Prosper alternative lending sources are where individuals and institutions pool money together and then use a bank lending institution to distribute funds to qualified borrowers. The terms on the money are not as stringent as normal bank lending would be, meaning that the money is unsecured and is lent to people that might not otherwise be able to borrow through a normal bank.
The interest rate through Prosper Alternative Lending Sources is very competitive and may even be better than what your local banker is offering, especially if you have great credit but lack the collateral to secure the loan.
The people who are lending the money are often Entrepreneurs and Investors who are looking to invest their money in other sources making the relationship a win-win. I’ve personally lent money through Prosper over several years and found it to be very rewarding.
You’ll create a profile that will tell investors what you are going to do with the money and then they opt in to fund your loan. Prosper will process your loan and issue a check as soon as you have agreed to the terms of the loan and are fully funded. It’s a great way to get your Start-Up Company seed money while you are seeking investors or just getting off the ground.
Prosper Alternative Lending Sources allows you to ask for up to $25,000 and interest rates start in the 6.5% range and goes up depending on the credit and the number of people who are willing to invest in your loan.
Many people who launch businesses often need the money to get rid of personal debt to reduce start-up cost needs for business. This type of debt is not something that you want Investors to see intermixed with your business. If you have an issue like this, consider making a loan through Prosper for your personal debt reduction instead.
Investors are going to ask you what you have tried to get your business funded. They want to know you are willing to do anything to get your business going including borrowing from any resources possible. That shows you are committed, even if lenders like Prosper turn you down. That just shows that you are not afraid to take on the calculated risk.
If you’re looking to get your business funded through Alternative Lending Sources, don’t pass up the opportunity to secure up to $25,000 in start-up capital from Prosper.