Your guide to peer to peer lending

Peer to Peer Lending Feature on Fox News

by Peter Renton on December 23, 2011

Earlier this week there was a short story on p2p lending on Fox News. It was focused on how small businesses are using Prosper and Lending Club to obtain loans and there was also some general discussion about the industry.

An article like this normally would just get mentioned in my Saturday news roundup but since they interviewed me for this story I wanted to share it here. My ten minute interview got cut down to an eight second sound bite – the money quote is at 1:38 in the video below. If you can’t see the video click here.

{ 8 comments… read them below or add one }

Dan B December 23, 2011 at 5:00 pm

Congratulations! They called you a “consultant”, they mentioned the site & they didn’t appear to take what you were saying out of context. When dealing with the media, that’s pretty much all you can ask for.

The couple they interviewed said that it takes 7-8 months to get a bank loan. Is that even remotely accurate?

Peter Renton December 23, 2011 at 9:06 pm

@Dan, Thanks. I guess I should be happy they got my name and site correct. I did get about 100 new visitors to the site from the article so that was good.

I was surprised about the 7-8 months, but that could have been their experience. I would have thought that banks would have denied them a loan much quicker than that.

Charlie h December 26, 2011 at 11:48 am

I got a used car loan in less then 6 hours through my local bank December 15.
Called at 9-10am, signed the paperwork at 4pm same day.

I would say that the 6 months to get a loan is not common.

Peter Renton December 26, 2011 at 7:17 pm

@Charlie, I think a personal loan secured by property and a business loan are two very different animals. I am still surprised it took more than six months but I know it can be a long drawn out process for business loans today.

Gary December 27, 2011 at 7:24 pm

Congratulations Peter, after last night’s Fox interview you are officially a ‘talking head’ in the DC area and from my perspective, a welcome entrant;

I have a small but significant (to me) amount invested in both Lending Club and Prosper (about 2,000 notes) and am delighted with the returns; my million dollar question for you is “Would you invest $1,000,000 in LC and/or Prosper?” I look forward to your answer (assuming you can if it doesn’t violate SEC rules).



Peter Renton December 28, 2011 at 7:12 am

@Gary, Thanks. Both Lending Club and Prosper recommend you put no more than 10% of your portfolio in p2p lending and I think that is a good rule of thumb. So, if I had a $10 million portfolio (which I don’t) I would be comfortable putting $1 million in to Lending Club and Prosper.

Sandi January 2, 2012 at 10:24 pm

I was working as a dental hygienist with a patient when the segment about peer to peer lending came on Fox News. (We have free floating flat screens in our patient care rooms). Both I and the patient I was treating were interested when this segment aired. It was “fresh air” in the news bog of the candidates. We both were interested in investing. The patient even stated, I would like to put some money into that company”.
I am interested in learning more about how to secure a loan for the URL “” which I currently own but do not have a website for, Yet.
Please tell me who I need to talk to to get advice. The segment aired again later in the day, and again while my husband and I were watching Fox News in the evening. I brought his attention to the concept.

The most interesting thing about all of this is that “The Creature from Jekyll Island” describes a similar situation 100 years ago when others started to lend money and challenge the Federal Reserve. I see this as a way to show the banks and other lending institutations that they are no longer the only game in town. They have put a choke hold on the entire nation, refusing to lend to contractors to get started again in large home construction, and paralyze that important segment of stimulus to the economy. A builder (and also a patient I see) of million dollar homes has found the only way to keep going is to build homes for those clients that are able to pay cash. Banks will not lend to these home buyers, but they are able to finance their own desires. So few are in that position.

As “The Creature from Jekyll Island” explains, banks need to lend money to make money.

I have another patient that is an account manager of milllion dollar accounts and feels strongly that the bank he represents has plenty of money to lend, but they do not have the clients. That is because they are creating a situation through requirements that makes it impossible to secure a loan from their bank.

Peer to peer lending may not be in the multi-million dollar range of lending, but by helping the struggling small business owners across America, the ground swell of success will begin to multiply and hopefully create the foundation to take lending and business to a new level.

Even though the segment was short in length, the message that it delivered to me and others could be life changing.

Peter Renton January 5, 2012 at 12:04 pm

@Sandi, I am glad you saw the segment and it resonated with you. If you are interested in taking out a loan I recommend you apply for a loan at Lending Club and/or Prosper. You can do this is just a few minutes and find out your interest rate. To get to their loan sites you can just click on the ads in the right hand column of my site (of course, I do get a small commission if you take out a loan).

Let me know if you have any specific questions.

Leave a Comment

Notify me of followup comments via e-mail. You can also subscribe without commenting.

Previous post:

Next post: