions. Peer-to-peer online lending has been drawing a lot of interest because industry observers say it has the potential to allow anyone with a computer to apply for and be considered for loans from people who have money to invest."

Peer to peer lending is also mentioned today in an article about recent stock market fluctuations at the UK Times Online. "Another offbeat option attracting serious consideration is Zopa, the US-backed website that brings lenders and borrowers together with a much smaller cut for the middleman," writes William Kay. Read the rest of the article at the UK Times Online.

Saturday, January 26, 2008

Prosper selects AmSher as collection agency

Prosper has added a new collection agency – AmSher. AmSher is a privately held collection and receivables company licensed to conduct business in all fifty states. The firm started in 1939 as a credit-clothing store, later expanded into the credit furniture business and, in 1986, started collections. AmSher is headquartered in Birmingham, Alabama with a second collections location in Tulsa.

You can get some idea of how AmSher will handle collections from the Eight Steps for Effective Collection Calls, an interview with co-CEO Martin Sher.

Prosper lenders can choose which collection agency they want to use. The other options are Firstsource and Penncro. AmSher charges a fee of 17% of the funds recovered while FirstSource and Penncro charge 15% of funds recovered in the first month and a decreasing amount thereafter unless the payment is bringing the account current. You can view historical collection data and change your default collection agency at Prosper.

Most Prosper lenders use Penncro. Penncro has brought 16% of E and HR loans current, 17% of B-D loans current and 19.4% of A or AA loans current.

Sunday, January 20, 2008

Brip Brap hosts second P2P lending carnival

Brip Brap just published the second P2P lending carnival. Here are the featured articles:
Earlier this month, Lazy Man and Money initiated the P2P lending carnival series. It's good to see the blogging community work together like this to share P2P lending information. Thanks to everyone who submitted an article and Brip Brap for hosting!

Thursday, January 17, 2008

18 days left for 5% Lending Club bonus

Patrick Gannon, Lending Club's Senior Vice President, says that Lending Club's growth has been "fantastic" over the past month and wants to increase publicity of their 5% bonus during the last 18 days of the program.

"With all of the growth in loans and loan requests," he writes, "we want to reach out as widely as possible to current and now prospective lenders with our special offer: Lending Club will give a 5% cash bonus to all lenders who lend $5,000 or more between December 14, 2007 and February 3, 2008. This bonus can be used to lend or can be withdrawn to your linked checking account." Although there are no special sign-ups needed to participate in this program, if you want an additional $25-50 referral bonus you need to sign up through a referral link. Lending Club announced the accomplishment of the following milestones:
  • Lending Club has reached $6MM in issued loans, and have over $3MM of loans in funding today
  • The number of lenders has doubled in the last month
  • The next system release (due in the next few days) offers a new set of lender tools that makes lending and account management even easier and incorporates feedback from many in our lending community
We listed a few of the $3MM in loans with their interest rates in these previous blog posts:

Wednesday, January 16, 2008

Prosper to sue select delinquent borrowers

Some lenders have received emails announcing a new legal test collections effort by Prosper. Prosper will sue selected delinquent borrowers. "This test is designed to determine whether the viable threat of legal consequences will improve the repayment statistics for Prosper loans," according to the email. "[It] is an important step in creating that awareness of consequences." Rateladder has posted a full copy of the email he received.

A couple weeks ago Prosper announced that other borrowers also received letters as part of an 'Early Delinquency' letter series and "the results were good." Prosper reported, "in the three weeks after the letter was mailed 57% more recipients initiated a manual payment (41% vs 26%)."

In October Prosper hired Doug Fuller to lead a legal strategy with collections after facing criticism for being soft on delinquent borrowers. At the time he answered some questions about his history with suing borrowers.

Q: Do you have experience with suing people?

A: Oh yes. Between First Select and Credigy, I have been responsible for making the decision to sue more than 150,000 people. There are a lot of lawyers that can’t claim that number of suits in a lifetime.

Q: Well why don’t we just sue everybody?

A: The phrase “blood from a turnip” comes to mind. One of the ways that you can go broke in a big way is by suing people that will never be able to pay you at all. Simple math, it costs a lot of money to sue people.

Q: Okay, so you need to decide who to sue, then what?

A: Put quite simply, my philosophy is this – if you won’t pay, but can (or will in the future) be able to pay, I’m going to sue you. If I sue you I’m going to win.

Q: That sounds kind of arrogant, can you back it up?

A: Courts in seven states have recognized me as an expert at consumer debt litigation. At Credigy, if a case got really nasty, I would go testify live. I refuse to lose.

Q: Really? What’s your win/lose record?

A: In my last 18 months at Credigy, I testified live at 42 trials. My record was 41-1. By the way, I fired the law firm where we lost.

Q: What’s the toughest aspect of this type of lawsuit?

A: By and large, judges are comfortable if you can show them a signature on a piece of paper. The vast majority of judges grew up long before the internet and the passage of the “e-signature” bill during the Clinton administration. Sometimes you’ve got to spend a lot of time educating them.

Q: How do you do this?

A: I have been qualified as an “expert witness” in seven states on the subject of the electronic records of consumer lending transactions. There was a judge in Texas that had me on the stand for more than three hours – the majority of the time, the judge was quizzing me. Other than I missed the last flight home, I thought it was time well spent – he never questioned any of our requests for default judgment after that.

Tuesday, January 15, 2008

Prosper CEO calls 2007 transition from 'optimism to fear of imminent recession'

Chris Larsen, Chief Executive Officer and Co-founder of Prosper said, "2007 proved to be a pivotal year for US markets as we abruptly transitioned from optimism to fear of imminent recession." This remark matches statements made in earlier Prosper monthly lending reports such as September's "flight to safety" remarks. We have previously discussed what effect a recession might have on the Prosper marketplace here on PLR. This is the full text of Larsen's remarks in January's lending market survey.

"2007 proved to be a pivotal year for US markets as we abruptly transitioned from optimism to fear of imminent recession. Who could have predicted at the start of 2007 that the word 'subprime' would be voted the word of the year?

At Prosper, we also saw a dramatic switch in the prime versus subprime market with subprime declining from over 25% in 2006 to barely 5% currently. This change reflects both a changing external market as well as a maturing of the Prosper marketplace.

Obviously the subprime meltdown exposed much more risk in the subprime market in 2007 compared with a year earlier. Prosper’s performance data bore this out and has clearly moved people to safer ground or to fund those borrowers with a clear social capital benefit.

The silver lining has been more opportunity in the prime and near prime segments. As the credit crunch has unfolded, many traditional lenders have dramatically tightened or eliminated credit to even their best customers. For example, home equity, which until recently was referred to as Americans’ ATM, has been substantially limited by falling real estate prices and mortgage industry bankruptcies. Credit card offers have also been substantially reduced as defaults have spiked nearly 20%. Thus, while the environment was tougher in 2007, there is also much less competition for the best customers. This bodes well for people-to-people lending which can take up the slack from the seized-up capital markets.

