Prosper Filing Registration Statement; Enters Quiet Period

Note: This post was first published October 15th 2008, and remains posted for archival purposes.

Prosper has started a process to register, with the appropriate securities authorities, promissory notes that may be offered and sold to lenders through our site in the future.

Until we complete the registration process, we will not accept new lender registrations or allow new commitments from existing lenders. If you’re an existing lender, your current lender agreements will be unaffected; your existing loans will continue to be serviced; you’ll be able to track and monitor your loans; and you’ll be able to withdraw funds from your Prosper account.

If you’re a borrower with an existing loan, you will continue with your current borrower agreement and be unaffected by the registration process.  If you’re a borrower seeking a loan, you will still be able to create a new loan listing, which we will endeavor to fulfill through alternative sources.  As the appropriate securities authorities may consider a new loan listing to constitute the offer of a security, we are unable to post new loan listings on our site until our registration statement becomes effective.

A successful registration can take several months, but we assure you we will do our best to move forward as quickly as possible.  Until this process is complete, we’re required to be in a quiet period and will be unable to respond to press, blogger or other inquiries about Prosper or the registration filing until it becomes effective.

We apologize for any inconvenience this may cause, and want to thank you in advance for your understanding and support.

Maximize the Chance of Funding Your Listing with Not-So-Obvious Tips

Many of you may have already done your research on tips to get your listings funded by reading the help pages or visiting the Prosper forums. There are many tips that have been reiterated time and time again – such as getting endorsements or joining a group. I hope to give you some tips from a slightly different angle, backed up by some interesting statistics.

At the time you begin writing up your listing, there will be many factors that are set in stone such public records, delinquencies, DTI ratio, and so on. They will play a huge part in whether your listing gets funded or not, but there are still some not-so-obvious factors that you can take advantage of to get your listing funded.

Timing of When the Listing Ends

Bidders are most active on Wednesdays and Thursdays between the times of 2pm – 8pm PST. If your listing ends during this period, it will receive maximum exposure by ranking higher in the listings. By default, the listings under the Bid On Loans tab are sorted by the amount of time left before a listing expires. The less time that is left, the higher your listing will rank and the more bidding activity it will receive.

The More Description, the Better

The Description part of the listing is very important for borrowers and becomes increasingly important as your credit grade lowers. You should take this opportunity to explain, in as much detail as you can, the purpose of the loan and how you plan to pay it back. Even more importantly, take this as an opportunity to explain some of the negative aspects of your credit history. Be honest and it will pay, literally. In general, funded listings contain about 36.4% more content as compared to non-funded listings. Statistically speaking, the lower the credit grade, the beefier the description will have to be in order to maximize the chance of the listing being funded.

Duration of the Listing

One would naturally think that if a listing is active for longer on Prosper, it will receive more bids. This is not necessarily true, as many lenders begin bidding when a listing is about to end. There is no reason for the lender to tie up his or her money on a listing that still has 10 days left when there is another similar listing that is about to end. The money would otherwise be in Limbo for 10 days doing nothing instead of earning interest. A shorter duration for the listing benefits the borrower as well since he or she will be receiving the money earlier.

Allen Liu writes the blog Easy Prosper Tips

Shenandoah on Community

The Prosper Community is a dynamic group of borrowers, lenders, and group leaders, all brought together for the common purpose of exchanging money.  Over the past year and a half that I have been a part of it I have seen friendships form, enemies get created, and romances take place.  Prosper touches a spot in all of our lives, and whether we love it or wonder just why we are here, very few can remain ambivalent.

Prosper itself is a lesson in life, and it’s a lesson that is difficult for some of us to handle.  Many of us came to Prosper truly believing in our fellow humans, listening to the sob stories of borrowers and hoping to make the difference that will turn their lives around.  Through the difficult trials of watching our first late payment, followed by more, and our first default, also followed by more, all accompanied by a fall in our expected ROI, some of us have learned about a side of human nature that we never knew before.  We lose some of our trust and become hardened to the stories being shared by the new borrowers that come along.

There is a huge diversity among the community, from lenders looking for a place to stick some extra money down to the borrowers that are living paycheck to paycheck, and everyone in between.  This frequently leads to misunderstandings between community members.  People handle misunderstandings differently, and some people leave the community angry, while others use it as an opportunity to learn something and improve themselves.

One of my favorite aspects of the community is watching borrowers that are barely making it come here requesting a loan, and ending up not only getting their finances under control, but becoming an active member of the community and offering advice to others that are in the position they started out in.  Making a difference in people’s lives is what I see Prosper as really being about.

While the community has gone through its ups and downs, being a part of it is an experience I would never give up.  I have grown in many ways.

Shenandoah is a lender and group leader on Prosper

Refused by Credit Unions, Yes by Prosper

From the Prosper Mailroom: Lambda_Phoenix_Rising

196 people who did not know me said YES when my own credit union, where I have been a member since 1979 and major on-line lenders said NO. Prosper members even bid my interest rate down 4% saving me hundreds of dollars over the life of my loan. Signing up was fast and easy and before I knew it my loan was funded.

I have made ten payments over a time period that 5 were due. I’m very excited about being on track to having my 36-month loan paid off in 16 months and improving my credit rating. I am telling everyone I know about, including my credit union. Now that the weather is cooler, I’m back in my lumbering gas-guzzler, but the moment it gets warmer I’ll be back on my bike. And what kind of mileage do I get on it? 48 mpg city and 57 mpg highway. (Editor’s Note: The loan was taken to pay for the bike.)

I’ve already sent all of my lenders a thank you note, but I’d just like to thank you all one more time. I could not have done it without you and THANK YOU PROSPER.COM.

Lambda_Phoenix_Rising is a borrower and lender on Prosper.

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