I first wrote about Peerform way back in 2010 when they began life as Lendfolio. Even though they are not that well known beyond marketplace lending enthusiasts they are in fact the third oldest platform still operating in the US – behind Prosper and Lending Club.
I haven’t covered Peerform for almost three years so when their founder Mikael Rapaport contacted me recently I was curious to find out what they had been up to. It turns out a lot has happened at Peerform since 2014.
Late last year Strategic Financial Solutions (SFS) a leading debt settlement company, acquired Peerform and they have been building out new product offerings. Speaking of which they have three distinct products today:
- Marketplace loans – unsecured consumer loans, typically prime or near prime borrowers, up to $25,000 with rates ranging from 5.99% to 29.99%.
- Direct pay consolidation loans – unsecured debt consolidation loans, mostly prime consumers, where the debts are paid directly to the credit card company.
- Debt negotiation loans – debt settlement customers who qualify to accelerate their settlements with a loan.
SFS looked at many marketplace lending platforms before deciding to acquire Peerform. They were impressed by their underwriting and regulatory sophistication, their strong brand presence online, their low customer acquisition costs and how they had been frugal with the capital they had raised.
Peerform has been online since 2010 and so have an established web presence. Because of this they get a great deal of free traffic from Google – appearing on the first page of results for many popular search terms. This alone made them a very attractive acquisition target for a company like SFS.
A New Investment Partnership