Alternative Investments and People-to-People Lending
For investors looking for opportunities to earn fair returns, it can be difficult to know where to put your money. The stock market has been extremely volatile, dropping to levels not seen in a decade. Alternative investments, such as hedge funds and private equity, have attracted a lot of money. But as the Madoff scandal has shown, there are certainly risks in alternative investment strategies that reach for higher returns.
Peer-to-peer lending at Prosper offers investors an opportunity to earn returns that may be higher than those available in savings accounts or money market funds, while offering greater control over your investment choices. It's a viable alternative investment for you to consider.
People-to-People Investing: A better alternative
There's a more rewarding way to invest — Prosper
Two-Year Returns to December 31, 2008. The returns shown
are price returns only and do not include dividends.
Investors looking for alternative investments to the stock market can diversify their assets by investing through Prosper. Prosper Notes may provide additional income while adding a new asset class to your portfolio. You can diversify and spread your risk by investing as little as $25 per listing.
At Prosper, we want to help you by mitigating the risks of peer-to-peer lending as much as possible. We provide you with the tools and data you need to make informed decisions to invest money. You can select individual loans that match your targets for risk and return. Prosper Marketplace notes are not FDIC insured nor are they guaranteed. Borrowers may default on their loans, exposing lenders to credit risk.
How Does Prosper Work?
Prosper is an online loans marketplace dedicated to investing in loans. Prosper's investors can bid on quality consumer loans, and borrowers can get great rates when they borrow money. How's that for an investment alternative you can really explore?
Prosper lenders bid on listings and purchase Prosper Notes. Each Prosper Note corresponds to a listing which sets forth the relevant details about the loan, including loan amount, price, yield percentage, and borrower information. Any payment from a Prosper Note is dependent on payments Prosper receives on the corresponding loan.
The Notes that correspond to specific borrower listings are offered pursuant to the prospectus. Investors should read the complete description of the Notes and risks associated with making an investment in the Notes as well as other information about us and our platform in the prospectus.
Prosper Notes are risk bearing and speculative investments for suitable investors only. If a borrower fails to make payments on the corresponding borrower loan related to your Prosper Note, you will not receive payments on your Note. There is the potential that you will not receive any payments on a Prosper Note. You should review the Prospectus before bidding on loans. Not FDIC-insured. Notes may lose value. No Prosper or bank guarantee.
