Peer to Peer lending is a strategy that might be right for the times. Today, borrowers struggle to find underwriters that understand their bubsiness. More importantly, businesses struggle to find underwriters that understand they way that the business has attempted to mitigate the risk of lending in order to get the underwriter to say yes!
Enter Peer to Peer lending. Most people think of Peer to Peer lending as small loans for busines or personal use. While that view is correct for the most part and has been cemented by sitles like Prosper.com and LendingClub.com, these sites only lend small amounts of money .. basically they vall into the conusmer finance category of $1,000 to $35,000.
Peer to Peer lending was originally developed as an alternative to bank lending. These alternative and creative lending platforms gave promise to the idea that the controlling and conservative banking approach could be subverted and that lending alternatives, such as Peer to Peer lending, could become a viable alternate lending solution.
Today, banks are aggressively entering the space (See Reuters article: P2P Lending Pulls in Big Investors) Hedge funds like Eaglewood Capital and traditional banks like Titan bank are entering the space along with Google to fund these platforms. But with those large investors comes rules for the investment AND the tightening of underwriting standards.
Time for Dividend America Commercial Lending to enter the picture. We help c ompanies find the funding they need, but more importantly, we assist a few select clients in establishing their own Peer to Peer lending aparatus. Specific industries need industry experts at the helm helping to make the funding decisions. Who knows better the business of doing business than the business owner/operator themselves.
Dividend America assists our borrowing clients by helping them to find the creative solutions to their funding problem and we also establish a Capital Markets team to then help those clients establish a Peer to Peer lending arm that will help them fund their own business as well as other businesses in their space. Why would a business want to fund their competition?
The answer is simple, if one wants to control a space, they must control the flow of capital to the space. Imagine being able to identify take over targets, create beneficial relationships by funding the growth of ancillary products or services that are benificial to your business and growth.
To learn more about Peer to Peer lending and Capital Markets for your company, as well as, understanding our out-of-the-box way of thinking about lending, contact Michael Gross, President, Dividend America Commercial Lending. mgross@dividend america.com or 404-549-6756.
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