The key focus for loan buyers will be choosing borrowers smartly and pricing adequately for risk. Prosper’s additions of Prosper-specific market risk data and Portfolio Plans were both major milestones in giving bidders the information they need to choose wisely. For borrowers, pricing their listings adequately, telling and explaining their story honestly, and involving friends and family to bid as a measure of social capital are great ways to increase the success of their auctions."

Saturday, January 12, 2008

Fynanz to tackle peer to peer student loan niche

Chirag Chaman left his position as CEO of KobeMail a year ago to build Fynanz, a peer to peer lending site for student loans. Fynanz describes their service as "an innovative marketplace where students can get one of the most competitive rates on private student loans. Students apply for a loan and it is funded by individual lenders – friends, family, alumni and others who believe what we believe – Education is the Best Investment!" Chaman took some time out of their aggressive schedule to talk to PLR about the service they will be launching soon.

What is your background and what inspired Fynanz?

I graduated with a double major in Mathematics and Computer Science, but was always drawn towards business and finance. I started off my career as a software engineer working for Oracle in the Bay Area, and it did not take long to realize that I would be happier on Wall Street. I moved to New York and worked for Salomon Smith Barney/Citigroup in their Investment Banking Division focusing on financial institutions. These institutions were in the business of making student loans, and my job was to securitize these loans (sell bonds to investors against them). The institutions we worked with were primarily making loans under the Federal Family Education Loan Program (FFELP). Private or alternative student loans were not very common back then. Business was always good for our group regardless of how Wall Street did. After all, nearly every student took out loans and education was only getting more and more expensive each year. Coming from a technology background, I was a little bothered by the lack of technological and procedural advancements over the years in this industry. Frankly, I don't blame the financial institutions, the schools, the federal/state agencies, or anyone else, as I believe they all have the best interest of the student at heart. There are a lot of moving parts to the Federal loan program which made this process hard to change. What did bother me a lot was when private loans became more and more prominent, there was little done to improve the process. The institutions simply rolled out the new private loan train on the "old FFELP tracks". And why not, it made it virtually free to get the process started. It might have made good business sense at that time, but it did not bring in savings to the students and today when Private loans are more and more in demand, this lack of initial investment to improve the process means students are not getting the best deal. No! I did not do anything about it back then. I caught the Internet bug in Web 1.0 days and started a venture backed company. It was not until 2006 when I saw an article about Zopa, did I start to connect the dots. So here I am, 10 years later back in the Student Loan industry.

Where did you get the name for Fynanz?

We initially called this "Project BlueNote" and starting asking students in college and recent grads who they have their student loans from. Would you believe it if I told you less than 20% actually knew who their lender was? When we asked them what razor they use or who makes their cell phone, over 90% knew the answer. We realized there was a big branding opportunity, but for it to work, we had to come up with a name that students would relate to. Hence we went back to them with a few ideas. Amongst us In the office and a few parents liked conservative names with "Education" , "Academic" or "Lending" in the name as it portrayed experience & trust, but it was nixed by students (our primary target). I can clearly remember a guy from Hunter college telling me with a look on his face as if I was an idiot - "Do you really think I'll put THAT name on my facebook?" One day a friend, who was a recent grad herself and was helping us with student surveys sent me a text referring to the company as "fynanz idea". Soon a couple more used it and it stuck! (Apparently, thumb-typing Fynanz is easier than Finance as the keys are closer)

How long have you been working on the project?

Initially we thought it would take us 6-8 months. We soon realized that putting "new train tracks" in place is not an easy task. It took us about 8 months to plan the process and understand the legalities. In late 2006 we stared the planning phase -- so just over a year.

Tell us about the team. How did you bring everyone together? And who is responsible for those cool drawings on the site?

Okay, this is by far the most important aspect about any company. Fynanz will be my third venture and looking back I can say the times it worked and the times it did not, had little to do with the idea and more to do with the people who executed the idea. I am fortunate to have a team that has known each other a few years and work extremely well together. Everyone checks their egos at the door on the way in and goes about their business. In a startup you're working 12-14 hours a day very closely with people and it not always easy. I cannot stress how important team spirit is -- A team comprised of 5 average people will out-execute 10 very bright individuals every time! Drawings may not be all original, but modified to suit our needs. The graphic design was done by the fine folks at Design'N Print.

You encourage students to exhaust all federal loan options before using your service? Do you think that will hurt business?

It depends on what our business is and what we believe in. We're in the business of making sure students get a competitive student loan and we believe that Education is the best investment! If students can't afford to go to school, they are not making this investment in themselves. So, while it may see that sending students towards Federal loans is bad for our business, it's actually good for our business over the long term. See it this way:- Federal loans reduce the overall burden for the student as their combined (Private and Federal loan) interest expense will be a lower. More students can afford to go to school and get jobs...jobs help borrowers to pay off their loans, reducing the default rate on student loans...thereby making these loans a good investment for lenders as well. More lenders means competition and a lower interest rate for the student. Similarly, Fynanz will advocate only taking out what you need right now and will be putting checks and balances in place to ensure that a student is not over-extending. Part of the reason we are in the current credit crisis is because a few mortgage lenders made it easier for borrowers to over-extend. Might have been a good short-term strategy which hurt them (and a whole lot of others) in the end.

How will Fynanz be different than Prosper, LendingClub and other P2P lending sites?

Do we need to be different? I see us all as retail stores, with a slight difference in what we have on our shelves. Our focus is just student loans -- which is a very different loan product. Our borrowers are students looking to pay their education expenses. If they wanted money to pay-off their credit card or to take a spring-break trip, we just might send them Prosper's way. However, the big difference lies in the lenders of our community. We expect the goal of our lenders not to get the maximum interest from a loan, but balance an attractive return with the satisfaction of knowing that they are building a student's future.

What have been your biggest challenges as you prepare to launch a new company?

In a startup, I don't think there is a biggest challenge. Most things will end up being a challenge and once it gets resolved you realize "Wow, that was simple to work through", and you're on to your next biggest challenge. It's only a challenge until you learn or come up with a creative way to overcome it, and 99% of the time you do. So I guess the biggest challenge has more to do with your mindset and attitude, and less to do with aptitude. That said, I think the real challenges are those that are outside your control, even if it's the simplest thing and you know the process. My biggest challenge right now is finding great Ruby on Rails engineers to join the team.

Is there anything else you would like to add?

Did I mention we're looking for Rails engineers? Oh, and a couple of business development and operations folks with student loan experience.

Update (3/21/2008): Fynanz has launched - Fynanz becomes the first P2P student loan marketplace

Sample Lending Club loans (earn 7.12% to 18.36% returns)

This week nearly 100 borrowers made it through Lending Club's hoops and are now looking for funding from lenders. As PLP pointed out, most of Lending Club borrowers are eliminated in the screening process. This is because they have a FICO lower than 640, a debt to income ratio higher than 30% or a current delinquency. All the following potential borrowers meet at least those minimum requirements. Jeff and Heather who blog about peer to peer lending on My Microfinance also have a loan in this week's listing. Like at least one other person, they are trying to refinance their Prosper loan through Lending Club.

