Forbes (P2P Lending) and CNBC (LendingClub) | P2P Lending, Peer to Peer Lending, People to People Lending

I found this of interest from the Forbes article (small business loans from your local bank require a personal guarantee and you don’t personally benefit with your credit score by paying back the loan):

For entrepreneurs, these sites offer an alternative and needed source of capital.

The four sites–GlobeFunder, Lending Club, Zopa and Prosper–each estimate that approximately 20% of the loans they handle are for businesses.

“It’s not going to replace traditional bank lending anytime soon, but it will be an alternative for some,” says Dr. Thomas Meyer, an economist at Deutsche Bank Research in Frankfurt, Germany, and author of a research note on person-to-person online lending. “It certainly won’t relieve the entire credit crunch in the private sector because it’s a huge difference in magnitude, but it is a growing niche.”

For small businesses that often get burned by bank credit scoring models, these sites can help ease the pain with straightforward approvals for relatively small loans.

“Traditionally, you could not get small business financing from banks until you had two to five years of financials to present to them,” says Patrick Gannon, a senior vice president at Lending Club and a former executive at Wells Fargo’s small business division. A person-to-person lending site, he says, “creates an opportunity for new business owners or someone with a business idea to pursue that entrepreneurial dream and get it financed by people who find it intriguing or the person’s credit history to be good enough that people will take a risk on them.”

And as for the Power Lunch interview… I think it is great to get coverage of the p2p lending space… I think the p2p loans as compared to CC question was a softball that could have been hit harder, but other than that it was excellent. P2P lending companies offer better rates to borrowers than non teaser rate CC AND unsecured loans from your bank.

If you want to try Lending Club or Prosper I encourage you to use the following links to sign up and receive a startup bonus.

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