Archive for the ‘Borrowing’ tag
Social Lending and the Credit Crunch
There is no doubt that the last 6 months have made it more difficult for individual and commercial borrowers to get credit. How will social lending and peer to peer communities pick up the slack? My guess is that, in times when banks are fearful and investors are turned off by the stock market, social lending communities make perfect sense for both borrower and lender. Lending on Prosper is certainly lower risk than shorting in a bear market or trying to dollar-cost-average your way through the lull on Wall Street. I’m going to try to find some figures to align growth in loans originated with a decrease in commercial credit. Stay tuned…