Here are the borrowers added this week and the associated interest rate offered. Sign up and login to see the full loan details and borrower's credit profile. If you are a new lender there is currently a $25 referral bonus or $50 if you invest more than $1,000. There is also an additional 5% bonus for large lenders (over $4,000) and a recent interest .5% rate increase.

wedding loan
Recently accrued charges on my credit card due to preparation for a wedding that I cannot pay off immediately. Total charges are about $3800. I ussually carry a zero balance on my credit card but the expenses of the wedding made this rather impossible. (Ring, food, dress, accessories, etc.) I will use the money to pay off my credit card to avoid the high interest rate (11%). I would like to pay off the loan in 3 years or less. I want the monthly payments to be small enough so that making the payments would not be too taxing. ($100 - $150) Would like the option to prepay the loan without penalty.
Earn 7.75% and a $25 bonus

Personal Loan
Personal loan to pay off some overdue credit card bills, etc.......
Earn 12.36% and a $25 bonus

purchase work pickup truck
This loan would purchase a small pickup truck to use for my small but growing home repair business. I believe the pickup would allow me to bid on larger jobs, be more productive and thus provide me a better opportunity at a greater monthly income. Ive never been late or missed a payment on a credit card or personal/auto loan in my life.
Earn 11.09% and a $25 bonus

High Interest Credit Consolidation
Trying to further consolidate high interest college credit cards. Already reduced net interest by roughly 10% by refinancing through improved credit opportunities, but would like to reduce further.
Earn 8.38% and a $25 bonus

Consolidating debt
I would like a loan for $1500 to consolidate debt from medical expenses and credit card.
Earn 13.30% and a $25 bonus

Debt consolidation and new baby loan
Seek loan for debt consolidation from Holiday overspending. Loan will go towards paying off credit cards and other holiday related expenses.
Earn 12.04% and a $25 bonus

Paying for Grad School
I hope to use the money to consolidate two credit cards and in doing so free up enough monthly income to make monthly tuition payments.
Earn 7.75% and a $25 bonus

Rid the budget of 'Prosper'
Former lender and borrower at Prosper.com looking to refinance OUT of Prosper.com into a more fair and equitable situation with Lending Club lenders!
Earn 10.14% and a $25 bonus

Unexpected medical expenses
I need a surgery to help end my endo pain.
Earn 12.67% and a $25 bonus

Personal Loan
I would like to borrow $7,000 to consolidate some debt into one easy monthly payment. I am also seeking some extra money to get some dental work done. Thank you, Karen Kalata
Earn 7.75% and a $25 bonus

Looking to re-fi high interest cards
I am looking to re-fi high interest credit cards at a better rate. I've implemented my own debt re-payment acceleration program with the goal of having everything paid off in 3 years, but the interest rates on these two cards will cause it to be dragged out about a year longer than that. I'm already paying more on these cards than the payment on a three year fixed loan would be, so a loan at a substantially better rate would actually lower my payments.
Earn 10.78% and a $25 bonus

Pay down higher intererest credit card
I am a father with a new child - have mortgage, want to get rid of old card instead of having this debt over my head for 15 yrs.
Earn 10.78% and a $25 bonus

Payoff credit cards 2008
I am currently paying off my credit cards but would like to pay them off faster with a lower interest rate.
Earn 11.41% and a $25 bonus

tracey loan
I would like to consolidate my credit card to one payment. I have already gave lending tree my credit cards that I would like to consoildate. I really need your help.
Earn 12.99% and a $25 bonus

Personal Loan
To pay off Rooms to go loan with a higher interest rate
Earn 10.78% and a $25 bonus

Medical + Education
I recently graduated from college, and am planning on attending graduate school soon. However, shortly after I graduated I had to have a trip to the emergency room - with no insurance. So I have a $1500 hospital bill with no way to pay it back, and it will soon be going to collections. In addition, I am planning on applying to graduate school to become a teacher, but there are several tests I need to take as well as other expenses associated with starting graduate school that I can not afford (CSET, CBEST, etc.). The first use of this loan would be to pay off my medical bill so that it does not go to collections. Second, I would use the rest to get myself on my feet and get into graduate school.
Earn 13.30% and a $25 bonus

Credit card consolidation
I am a recent college graduate seeking to consolidate three credit cards used to get through school into one fixed term loan. Once consolidated I will close the accounts and live on a cash basis so I will be debt free at the end of the loan.
Earn 12.99% and a $25 bonus

school debt
Pay off higher intrest credit card debt accrued during college.
Earn 12.04% and a $25 bonus

Loan consolidation
I would like to consolidate my credit cards and lower the interest rate.
Earn 14.88% and a $25 bonus

Parents share for son's education
DOE says pay part of son's education
Earn 9.51% and a $25 bonus

Oil & Gas Investment
I need to finance the acquisition of two oil wells which are currently in production. The payback period is expected to be less than five years, but will have positive operating cash flows. The company can pledge the investment and royalty payments as security for the loan.
Earn 9.51% and a $25 bonus

New Business
I am in the process of becoming an independent trader/investor after 15 years in the financial services industry. The main reason for this decision to try a new endeavor is that it would hopefully give me more flexibility regarding in terms of my time so that I can spend more of it with my children. Some think I may be a little crazy to give up a relatively well paying job. But I wasn't making so much much money that not spending more time w/ the family was worthwhile to me in the long-run. Anyway, I still have a plan and it does involve some risk as trading/investing is obviously not an easy thing. It's something I've always wanted to try when I was younger but I think I now it's the right time to try it. While this loan will have no impact on my decision, it will help in terms of my funding. One of the biggest obstacles to be successful in trading independently is the mental stress of having to worry about funding. This would help a bit on this front.
Earn 10.14% and a $25 bonus

College Purposes
I need some extra money to help pay for school expenses like rent and the difference that I pay to the school per semester.
Earn 11.41% and a $25 bonus

Paying Off High Interest Credit Cards
I would like to pay off my high interest credit cards with a loan from LendingClub. This way I pay less in interest and the people here benefit as well. I LOVE this concept!
Earn 12.36% and a $25 bonus

Debt Consolidation
Basically I looking for a loan to consolidate all my credit card bills into one mothly payment. Also, this way I can quickly and easily eliminate this debt so that I mey be able to free up money for investing and/or other projects that I have in mind.
Earn 14.25% and a $25 bonus

Personal Loan for Expenses
Hello, I've been an attorney for about four years now. I decided to start out on my own. However, just to take care of some start up costs and personal expenses during this process, I'm in need of a loan.
Earn 10.14% and a $25 bonus

Loan Number One
My first loan to try and get out of credit card debt.
Earn 9.83% and a $25 bonus

debt consolidation loan
I want to consolidate my credit card and loan accounts to a more manageable monthly payment. Thanks for your consideration
Earn 10.46% and a $25 bonus

