Imagine making money like E-Bay, but in the world of loans. Two years ago, if you lent me money with principal and interest from a family member or friend I would've said you are "crazy"! But today there is such an opportunity to get a loan from people who want to lend money. Rather than get "burned" from our family and friends for lending money anyway we should look to other alternatives.
There is an alternative much like E-Bay. It's called Peer to Peer Lending. They are called "lenders" and these are ordinary people. These lenders could be your boss, friend, grandmother, aunt, dad, or even a stanger. Their job is to fund loans on a website called Prosper.com. It is a good idea that if a family member or friend borrows from each other, do it in a format where relatives and friends can get lend their money and get paid back with interest and principal. Peer to Peer Lending was founded on the very same principal as E-Bay. Namely to allow online bidding through an auction style process of lending. Chris Larson who is the co-founder of E-Bay is the owner and founding father of Peer to Peer Lending.
If you have made a lot of money selling on E-Bay or made a deal through buying that product, the same goes for Peer to Peer Lending. Except the item is a person who needs a loan, and the bidders are the lenders who have cash$$$ A person who needs a loan becomes a borrower. When I needed a loan last year, I was able to secure a loan by doing peer to peer lending and get my loan in a matter of days. The loans are given through Lenders. These "lenders" are collectively involved in purchasing the loan and funding it. So if someone needs $14,000, then it will take mulitiple bidders to secure that amount. There may be as many as 300 lenders bidding for that $14,000 loan at $50 min bids. The amount of lenders may decrease depending on the bidding amounts from each lender. Some will bid $65, 100, $1000, or more. The limit is $25,000 per bid.
Peer to peer lending is not in the business of giving away the money. These are loans that must be repaid by the borrower within 3 years. The borrower is subject to credit preapproval to begin listing for a loan. Some may not make it to Prosper, but the ones who do make it, see it as something new and very intriguing!
Next time have your friends and family lend to each other in a safe and protected area where people can borrow money and hold them to the same standards like E-Bay where people can trust each other and stranger and friends can make loans.
Next Week: How to get a $3,000 loan
http://www.choicepeerlending.com
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