Loanora is a very interesting new entrant in p2p lending. They are doing something completely new, at least in this country, and that is focusing on secured commercial rest estate loans funded by individuals. They are taking a narrow niche within commercial real estate – established franchises looking to secure funding to develop or refinance their property.
The loans are expected to be the $250,000 to $1,000,000 range with a term typically of three to five years. The interest rates on these loans will vary from 7-12% depending on the size and term of the loan as well as the credit profile of the borrower.
Loanora was founded by former Wall Street investment banker, David Elder, who has been involved in small business lending for more than 20 years. When I chatted with Elder last week he explained that there is a huge glut of commercial real estate loans coming due in the next year or so and many small to mid-size companies will struggle to refinance these loans. His company hopes to take a small slice of this pie. [Read more…]