Planning a wedding and honeymoon
I would like to borrow $7200 to finance a wedding and a honeymoon. I also would like to furnish our new place without using assets that I currently own.
Earn 7.43% and a $25 bonus

Dental Expense Loan
I am in urgent need of dental work that I have put off while paying off other bills(including the $8,000.00, out of pocket, I paid for my childrens dental work). I know that my dental health is an important part of my physical health, I can't put this off any longer.
Earn 8.38% and a $25 bonus

Being financially proactive
Obtained a personal loan of $5000 date of loan 3/26/07 interest rate 19.99% Time 36 months present bal $3070 Would like to pay of loan and get better interest rate
Earn 10.14% and a $25 bonus

MY Loan
Needed to pay for unforseen credit card purchases.
Earn 10.46% and a $25 bonus

Want to consolidate debt that occured during college. I want to have it in one place and make one payment, have not been late on credit card payments in the past
Earn 16.15% and a $25 bonus

Debt Consolidation
I would like to get back on my feet after a rough couple of months helping out others and in turn putting myself in financial difficulty (helping my brother pay for school, etc.). I make a good enough amount of money to cover the loan in reasonable monthly payments because of holding down two jobs. The amount of $2,500 will help me get back on track with my monthly payments because right now I can't make them. Thank you.
Earn 12.67% and a $25 bonus

Get out of Debt
$5800 Parents $1600 Credit Card $600 Dentist
Earn 10.78% and a $25 bonus

My business is expanding and I need a trailer to store and transport tools and ladders. This loan is for the purpose of purchasing the trailer.
Earn 9.20% and a $25 bonus

consolidating bills covering myself and ex domestic partner. moving costs etc.
Earn 12.99% and a $25 bonus

This loan will be used for a wedding within the next year and a half.
Earn 12.67% and a $25 bonus

Refinancing Credit Cards
Trying to refinance credit card debt with a better rate, which is currently at 16%.
Earn 9.20% and a $25 bonus

personal loan
Need the money to pay off some debt
Earn 9.51% and a $25 bonus

Party Store
Expand size of my party store front.
Earn 11.72% and a $25 bonus

Consolidating higher interest loans
Earn 15.20% and a $25 bonus

i would like to pay off my high debts
i would like to see if i can save by paying off my credit cards and consolidate them.
Earn 14.57% and a $25 bonus

Divorce Loan
10,000 loan request to help with debt incurred due to divorce.
Earn 7.75% and a $25 bonus

Combination Loan
I am looking to combine various debts into one payment.
Earn 14.57% and a $25 bonus

This loan is going to help me pay my student loans.
Earn 10.14% and a $25 bonus

Paying for College
Need to pay for college, if paid in advance will decrease cost more than what I'd gain in tax savings.
Earn 9.20% and a $25 bonus

Consolidate debt
Looking to consolidate debt and pay for a condo assessment.
Earn 9.83% and a $25 bonus

Upgrade computer system
I am a dentist and I recently purchased my own office. I would like to upgrade my computer system. This will result in faster billing and increased productivity.
Earn 18.04% and a $25 bonus

Getting on the right path
I would like to use this loan to pay off a credit card. I am trying to fix my credit situation and get a fresh start. Your help would be greatly appreciated.
Earn 12.99% and a $25 bonus

surgery loan
I am going to have a double mastectomy with nipple grafts. I have waited my entire life to have this surgery done. I was going to take out a home equity loan, but I'm in the middle of a divorce and I will not continue to have home ownership. I am seeking a 3-5 year loan with an affordable rate.
Earn 8.07% and a $25 bonus

credit card consolidation
I will use the funds lent to me to pay off higher interest credit cards and to consolidate them. that way I can reliably make lower monthly payments, in which many will be made ahead of schedule.
Earn 10.46% and a $25 bonus

Credit Card Debt Consolidation
A friend of mine who is a "Lender" on the site invited me to join. I have maxed out my two credit cards (WaMu and Capital One). Though I pay twice the "minimum payment" every month, I am predictably getting charged ridiculous APR's that keep me from making a dent in the overall debt. I also have an overdraft "credit card" attached to my checking account at Wells Fargo, which ideally I would like to clear since the APR is also sky high. I have good credit, excellent references, and have a nominal "guaranteed income" every month in addition to my work income that ensures I can make payments toward a loan of this size. Happy to set up Automated Bill Pay, as well as provide any additional information requested. Best, Jesse M
Earn 12.04% and a $25 bonus

Debt Consolidation
Debt Consolidation
Earn 14.25% and a $25 bonus

Loan consolidation and personal expenses
Looking to pay off a Bank of America gold option loan, and to help with major purchases for home and room furnishings.
Earn 11.72% and a $25 bonus

Wanting Financial Freedom
This loan is needed to get me back to where I was not too long ago. A little less than a year ago I had ID theft in the amount of $9000.00. Even though I eventually got some of this back, everything snowballed and just created a complete mess for me. Had trouble paying even the most simple bills. This would help me close that chapter in my life where each day was a constant worry in terms of "I can't pay this and can't pay this and why did this happen"
Earn 13.30% and a $25 bonus

JK Loan
To consolidate few debts.
Earn 11.41% and a $25 bonus

Tax Liens
I would use this loan to purchase tax liens. I have been doing this for four years. 99.8% of the principle is returned with interest within 3 years. The other 0.2% may result in a foreclosure on the property.
Earn 10.14% and a $25 bonus

Earn 10.14% and a $25 bonus

Financing for business
I need a small injection of cash to take care of nagging businesses expenses.
Earn 10.46% and a $25 bonus

The loan is for auto repair
Earn 16.46% and a $25 bonus

Loan needed to consolidate current credit card and student loan bills.
Earn 12.04% and a $25 bonus

Consolidate Debt
Looking to consolidate debt
Earn 10.78% and a $25 bonus

10,000 to pay off credit cards
Earn 9.51% and a $25 bonus

...for considering this loan. I believe my 800+ credit score speaks for itself so let's start helping each other to help each other. Let me know if you have any questions,
Earn 7.12% and a $25 bonus

Audi loan
I need this loan in order to purchase a vehicle.
Earn 11.72% and a $25 bonus

Need capital to make adjustments
I Need money to have in reserve for when clients get more than two months behind. I am taking on bigger jobs and need to pay for expenses before I get payed. I have been using credit cards but I have found that this is hurting my credit when they stay maxed out. Preventing me from getting better rates and increasing my limits. My goal is to use this loan to have the money on hand instead of using credit cards. I also need to fix a couple trucks.
Earn 18.36% and a $25 bonus

Credit Debt Consolidation
A loan to consolidate and pay off existing credit accounts so that some of which may be closed and to improve my overall credit.
Earn 11.72% and a $25 bonus

Debt Consolidation
Debt Consolidation
Earn 8.38% and a $25 bonus

fix car
I was in an accident and need to make some repairs that insurance will not cover.
Earn 7.43% and a $25 bonus

