Sunday, July 30, 2006

Bid On A Loan

Peer-to-peer lending via the internet was the subject of a recent article in The Wall Street Journal . Prosper Marketplace is trying to create an e-Bay style marketplace that connects borrowers and lenders.

Typically useful for individuals who have bad credit or have a hard time obtaining traditional financing from a bank, this service provides lenders an opportunity to fund these non-conventional loans ranging in amount from $50 to $25,000. Interest rates can go up to 29 percent depending upon the state.

Noting that the process was simple and timely, one borrower said, “you’re bypassing a whole bunch of steps that are draining, time consuming and non productive”.

If your business doesn’t quite fit the mold, consider borrowing against your company’s assets – purchase order financing, factoring and equipment leasing are all sources of working capital that may help you meet your financing objectives.

Please feel free to contact me with questions or ideas for future articles!

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