Yes, this is an interesting site. I posted a loan for $15,000 10 days ago, and it’s almost fully funded. Lenders bid on a small portion at a time until the whole loan is funded. My listing ends today and when I checked it last night, the remaining balance to be funded was $3,000.
One thing is that, if your loan is not fully funded at the expiration day, you need to re-list either for a lower amount or at a higher interest rate. People keep re-listing until the entire loan is fully funded. It’s an interesting site for folks like us who need extra cash but do not want to go through the bank. I’m hoping to see mine fully funded today or else, I’ll have to re-list. The lenders there are very supportive, especially if you join a group.
The site is legit. However, one caveat…there’s always one, isn’t there? When you sign up as a borrower, one of your credit reports is pulled (I think Equifax) and you are assigned a credit rating. If your credit isn’t the best, this may not be the best alternative for you. Just my 2 cents.
not sure about the lending to a new llc. check out their website and read the disclosures and rules. as previously stated they pull a credit report and score on applying borrowers when creating the profile. the score is then converted to a letter grade for lenders to quickly shop their funds. if your business has no credit history i’m certain they will want to pull your credit file and put you on the hook personally for any loans. again, read their rules for the definitive terms. good luck
Yes, they have very strict rules. You will not believe that though my loan request was funded for $15,000, the money was not released to me because I am a new Real Estate Agent with only two months’ commission stub to prove my income. They are very much concerned about your credit scores, DTI and proof of income. Anything short will never be accepted. They are very strict.
Piggybacking 71tr’s post. They use your personal credit so please, please, please read the disclosures. I’m not saying that they won’t but I don’t recall anywhere to specify business vs person during the sign-up process, so unfortunately…if memory serves me correctly, dealmaker, you may be out of luck. But I could be wrong, so check it out & check the fine print.
Prosper is only set up for individuals, not businesses. So all loans are personally backed.
They use your Experian credit report. A soft inquiry is done when you sign up, a hard inquiry will be done if your loan fully funds.
They are still basically in the start-up phases, so there are “quirks” being worked out as they go.
I visited the site and was not impressed with some of the results that
potential borrowers were recieving in terms of gettiing their loans funded.
It seems that the process should be quicker and more streamlined,
I know that they are just getting started and may take a while for this
to happen. I am thinking you may be better off going thru finance co.
Hfc,wells,wamu, cash call, etc. if you need quick cash…
When you visit the Review My Listing Forum, you will see how prospective borrowers with credit and income problems are ridiculed by the lenders. It’s very pathetic that the lenders who will unlikely bid on your listing are the ones who will bombard you with unneccessary and ridiculing questions.
No matter how well you explain your situation, they keep asking you questions that may even worsen your situation. However, some individuals with great credit and income are treated with much respect.