Vincent Howe's Peronal Loan Request
I wish to borrow the requested loan amount in order to consolidate debt from medical expenses.
Earn 13.30% and a $25 bonus

Electric Car Promotion and Consolidation
My business has a unique electric car prototype that I have financed entirely on my own. We need additional capital to complete our business plan in order to attract larger financing. Some of this will come in business loans from banks. However, I have used some of my personal credit cards to finance the prototype and that has reduced my credit scores from their previous 750 plus levels, even though I have a perfect payment history and no negative information at all three credit bureaus. Part of this loan will be used to further reduce the credit card debt and part will be used to prepare for the aforementioned purposes. With the business plan, there will be larger funding from angel investors and venture capitalists. Our electric car is among the first, perhaps the very first all electric lithium ion battery powered luxury sedans. Early green technology adopters are currently accustomed to paying a luxury price for an economy car just because it is electric. Our car is available to be ordered right now as a luxury car for a luxury price. The prototype was created by converting a brand new off the dealer show room floor 2007 Acura TL. We can perform the same conversion again for interested buyers who want delivery in a few months. The venture capital financed versions of the car will be available from a production facility in a year of two. These will include luxury, economy and mid range cars powered by both lithium ion and lead acid batteries.
Earn 16.46% and a $25 bonus

Security Deposit
Need for security deposit on an apartment.
Earn 10.46% and a $25 bonus

Grand opening
I have opened my own importing and exporting company and am requesting funds to help my company grow. As a new company I have acquired many expenses in which your funding can greatly help me.
Earn 10.78% and a $25 bonus

Refi of Debt Consolidation Loan
A while ago I got a loan with the bank that I work for, which consolidated the credit card debt I incurred after buying supplies/appliances to improve my house. The purpose of this loan is to see if I can get a lower rate through Lending Club.
Earn 11.09% and a $25 bonus

Loan for wedding expenses
Earn 10.14% and a $25 bonus

Personal Loan~Pay off high interest cc's
I'd like to pay off some high interest credit cards. While I can afford the payments I have now, the interest rates and variable payment structure are both things I'd like to get rid of. This money will all go into current debt so my monthly expenditures will actually be less after I pay off the cards. Thanks!
Earn 11.72% and a $25 bonus

Electric Car Consolidation Part 2
This is my second listing for this business project. The project can use more funds in addition to the first listing for the same purposes. You can see more details at potentialdifferenceinc.com. My business has a unique electric car prototype that I have financed entirely on my own. We need additional capital to complete our business plan in order to attract larger financing. Some of this will come in business loans from banks. However, I have used some of my personal credit cards to finance the prototype and that has reduced my credit scores from their previous 750 plus levels, even though I have a perfect payment history and no negative information at all three credit bureaus. Part of this loan will be used to further reduce the credit card debt and part will be used to prepare for the aforementioned purposes. With the business plan, there will be larger funding from angel investors and venture capitalists. Our electric car is among the first, perhaps the very first all electric lithium ion battery powered luxury sedans. Early green technology adopters are currently accustomed to paying a luxury price for an economy car just because it is electric. Our car is available to be ordered right now as a luxury car for a luxury price. The prototype was created by converting a brand new off the dealer show room floor 2007 Acura TL. We can perform the same conversion again for interested buyers who want delivery in a few months. The venture capital financed versions of the car will be available from a production facility in a year of two. These will include luxury, economy and mid range cars powered by both lithium ion and lead acid batteries.
Earn 18.36% and a $25 bonus

Getting My Finances STRAIGHT!
I'm requesting a loan to pay off some high interest credit card debt that I currently have in order to be able to begin to save more money for a down payment on a house which I plan on purchasing in the next 2 years.
Earn 15.20% and a $25 bonus

12K loan, will pay back within 10 months
I have several high interest credit card balances and would like to pay them off all at once. I have NEVER missed a payment in my ENTIRE life on anything that was due. I would like a loan somewhere between 16K to 17K. I can pay it all back somewhere between 11 to 14 months. I am willing to pay interest up to 10%. Any help would be greatly appreciated. I just need to get this high interest debt off my back. I have worked for a union job for the back 1 1/2 years. It is virtually impossible for me to get fired unless I steal, which will definitely not happen. I don't pay rent, so I can afford to pay about 1400 dollars a month or whichever amount you perfer. The sooner the better. P.S. If you wish to know more info, please e-mail and I'll get back within the day's end. Thank you for your time.
Earn 9.51% and a $25 bonus

debt consolidate
Would like to consolidate bills.
Earn 12.67% and a $25 bonus

I have paid for most of the wedding expenses but this loan will pay for the photographer that my fiance was asking for. I will definitely pay this loan off in full before the 36 month projected period.
Earn 10.78% and a $25 bonus

House of My Dreams Awaits in Brasil
I am wanting to buy a house in brasil, and my credit is so-so, also haven't had credit established for a long period of time. I am new to the USA. I am wanting to have a house in brasil and someday here in USA also.
Earn 13.62% and a $25 bonus

jeff's loan
to consolidate my debt to pay off sooner than paying accounts individually
Earn 16.15% and a $25 bonus

Kiva to offer interest to lenders

Kiva has typically not been an investment option because they do not pay interest to lenders. They do charge interest but the money goes to cover their costs. According to an article in E-Commerce Times, Kiva plans on offering interest to lenders in the near future.

"Though Kiva members are donors, not lenders, borrowers are charged interest, which enables Kiva's local microfinance partners to cover their costs. Depending on the country, regulatory and economic situation, these can look quite high.

'The industry average is around 35 percent; our average is around 20 percent, but it really varies from organization to organization and country to country. In Mexico, there are tax considerations ... others [lending partners] include training services as well as the loan which increases the interest rates,' Ramsey explained.


What's next for Kiva? One thing on the slate is expanding its services to include loans and offering Kiva members the option of lending and earning an interest rate return though with local microfinance partners providing the loan contracts -- something it hopes to do in the next year.

'Kiva is regulated only as a 501c3 tax-exempt nonprofit, and so we do not allow our lenders to receive interest. In the future, when we offer interest rates, we will be looking to be regulated as a person-to-person lending Web site, not a bank or a securities broker/dealer. This is similar to the regulatory treatment of Prosper.com, Zopa.com and Myc4.com,' Kiva cofounder Matt Flannery explained."

You can read the rest of the article, Taking Internet Finance to the Next Level, Part 2: A Case Study, at E-Commerce Times. We previously reported on Part 1 of the article as well.

Thursday, January 10, 2008

P2P venture capital a viable niche?

BizzFlip published a thought provoking article where they proposed P2P lending for venture capital.

"With Peer to Peer Venture Capital (or maybe to be a little more accurate think of it as Peer to Peer Angel Money), a person would be giving money to (or investing in) a company, product, idea, etc. in hopes of making a large amount of money off of a percentage of the profits.

