Yesterday we looked at the two main players in the peer to peer lending industry, Lending Club and Prosper. Today, we will look at some emerging companies that are looking to join these two as a major player. While it is true that no new p2p lending companies opened their doors to investors in 2010, it looks highly unlikely that will be the case in 2011. Here are five companies that are all looking to make an impact in this industry next year.
YadYap are focusing on a potentially lucrative niche within peer to peer lending. As the name suggests (YadYap is payday spelled backwards) the focus here is on short term lending. With this kind of lending the loan duration is measured in days or weeks, not years. It is targeted at those people who need a small amount of money (typically $1,500 or less) and are willing to pay a fee to get their money quickly. This fee can extrapolate into an annual percentage rate of 1000% or more. [Read more…]