How Does Lending on the Prosper Measure Up Against the Stock Market?
As someone looking for sound opportunities to grow your money, it can be difficult to know where to invest.
Weigh the risks for investing money or buying stocks
We don't need to tell you how volatile the market has been. And knowing just how long to invest in a healthy sector before it turns isn't recommended for either novices or the faint of heart. Fortunes can evaporate in a day as we have seen in the recent months.
At Prosper, we want to help you by mitigating the risks of peer-to-peer lending as much as possible. And yes, there are risks. Private money lending through us is not FDIC insured nor is it guaranteed. Some borrowers may default on loans, just as some companies you invest in may fail.
To help avoid defaults, we provide you with the tools and data you need to make informed decisions to invest money. You can also diversify and spread your risk by bidding as low as $25.
Place a value on your time, too
Unless you have a crystal ball, effectively investing in stocks requires that you gather copious amounts of information on prospective companies, sift through it, and then guess where the market is heading.
Prosper makes things easier and more efficient. Simply perform a search on our site. Lenders can peruse our borrower listings and read their stories.
You can also filter the results by keywords, loan category, credit information or more. For example, if you'd like to bid on a listing for debt consolidation for a New York policemen with at least a B Prosper Rating, you'll find one in minutes if it's in our current pool of loans.
Peer-to-peer lending: A viable alternative for you
With all of this in mind, we think Prosper can provide an excellent alternative to the volatility of Wall Street or the conservative returns of CD or money market accounts. Again, returns with us are not guaranteed nor FDIC insured, but we believe we provide a much more lender-friendly, transparent environment.
Why not open your account now and learn more?
How Does Prosper Work?
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.