It seems intuitively that off the top there will be some obstacles to making P2P Venture Capital a reality. First off, how do you determine someone is credible and not a
Conman? That one seems like a relatively easy fix with certain qualifications needed to become a member. More importantly is that venture capital is a little bit different than loans. There are certain negotiations needed and what about non-disclosures? Then the legal terms will have to be laid out for each potential deal. I can anticipate that some variation of the P2P Venture Capital idea will sprout up in the next few months or years (if there aren’t any already that I haven’t heard of)."

TechDirt counters with this argument - Isn't P2P Venture Capital Just Going Public?

"As there appears to be a growing market for p2p lending services, that has some wondering if there's also a market for p2p venture capital as well. In p2p lending, a group of ordinary folks all team up to lend people money. The various players in the space have had somewhat mixed results so far, but there's a lot of attention. However, for most companies, getting access to capital involves options between taking out a loan (which needs to be paid back plus interest) or selling equity (usually to venture capitalists). In that case, the money comes from someone who takes some percentage of ownership and hopes to cash in not on the interest, but on the growth of the value of his or her shares. So, it might make sense to wonder whether the p2p lending companies might eventually move into p2p venture capital as well... except that we already have p2p venture capital: it's called the public equities markets. If you actually tried to do that with private companies, you'd quickly run into all sorts of trouble with the SEC, which is pretty strict in terms of regulating how a company goes about raising money in exchange for equity. In fact, there are many who believe that a startup may be toeing the SEC's line simply by saying that it's out raising venture money. So, for a variety of reasons, both regulatory and because public equities markets already are p2p venture capital offerings, it's hard to see there being a huge market for companies to get into offering p2p venture capital."

Will double fees reduce the number of borrowers on Prosper?

As was reported last week, Prosper increased origination fees for borrowers for new loans initiated after January 4th. Prosper announced it on their blog as a pricing change and a few blogs (including us) reported the change. For us it was largely overshadowed by the improvement in collections which Prosper also announced at the same time.

It wasn't until I read the article about the rate increase on Netbanker that I realized just how significant this rate increase is. Borrower origination fees have doubled. From Netbanker:

"As noted in our recent research report on the P2P lending market (here), the exchanges need to boost revenues to remain viable. Even with scale, a 1% borrower fee and 1% servicing fee just doesn't provide enough revenue with the relatively small loan sizes currently being funded.

For example, using Prosper's previous pricing on a typical $7,000 loan, it would earn about $130 in the first year, then another $50 for the remaining two years of the loan (see note 1), for a maximum of $230 in lifetime revenues per loan.

So until loan sizes increase dramatically as secured notes become more common, Prosper has raised its prices for the core portion of its loan demand, the alt-prime and subprime portion. The company left its superprime, class AA price alone because it competes with banks and credit unions for this type of borrower.

...most loan origination fees increased by 1 point, although C and D loans were increased 2 points. Looking at the company's mix of business during the first half of 2007, the new pricing would have doubled its loan origination revenue from about $500,000 to just over $1 million. The weighted average fee under the prior pricing was 1.2%, compared to 2.4% under the new formula."

Matt's article on how Prosper makes money gives us some insight on what Prosper's expenses and revenue might be. Prosper has also raised $40 million in venture capital. How much have they burned through? Do they need to raise fees?

How do Prosper borrowers feel about the rate increase? Why has the Prosper community, which is normally very critical of Prosper missteps, not complained about the change? Is this a natural evolution as P2P lending matures? (Lending Club has raised lending rates .5% but the money goes to lenders, not Lending Club.) Will this, over time, reduce the number of borrowers who are funded on Prosper? Will it force lenders to reduce their rates in order to make up the difference? Lots of questions and few answers...

Monday, January 7, 2008

Number of borrowers on Lending Club increase

Several months ago I would often see new lenders on Lending Club complain about the lack of borrowers. It was difficult to invest very much money because there were just not enough requests for loans. Since Lending Club went nationwide and eliminated state lending caps the number of borrowers has significantly increased. Last week I listed the open loans on my post about refinancing a Prosper loan through Lending Club. From January 1st - 4th there were another 50+ loans as listed on the Lending Club statistics page.

Here are the borrowers you can invest in right now and the associated interest rate. Sign up and login to see the full loan details and borrower's credit profile. If you are a new lender there is currently a $25 referral bonus. There is also an additional 5% bonus for large lenders (over $4,000) and a recent interest rate increase.

to pay a bill

Holiday bills
Hello -- My name is Michael...I'm looking to lendingclub.com to help me pay the bills I've accumulated over the holiday period. Not only were my expenses unusually high, buying gifts for everyone, but the holidays are the only chance I have to see my family, and I don't get any paid time off, so my income was also unusually low. Most of the money will go to consolidate debt, but some will go to paying out-of-pocket expenses like rent that are now difficult because of my cash situation. The rest of the year, my income is much greater and my expenses much lower, so I should have no trouble paying off this loan. I already have one loan of this size from lendingclub.com for earlier moving expenses, and I've made every payment on time via their automatic withdrawal system. Thank you for your consideration, Michael

I am going to use this money to build credit. I am trying to build enough credit in the next year to be able to buy a piece of property I had to sell everything I owned after a divorce six years ago and now I am in need of a credit building. I own a mobile home presently but am looking to upgrade my living situation once I have a good credit standing.

One More Step to Freedom
This loan will be used to consolidate my revolving debt (approximately $3200) and provide a short-term financial cushion to help me navigate through the slow off-season here on my tourist-dependent island. I am a good candidate for this loan because I have spent the last several years cleaning up my credit and will not allow myself to go anywhere but forward at this point. I have a come a long way in building up my credit worthiness. The sole cause of my past credit problems is due to mistakes I made years ago involving my student loans (listed as seven different accounts on my credit report because they're broken down by semester). A few years back, after falling way behind in my payments, I worked out a restructuring deal with the supplier of these student loans. They brought my account current and I have since had one simple payment per month. I have never been late in these payments, and this has allowed me to slowly watch my credit health improve as time treks on. I am very proud of this. The other three active debt accounts listed on my credit report are two credit cards and a computer loan, with a combined total owed of $3200. These accounts, as mentioned above, will be completely eliminated with this Prosper loan. I have been employed with the same company for four years now, and job security is no concern. However, I make less in the slower winter months than in the spring, summer and fall. This is the reason for the cusion mentioned above. Although I usually have more cash saved for these slow months, I have overextended myself a bit by sending in higher-than-required student loan payments this year. I have a lot to look forward to in my life. I have been blessed in 2007, having met the girl I hope to spend many wonderful years with. I also plan to be in a position to purchase my own home in the next few years. I am a solid candidate for this Prosper loan.

