2014 was the biggest year yet for peer to peer lending and in turn was the biggest year for the Peer & Social Lending blog. I’ll hit on some of the highlights of the past year as well as talk about what I anticipate in 2015 for this site. Most importantly, in 2014 we had not only 1, but 2 companies go public – Lending Club and OnDeck. The Lending Club IPO was an astounding success and I’m excited for what news we will hear from Lending Club in 2015. In 2014, I also began investing in Prosper. Seeing the success of Lending Club’s IPO I think it’s likely we will see Prosper file for an IPO in 2015. [Read more…]
Peer to peer lending is a unique for many reasons, but one that is often overlooked in my opinion is the cash flow both LendingClub and Prosper accounts provide. As I touched in a recent post about the complaints of peer to peer lending, liquidity is one of the biggest complaints. I offered a counterpoint that the short duration of peer to peer lending investments make them relatively liquid. If you’re wanting to be able to cash out your entire account instantly, peer to peer lending probably isn’t for you – at least for now. I imagine we will see some improvements in liquidity in 2015, but for now – it is slow in, slow out.
Yesterday was an incredible day for the peer to peer lending industry as LendingClub went public. It surely has brought attention to a new way of investing that I have been involved with for a year and a half. There has been a substantial increase in articles about LendingClub which will only expand the investor and borrower base. The most exciting article for me is below, where I was mentioned in the Wall Street Journal:
In this post, I’ll outline how I handled the shares of LendingClub stock I was allocated. Please feel free to share how you fared in the comments.
Thinking of applying for a short-term business loan with OnDeck Capital or just want to learn more about options when it comes to small business lending? The New York based online lender is among the rising stars in the alternative lending industry specifically targeted to business borrowers. But, it’s not for everyone. In this OnDeck loan review, we will cover what you need to know before you use this platform to apply for a loan, including what makes OnDeck Capital different from other sources of financing, which kinds of businesses qualify, and more importantly, which businesses will benefit the most from an OnDeck loan. [Read more…]
On November 17th, investors received the below email from Lending Club stating that the IPO shares of Lending Club (ticker: LC) are to be offered through Fidelity. Keep in mind it was recently reported that Lending Club may be seeking a buyer. If you are a Lending Club investor as of September 2014, you should have also received the email as well. This was a surprise since myself and many others speculated that the IPO would be offered through Loyal3. I outline the full process in this post and will continue to update this post as I hear more and hopefully successfully invest in the Lending Club IPO. If you’re wanting to get in on the IPO, I would recommend starting this process early. At the bottom of this post, you’ll also find other links to coverage of the LendingClub IPO.
I have been reading a lot of gloomy remarks about peer to peer lending around the web. Some of them are valid concerns and complaints, but most in my opinion simply show a lack of understanding and education. I have a feeling that many people jumped on the bandwagon of investing in peer to peer lending without fully understanding. I sure did, but I also committed to learn more about this new opportunity. My attempt with this blog has always been able to keep me honest about my investments and in turn educate myself (and hopefully maximize my own personal returns along the way). I’ll review a few of these concerns in this post and I welcome any discussion in the comments section. [Read more…]
This is a guest post from Rob Misheloff from SmarterFinanceUSA. Rob specializes in helping small businesses get access to loans – some of which he refers to peer to peer small business loan sites. I invited Rob to do a post since small business lending is something I don’t know much about. As you may know, there are many peer to peer lending companies involved in this space – Dealstruck, Lending Club and OnDeck to name a few. I look forward to learning more about the companies involved in this space, but for now here is a brief introduction and infographic to peer to peer lending for small business.
Filter investing is great, but it also takes time and has some downsides. It used to be that simply filtering out loans that didn’t have 0 inquiries in the last 6 months yielded much higher returns. This still may be true to an extent, but filtering on any one criteria is like chasing a moving target. Lending Club and Prosper have the data just like we do and they do their best to set rates appropriately. There is no doubt that they will continue to do better over time. So what if you could invest based on machine learning which adjusts over time? Enter PeerToPeerQuant. [Read more…]
If you’re an investor in Lending Club, you likely recently received an email about Lending Club’s new REST API. If you aren’t familiar with the term API, it basically allows third parties to create a computer program that connects to your Lending Club account. The most important function is the ability to submit investment orders on your behalf, but the new API will allow these third parties to access additional data. Regular readers know that I’m a big proponent of automated investing – in particular those services offered by third parties. The changes to the new API will have a positive effect on the third party tools as well as your user experience. Below, I provide some additional thoughts as well as those from a developer at LendingRobot. [Read more…]