Jun 27, 2009

Peer-to-Peer Social Lending Sites

An article in Business Week this week points out that unsecured credit for small businesses is drying up and that there's a clear need for new types of small business financing. One new type of financing that has emerged in the past year or so is "social financing": Peer-to-peer lending sites pair up borrowers who list their loan needs with private investors who are willing to offer loans at certain rates. The social lending websites getting the most press are Lending Club, Zopa, Prosper, Loanio, and Kiva.org. With the country in such a credit crunch, these online services may be worth looking into.

To understand the basics of seeking a loan for your business, see Nolo's article The Lowdown on Business Loans.