Refinance College Debt
I got about $13,000 worth of college credit card debt by the end of last year. They are running between 20-30% a year on each credit card. In the past year I've paid off $3,00 of it, and I'd like to get rid of the rest as well. My income is pretty stable, I am an online marketing manager for BH Direct - an advertising firm in Los Angeles, making over $40k a year. In the past year, I've paid over $3,000 just in interest on the loans. Had I been able to get a lower interest payment, I could have knocked off another $2,000 in debt. This year, I'd like to get rid of most of my debt, and consolidate into one lendingclub account. If you are looking to invest your money into a place with stable returns, than you definitely would want to invest your money here.

Consolidate my credit card loans.

Business Funding
Business start up. Real Estate rehab on acquired properties for investment purposes.

Hurricane Rita Caused a Pressure Wound
Reason for Loan: I will be using this loan to hire a personal assistant to help with my daily living needs. During the past two years since the Great Hurricane Rita Evacuation in Houston, Texas. I developed a pressure wound on my right buttock, shortly after the evacuation. Pressure wounds grow from the inside outwards. With my Spina Bifida Disability I'm confined to a wheelchair. I am fully independent but at 35 years old its time to ask for an assistants help. I do not have full sensation in this area of the wound. A normal drive to Dallas from Houston is 4 hours, during this evacuation it took me 29 hours. During driving long distances in vehicles its difficult to perform needed very often pressure lifts/reliefs. I had this pressure wound operated on Sept. 12, 2006 after staying flat on my back one month in the hospital I went home two weeks later it opened up again. I also had Osteomyelitis & MRSA it was treated with PICC Line IV antibiotics for the duration of those six weeks. Nov. 13, 2007 I'm back in the hospital again I had 2 (Nov.13th&16th) procedures of debridement the bone of infection. No MRSA was located this time thank God. I am once again on a PICC line for the next 2 weeks while I'm recovering from a 3rd (Nov. 21st) procedure muscle flap this wound is closed. (Dec.17) I had a 4th procedure to close an abscess. This started the healing process back from scratch. Two more weeks from today I can try sitting. I had this same procedure in 1992; in total I have had 47 surgeries. My business is my escape from all the procedures. With this loan it would give me the cushion I need to work at a pace until I'm 100% healed again. My financial situation: I have two major RACING clients one of them called me the day of my 3rd surgery, which happen to be the day before Thanksgiving. This client I have a contract for around 13K with a balance of 8K left on that contract over the next few years. I have a similar contract coming up starting in early 2008 which will be similar through summer of 2009 this contract will have lots of travel involved also. The main reason as you can tell I am a trooper and never say never to a challenge. My gross income has risen 15K in 2007. I have steady monthly clients good for at least $3000. I just need that extra financial cushion to help the lives of other persons who are disabled. With my consulting knowledge of the ADA and particularly Texas Accessibility Standards which I am State certified and there are only around 600 of us certified across the vast market of the borders of Texas!

Need to refinance my car
Instead of taking out a home equity loan to pay off my car I would like to use LendingClub to pay off this car. I have loaned money on LendingClub and now I would like to be a borrower. My personal experience with LendingClub as a lender has been great, and as a borrower I look forward to the same. Love how this sytem works! Thank you.

194 low
For new windows

Consolidate my credit debt
I am looking to consolidate my credit card debt at a low APR now that I am working full-time and can start chipping away at that debt.

I am having foot and ear surgery and need funds to cover cost not covered by insurance. Loan will be for 2-3 years.

Home improvement
several projects around the house that I just want to get finished. Tired of trying to do it myself, want to hire a professional.

Pay off my debt
I have some credit card debt that I would like to pay-off. It makes sense to pay one lender as opposed to 5 credit card companies. I'd rather pay interest to one payee rather than split between 5 or 6.

Car Repairs
I recently moved to Georgia with my vehicle and the axle is now totally damaged, I am requesting for someone to please assist me in coming up the the remainning $500 I need to repair it. I would greatly appreciate any help that I would be able to recieve. Thank You

Promote music Album
to help promote my music album, play music radio, promote music in different states.

cosmetic surgery
cosmetic surgery

Our Wedding
Due to some unforseen events, the money set aside for our wedding needed to used and we have to pay cash for the remaining items. This is to make sure that our wedding day is the perfect day to start our lives as one.

Jumpstart Sustainable Career
This money will be used to pay for tuition and housing at the Ecosa Institute in Prescott, Arizona. Their total immersion design programs focus on the the power of design in shaping humans' relationship with the natural world. This relationship seems to be moving towards sustainable technologies, innovative approaches to efficient design, an ecological literacy, and a new set of design skills such as taught at the Ecosa Institute. The 3 1/2 month intensive program (late Jan.-May 2008) delivers both philosophy and technical skills that I think will be crucial in the burgeoning fields of solar and water technologies, green building, and organic agricultural/landscape practices. I have a college degree, experience running my own construction business, and passion for design. Let's do it!

Consolidate Debts
I have a few debts that I want to just pay off and have one low payment.

Debt consolidation
I have a few student loans that I want to consolidate.

Personal Loan
Personal Loan for credit card expenses from a vacation, paying off student loan.

Consolidate debt
Will use loan to pay off bills and fix section of my roof.

Engagement Ring
To buy an engagement ring.

I want to pay off my high interest CC
Purpose of loan: This loan will be used to?Pay off and close my higher interest credit cards, therefore, I will only have one bill. This is much more manageable and the debt is repaid faster. My financial situation: I am a good candidate for this loan because? I am responsible and I do pay my bills. Several years ago I ran into a bit of trouble when my husband had 2 heart attacks in 10 months and could not work and our income was reduced by over 60%. But since then I have remanaged to rebuild with my own income and stay current with no DQ's in the past 5 years. I'm stable being a home owner. My last job prior I was with the company for 18 yrs. I have now been with this company for almost 4 in the same type of position without a lapse in employment. I have a $10,000 check sitting next to me that I have not cashed due to the interest rate attached to it. I will not be adding debt only managing more wisely the debt I have incurred. Someone is going to be getting the interest on my money, it might as well be the people who have faith in me. Monthly net income: $ variable as to what is going on an how much I put in my 401k plan or which insurances I carry. I pay my bills first but always try to put a little extra away. The deposit is dependant on my needed cash flow. Monthly expenses: $ Housing: $ 1400 Insurance: $ home insurance 54 a month, car insurance 67 a month Car expenses: $ car payment 165.00 pm. Gas and maintenance about $40 per week. Utilities: $ I heat with an alternative heat source, elec app 110 per month Phone, cable, internet: $ I carry the basic and it's not a necessary need. Currently i'm paying $60 for combine communication tools. Food, entertainment: $ 125.00 Per week Clothing, household expenses $ not a budgeted amount (as funds allow) Credit cards and other loans: $ I will be paying these off with loan so the only payment I will have on these are what is due to you my lenders. Other expenses: $ Again this is subjected to what bills need to be paid

Excellent Credit History
Looking for a installment loan to consolidate some credit card debt. Excellent Credit History and make payments on time. Just looking for a lower APR. FICO is 729 Ideal APR is 13% or below.

medical bills
trying to consolidate medical and credit card bills for lower interst payment. Had medical bills that were unexpected.

