Prosper is a lending marketplace that matches borrowers with investors and provides personal loans to small businesses for their expenses. It is ideal for startups who do not usually qualify for traditional business loans from banks, as they are required to have a demonstrable history and substantial revenue. Prosper provides loans to individuals who have an above-average personal credit. Prosper’s peer to peer loan provides startups with the funding they need to grow their small business. Prosper lets you borrow up to $35,000, and does not require your business to have an established tracking record.
Upon submitting your application, Prosper will verify your identity and analyze your credit score. It will then assign you a Prosper rating which determines your interest rate. The interest rate can range from 5.99% to 32.99% depending on your personal credit score. Funding your loan can take up to two weeks, and you can choose either a 3-year or a 5-year term to repay the loan. Prosper is best for startups that need comparatively smaller amounts to support their business and do not have a long business history to qualify for traditional business loans. Prosper is amongst the largest peer to peer lenders is a great choice for people who are not used to getting a loan online.
Prosper’s services have been regarded as ‘problematic’ by some users for a number of reasons. Prosper straightaway denies applications having a credit score any lower than 640. For some users, depending on their credit score, the interest rate can be very high with a maximum of up to 32.99%. Moreover, Prosper’s services are currently not available in Iowa, Maine, and North Dakota.