The practice of lending may be entering the era of Banking 2.0 with the rise of so-called Peer to Peer (P2P) lending in the US. Small businesses and Entrepreneurs are having a hard time getting bank loans in the current market and are seeking non-traditional ways to get the capital they need to grow.
P2P lending follows the same principals that won Muhammad Yunus the Nobel Peace Prize in 2006 for microlending. That was created in response to the way traditional banks were treating the very people that were trying to grow the economy and wanted to buy the use of money from the banks.
Someone remind me what the point of a bank is again?
Will P2P lending eliminate traditional banking? That’s very unlikely. However, it will certainly result in a large stream of money being diverted from the grasps of the bank as the savvy entrepreneur realizes that banks aren’t worth their time and effort. There are far more deserving people and organizations who will charge you modest interest to give your business a boost in growth.
Here’s a list of some Peer to Peer lending resources:
The IWS Newsletter also has some interesting sources of P2P money. For $24 a year, two year subscribers may post one free classified ad in the newsletter each month.