Recovering from Chirstmas holidays
I am trying to get back on my feet, from Christmas, and I need a loan to pay electric, gas, and rent.

Personal Loan for purchase of home
I am in need of a loan to purchase a home, I can not get a mortgage loan because my intention was to pay cash for the home. I was expecting this 22,000 to come frome somewhere else and now I am in need of the cash to complete the purchase, I do not have long and this is my dream home.

Investment purchase
Purchased an equity in emerging markets for future use.

Purchase candy vending route
Hello and thank you for considering my loan request. My credit utilization is high because I financed the closing costs and renovations of two rental properties on my credit cards. Not the wisest thing to do, but they are bringing in some nice monthly cashflow. I am now looking to purchase a bulk candy vending route in the Baltimore, Maryland area comprised of 28 machines with three different types of candy in each. Each machine brings in over $250 a month. $250 x 28 = $7000/mth. The owner is moving out of state and is in a rush to sell. The purchase price is $3500. As you can see, I will be able to repay this loan very quickly. Please help make my dream of expanding my passive monthly income a reality! Thank you for your time and attention.

Starting off on the right foot...
Ahhhh, a familiar story... I accumulated credit card debt while in college and with recent health emergencies($3400 on card, $1300 on another). Interest rates are currently around 23%. I'm a bit old fashioned and I believe in living a debt-free life (or as close to one as possible) so I'd like to consolidate these, get a better rate, and cancel the cards for good. I am just starting my career, I just bought my first home, and I hope I can start my life off on the right foot. Well, that's my sob story!

Re-financing high rent credit. We have great credit and payback history. Would rather pay that rent to other folks, not to banks. Not interested in paying bankers to support sporting and entertainment events; building larger buildings than the next bank.

I am having a wedding in June in which Me and my fiance need to borrow 5,000 to cover our expenses for the wedding.

Moving - Need some money
Need a little bit of money to move.

Improving Visibility
After 2 pretty good years, my window coverings business is ready to expand. I would like to take out a number of ads: weekly homebuyer guide, a local victorian home estate agent, and start a direct marketing campaign to new homeowners. We gross ~$3k/month part-time and would like to double our income. We are ready to grow and prosper!

Credit Card Debt Loan
I need to consolidate my credit card debt to avoid high interest and periodic fees.

Pay off Credit Card
I would like this loan to pay off two credit cards with rather high interest rates. I always pay well more than the minimum but am sick of getting hit with the high finance charge. I no longer purchase anything with either card and plan to continue doing that when they are paid off.

Car upgrades
I'm in a custom car club and want to upgrade my car I also want to pay off my other loan with this one

Rest of payment for Lake Condo purchase
Found a recent 2 bedroom lake condo foreclosure with a SEV $46K(value = $92K) for $39K that popped up yesterday. I went to look at and had it quickly appraised today by an old friend who's business last 5 years is appraisals and it's easily worth a more than asking, but Michigan is hit hard in a recession and 2) people don't search for lake condo's during the Winter time. I have about 25K liquid with more coming in; this will get me within reach of what I need for closing; figured to do LendingClub instead of a mortgage paperwork for such a short term loan or going to a credit card to get rest of the money, as I try to not use credit cards anymore. A little background, I've been an active lender on Prosper for most of 2007, and now trying out the borrowing side of LendingClub on top of being a new lender here too (iluvpcs). Here's my stat's at ericscc from prosper to see I also lend a decent about of cash ... http://www.ericscc.com/lenders/iluvpcs I don't know if I plan on letting this run 36 months, as I get extra money I will try to make extra payments but figure 2 yrs for this loan at least. I pay all dept on time as you can tell by my profile.

loan consolidation
The money will be used to pay higher interest credit card balances.

To pay off credit card debt and consolidate bills.

Welcome baby
This is to payback a loan from a family member that we borrowed from when our baby was born last year. We went from being a two income family to one income and needed money for baby things and to adjust to one income. We have a car we are selling, a 1999 Nissan Altima, with which we plan to repay this loan.

Purchase new Snowmobile
I would like to purchase a newer model snowmobile for recreation use.

Heart contentions, to leviate one credit card, school and only 1 payment before receiving diploma - and further schooling. And to get away from the up-down usage I've done to my bank accounts with maintainence fee's.

mike click personal loan
personal loan to consolidate personal debt

A. Schild's Chicago Real Estate Business
I'm seeking 2008 funding fund my real estate venture in Chicago, Illinois. Chicago has been and still remains to be a stable and relatively increasing Real Estate Market. Fact is, without question, that we are in a "shifting market", with buyers at the wheel. I believe 2008 and beyond will be great years for the real estate industry, but it will take education, honesty, and integrity of all the integral partners of the real estate transaction to re-instill faith to the American Homeowner and Homebuyer. This is my mission. I have outlined a seemless business plan for 2008 that embodies all these qualities and more, including a donation program to the largest non-profit organization in Chicago. These donations will come directly from my earnings as testemant to my service to the communities I serve. This funding will cover expenses such as direct-mail campaigns, supply management, technology upgrades, hiring an assistant to leverage skills and time, and perhaps, space rental for to-be team. I appreciate the consideration of this loan request and I look forward to a successful future. Together we can suceed.

High-interest credit cards
I finished my Master's degree a little over a year ago and have been in my first professional job for 8 months. It's a great job that pays fairly well, but I am still struggling to pay off some credit card debt I accumulated while finishing my Bachelor's and Master's degrees. I have several cards with interest rates of 18.99%, 24.24%, 24.74% and 29.99%. I'd really love to finance some of this debt at a lower interest rate, especially the 29.99% card. I have no trouble paying my bills each month, but I also don't have much left over after paying them. I have no late payments on my credit report. Thanks for looking.

Short Term Tax Loan
Need short term loan for payment of last year's estimated taxes. Need loan completed before Jan 15th. Expecting payments to arrive earlier than they did, the money is coming, however, it was delayed and I would rather pay a lower interest rate on loaned money than get penalized by the government with a higher interest rate.

just need it to pay off credit cards , fix my car and some extra cash

Need a car for work
need 13000 to get a car for work and wrap up some bills.

debt loan
tring to get a better rate than the credit cards.

Hoping somebody granted my wish
I would like to use this money to pay off all my credit card debt, so i can get focus to save my money, thank you

Saturday, January 5, 2008

Prosper pays refunds to lenders and group leaders

Prosper announced they would pay refunds to lenders and group leaders to correct errors where servicing fees were charged "in a manner inconsistent with the Prosper Lender Registration Agreement." Rateladder points us to the back story where Traveler505 brought the matter to the attention of Prosper.

Misappropriation of lender funds by Prosper Marketplace Inc.
Follow-up to MNH Report #1
Prosper.com is 90 days delinquent on payments to group leaders

Prosper will make some payments as early as mid-January and all the refunds will be complete no later than the end of February. In addition to refunding the payments, Prosper will pay 7% interest on any withheld funds.