Lending and Borrowing for Entrepreneurs

Chuck

We`ve created a group at Prosper.com strictly for StartupNation members - you can read much more about the purpose and specifics at this page, but we also wanted to carve out an area on the forum where community members can post questions or comments regarding Prosper, borrowing or lending through this program, or anything else of relevance to this effort.If you`re looking for a cash infusion to start and/or grow your business, or someone with a passion for entrepreneurship (like us) who`d like to both fund another business (and perhaps make a tidy return in the process), please check it out.

Nuevolution

Chuck,I think this is the break I was looking for... No is that based on Business Credit or Personal Credit?

Chuck

I`ll have to check Edgar, but I would imagine it can be based on either of the two - I would guess that you can submit your registration on Prosper as the business owner, and take advantage of your business credit (if that`s what you`re hoping to do).  As I said, I`ll have to check and see - or if you find out before me, please post the answer here!

SEOGuru

Hi Chuck,Is there opportunity for us to become involved? I represent a NY based company that specializes in finding investors for companies that are looking to expand and seek private equity funding of $10M and higher.  Please advise.Thanks

Chuck

Hey SEO - Prosper is primarily focused on microloans, and isn`t designed as an alternative for equity/venture financing.  I believe the maximum loan amount if $25,000 at this time, so it`s really targeted at an entrepreneur who`s looking for a smaller capital infusion to bridge the gap or cover short-term costs (or whatever use they may find for it).Given your role, I`d love to have you as part of the group, so please do join up through the link I`ve provided.

robertj

Horace:
A very unique approach. I hope it works for you.
Robert Johnson

MrTea

Horace,

That is a unique approach indeed.  My only concern would be if you
unknowingly run into an investor (like I did in Manhattan last week)
you may not have a letter in your pocket.  In addition, many
investors get hit all the time for requests and don`t want to read
something but rather have something read (actually spoken) to
them.  Maybe a combination of both of these approaches will cover
your bases?  Good luck it sounds like you`re already making great
progress.

davenny

Chuck,I just wanted to add my thoughts to this topic, first I love the prosper.com business model.  I believe we some small improvements that it could really give some of the commercial lender, VC and Angel investors a run for their money. (No pun intended).However, I had about an hour long discussion with them based around the same topics being discussed her in regards to business credit and person credit.  Everything as of about a week ago was based on personal credit and is personally guaranteed. I would have put a request for capital of around 1.2 Million if it were for business.  In additional I believe most of the members on prosper.com are looking for these kinds of opportunities.  I know I personally feel much safer buying business debt then personal debt.I asked them when they would be adding the business side and they said hopefully in the near future.If anyone has any thoughts or comments I would love to hear them.

Chuck

No doubt there`s a niche focus given the lending levels Erik - I`m guessing they`re following the `walk before you run` philosophy of growing their own business, tackling the more easily managed issue of micro-loans based on personal credit.  And there are a lot of businesses that need just that sort of small infusion of cash to generate solid returns and payments.But you`re right that it becomes vastly more interesting to many when you add in the potential of a true marketplace for much higher levels of financing.  That`s a thorny area though, we`ll have to see how it pans out for them.

alphading

You should also check out Zopa - it`s also an exchange where entrepreneurs can get funds by borrowing from other people.I`ve done a lot of comparison between Zopa and Prosper (and know a lot of Prosper lenders) and, if you ask me, Prosper is a bad deal for borrowers unless you have a horrible credit history- if you want money you have hundreds of investors emailing you with questions and they are not so nice about it. I hear Zopa is launching in the US soon. I`d rather get a loan from Zopa, but that`s just me alphading

Chuck

Understood alphading - as you mentioned Zopa is UK-focused at this time, so we chose to start the experiment with Prosper.  We`ll obviously adjust as necessary, but hopefully this will work for some of our community members!

Chuck

Quick update on the StartupNation Prosper group - we`ve increased to 24 members at this time, and our first intrepid entrepreneur has created a loan request that I hope you`ll review and consider.The request comes from none other than Brandi Ramos, one of our eBay expert bloggers!  Brandi is seeking capital to make a significant inventory purchase for her highly successful eBay store - given her past success, chances are this is a great bet.You can review Brandi`s request here -- be sure to join the StartupNation group!

LisaB

I`ll be next. I`m fixing to post a loan request within the next week. Just getting all my ducks in a row. Wish me luck!

LisaB

My listing is up! LisaB2006-8-28 20:14:58

Brianneedshelp

 Hey, I hear a lot about investers and business loans, but I`m really new to this. I`m worried about borrowing, though I "REALLY" need to, when my business is nothing more than odd jobs right now. I`d like to get established first, but one seems to rely upon the other.  I just need good advice, please help!     My profile will tell more.  E-mail me if you`d like, I can really use some help.  
 
    

elsizzle2000

Ok how about a website that deals with personal loan amounts slightly larger? I need around 50K to start up my business (should be a million dollar company by third year)... Thanks all!