While searching for an Angel Investor for a large internal project we’ve been working on, I ran into a site called Prosper. What Prosper does is lend money to average everyday Americans like you and me and they also allow someone interested in lending money to become an investor. So to simplify things, Prosper creates a connection between a person looking for money and a person willing to lend money.
It’s sort of setup similar to E-Bay, in that you create an account, tell your story, how much you want, what interest rate you’re willing to except and then the Investors on the site Bid on loaning you money by offering a lower rate, then another investor offers a better deal with a lower rate, and so on, and so on.
What I like about this is, that these are real everyday Americans in need of money and the Investors are real everyday Americans willing to take a risk on lending you money.
Here’s the link to their How It Works page on the Prosper site. They’re not currently offering Loans in all States yet, I assume they have to go through a State by State licensing approval process, but here’s a link from their Blog that shows the States they currently cover - Click here for State List.
Kevin Gillett writes a good Article about Funding for Small Business which is posted in the Prosper Blog.
Now for something up our alley, Prosper has a nice piece of Dynamic Flash on their home page which pulls in the Featured, Second Loans and Ending Soon using a nice visual transition, definitely going to find some cool uses for that.