So you’ve got an idea and a name but not necessarily the dough required to start your dream business. Well, today I’m here to talk to you about borrowing money, and more specifically peer to peer lending.
There are many sites out there that offer financing such as this but I want to talk about www.prosper.com, as I have personal experience using this site. Prosper is a financial community made of individual people, either seeking for lower rate personal loans or investment opportunities with higher returns.
It is simple to become a borrower. Posting a loan listing will only take about 10 minutes of your time. You must be a U.S. resident with a credit score of at least 640. Certain identity information such as a bank account, your social security number and driver’s license number are required to be disclosed.
You can borrow a 3-year fully amortized unsecured loan anywhere from $1,000 to $25,000, typically with interest rates starting around 6% and increasing from there depending on your credit. Here are some tips on how to create a successful listing:
- Be as personable as possible in your description of what your loan is for. Investors like to invest in people they can relate to.
- Include a picture of yourself or your business if possible, again trying to connect with investors.
- Although you may consider yourself “self-employed”, be sure to list yourself as a full-time employee (if you are) and include any guaranteed payments/income you may receive from your company.
- Be detailed in your explanation of any delinquencies in your credit or reasons for high revolving debt (i.e. company credit card that gets paid off monthly but is under your name personally) so your investors feel informed.
- Start with a higher interest rate as it will attract more bids, which will drive your interest rate down. If you end with an interest rate you are not comfortable with, you do not have to take the loan.
Check out www.prosper.com today! I promise it is really easy. Good luck!
