Investment Strategies for Peer-to-Peer Lending
Once you have decided to invest online with Prosper, you can begin to build your portfolio of Prosper Notes corresponding to consumer loans. We provide you with the tools and data you need to invest money wisely. Prosper's online marketplace offers investors unprecedented transparency, in a user-friendly environment.
Portfolio Strategies
It is important to follow sound investment strategies, both at the macro and micro levels, in any investment medium. Prosper allows lenders to browse through borrower requests and choose the loans they want to invest in. Lenders can review Direct Peer-to-Peer (p2p) borrower listings online and learn about the borrowers' credit history. This means you can select loans that match your risk and return profile.
Prosper offers you many ways to search borrower listings. You can filter the results by keywords, loan category, credit information and more. If you have an interest in lending for education, or if there is a particular geographic area you favor, Prosper makes it possible to bid specifically on those listings.
Full transparency means you have unprecedented tools and resources to research historical performance. The marketplace performance page provides easy access to data, or you can use the API to assist in your investment strategy planning.
Loans made through Prosper and Prosper Notes are not FDIC insured, nor are they guaranteed. Some borrowers may default on loans, which may result in losses to investors. That's why having as much data as possible is important to provide you with the tools and information you need to make an informed decision. Additionally, historical data has shown that lenders who diversify their risk by investing small amounts in each listing have mitigated their risk, which has resulted in better performance than for lenders who did not diversify.
Once you've determined your investment strategies, you can establish a portfolio plan for easy investing. Portfolio plans bid automatically based on your selected criteria, letting you invest in as many listings as possible. Putting your funds in different Prosper Notes helps you diversify and spread your risk.
How Does Prosper Work?
Prosper is an online destination for borrowing money and investing in loans. Prosper's lenders can get great returns by bidding on borrowers' loans, and borrowers great rates as a result of the competitive bidding. Investment and consumer lending come together in a way that can benefit everybody.
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.
