Mike Little Team Mates (asi/90674) “I see a strong need for fast financing in this industry. The peer-to-peer lending model is here to stay and can help industry companies finance larger orders.”
Mitch Mounger Sunrise Identity (asi/339206)“This looks to be way more expensive than traditional loans, so I can’t imagine this replacing traditional bank loans.”
Rod Brown MadeToOrder (asi/259540)“Certainly. These peer-to- peer networks are often filling a void that banks have either deliberately ignored or simply overlooked.”
Mike Emoff Shumsky (asi/326300) “I actually lead a group of peers organized to lend to a peer in Mexico. The interest rates can be favorable in the right deal.”
Jim Martin Numo (asi/74710)“ Maybe for smaller needs, but it’s hard to imagine for larger capital requirements. Banks and traditional lenders have the infrastructure to support larger deals.”
Larry Cohen Axis Promotions (asi/128263) “They have proven to be trusted and reliable ways to borrow money. In the past, we have lent money and have gotten a good return.”
Online Lenders Disrupt Traditional Loan Models
- The volume of loans made through online lenders has jumped an average of 84% each quarter since 2007, according to Price-WaterhouseCoopers.
- Total loans by non-traditional outlets reached $5.5 billion in 2014 and are projected to hit $150 billion or more by 2025.
- Interest rates on peer-to-peer loans vary with the risk and generally fall between 6%-12%.
- Prosper Marketplace, for one, has facilitated $1 billion in loans the last five months and is aiming for $3 billion in 2015.