I’m considering investing in microloans for semi-passive income. The two biggest hitters in this arena are Prosper and LendingClub. I’m not sure which one would be a good investment – if either. Let’s look at them for a bit, shall we?
Posts Tagged ‘lendingclub’
Is Prosper.com a bad investment?
In Investing, Research on September 24, 2008 at 6:26 am
Avoid This Company Like the Plague
By Chuck Saletta
August 29, 2008
Online person-to-person lending seemed like a terrific concept. People with a bit of available cash could have the opportunity to loan their money to folks who needed it. Without the expensive branches and staffs of brick-and-mortar banks, an online intermediary could keep its costs low. In theory, that would result in higher-than-bank-interest returns for the folks who could lend cash and lower-than-bank-interest costs for the people who needed to borrow it.
If it worked, it would have been a tremendous win for all involved. It’s too bad that online-lending pioneer Prosper.com botched the execution of that concept. Sure, any start-up will have growing pains. It’s how a company responds and adapts to those pains that really matters.
On that count, Prosper has earned an F.
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Well. Let’s take a look at this article and see what he’s talking about. The link is from The Motley Fool, which is a great site for learning about investments.
