Friday, November 24, 2006
New way of getting business loans and have bad credit!
A new innovative group on http://www.prosper.com called "Two Millionaires bid on high risk loans - help restore Credit" is helping people with high risk credit scores by providing a place for them to apply to people-to-people lenders for a series of small loans. In states where interest rate caps are not restrictive, the borrowers offer interest rates as high as 29% and their determination to never miss a monthly payment. Prosper provides an eBay type bidding platform to get borrowers and lenders together to make the deal and share the risk. The borrower's month to month payment progress is reported to credit bureaus and credit scores are on the way up. Prosper's CEO is Chris Larsen, former chairman and co-founder of E-Loan. Major backers include the founder of eBay. In effect, Prosper's pioneering program makes ordinary individuals the bank and the banker. Instead of swapping products and services for cash as is done on eBay, Prosper's product is cash. In less than one year Prosper has attracted 100,000 enthusiastic people. There's room for more, but everyone must be a USA resident at this time, and borrowers must be determined to never let the community down by being late with a monthly payment. Credit checks are done and other screening methods are applied to help keep Prosper a fun, safe, and profitable place for everyone. In their first 45 days on Prosper.com, the unique "Two Millionaires" groups attracted 600 members and placed 50 loans. They consistently run more than 100 active listings for lenders to browse at any give time. Many of the listings offer attractive interest rates for people-to-people lenders to choose from. Finally, ordinary people have a chance to earn income on their money that is much greater than money markets. Assuming of course, that the borrowers stay faithful to their community, and make their payments on time. It's not risk free, and this is not intended to be investment advice.The Two Millionaires webpage can be viewed at this link: https://www.prosper.com/public/groups/group_home.aspx?group_short_name=Mayans2
# posted by Erik Salmon @ 9:47 AM 
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Hi Angela,
I would say that you have to first decide what kind of business you want to go in to. You will be most successful at a business you know something about and have a passion for.
Then you are going to have to do some research on franchises and make a list of the pros and cons. For some, a franchise is a good fit since they typically have a proven record but the biggest con is that you are limited to the franchise model.
Purchasing an existing business is also a great way to get started since the ground work has already been done and should also have a proven track record, how ever you have to do your due diligent and check out the company from head to toe.
Which ever way you go, make sure you do your market and industry research so you can make an informed decision.
On a final note, make sure your credit is as good as you can get it. You are going to need good credit and you need to educate yourself on how business finance works. I have put together a free corporate credit e-course that you can sign up for at Make It And Keep It Wealth Systems I hope that you found this helpful and let me know if you have any more questions.
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I would say that you have to first decide what kind of business you want to go in to. You will be most successful at a business you know something about and have a passion for.
Then you are going to have to do some research on franchises and make a list of the pros and cons. For some, a franchise is a good fit since they typically have a proven record but the biggest con is that you are limited to the franchise model.
Purchasing an existing business is also a great way to get started since the ground work has already been done and should also have a proven track record, how ever you have to do your due diligent and check out the company from head to toe.
Which ever way you go, make sure you do your market and industry research so you can make an informed decision.
On a final note, make sure your credit is as good as you can get it. You are going to need good credit and you need to educate yourself on how business finance works. I have put together a free corporate credit e-course that you can sign up for at Make It And Keep It Wealth Systems I hope that you found this helpful and let me know if you have any more questions.
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