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P2P Lending Companies:

Match Makers for Direct Loans:

• Prosper works like other online auctions, with users listing and bidding on loans through Prosper's online auction platform. Borrowers create loan listings for up to $25,000 and set the maximum interest rate they are willing to pay, and then Lenders bid on loan listings they choose based upon credit scores & other criteria. The bids with the lowest rates for a particular loan win the right to fund that loan and earn the interest associated with their bid. Prosper handles all on-going loan administration tasks including loan repayment and collections on behalf of the matched borrower and lenders. Click to compare with others of this type as a Borrower or Lender


• Lending Club is a social lending network where members can borrow and lend money among themselves at better rates. Lending Club uses "state-of-the-art technology to authenticate all users (ensuring making sure they are who they say they are); credit scoring systems which rate borrower risk; and, the automated clearing house (ACH) system to move the funds between both parties." Lending Club believes their service offers "better rates by moving the lending process online and avoiding the cost structure and complexity facing banks and credit card companies." In April 2008, the company temporarily stopped all new lending activity except by the company itself while it files paperwork with regulatory agencies. Borrowing on Lending Club will be generally unaffected; borrowers can continue to apply for new loans and have them funded." Click to compare with others of this type as a Borrower or Lender


• Loanio was expected to launch in Fall 2007, but the service is still not live. Their website home page reads "Coming Soon (final pre-beta testing in progress)" Click to compare with others of this type as a Borrower or Lender

Facilitators of Indirect Loans:

• Zopa is not really a P2P lender. During a May 2008 interview, their representative described Zopa as being in the business of "social finance", where investors purchase NCUSIF-insured "Zopa CDs" (certificates of deposit) from Zopa's partner credit unions. Zopa will earmark some invested funds, depending upon the interest rate each investor chooses, to "help" the borrowers you choose from profiles on Zopa's site (accepting a lower interest rate on invested money = "help" in the form of a cheaper interest rate for borrowers). Investors do NOT bear the risk if a borrower defaults on a loan. Click to compare with others of this type as a Borrower or Lender


• GlobeFunder doesn't fit neatly in any P2P category. It's actually like a lending institution that lets prospective Borrowers request a loan amount, term and interest rate they'd like and GlobeFunder performs a real-time credit check and decides whether or not to fund your loan at the interest rate you requested. GlobeFunder may use funds from "accredited" outside investors, but otherwise isn't a true peer-to-peer lender. That said, they may still be an option to consider. Click to compare with others of this type as a Borrower or Lender

Friends and Family Go-Betweens:

• Virgin Money, known as CircleLending until acquired in 2007, manages personal loans between relatives and friends (with or without loan servicing). Additional specialized loan types, also between relatives and friends, include business, education and real estate loans - these are not included in this comparison matrix). Has options with extra fees to secure loans with collateral. Click to compare with others of this type as a Borrower or Lender


• LoanBack provides two options: (1) LoanBuilder, where a user goes through an online interview and creates customized documents, amortization & repayment schedules; and (2) Fill-in-the-blank loan documents in Microsoft Word format Click to compare with others of this type as a Borrower or Lender


• Nolo offers forms for various types of "promissory notes", including individual business or personal loan forms, or as part of larger packages of legal forms. Click to compare with others of this type as a Borrower or Lender