From www.labusinessjournal.com -
Peer-to-peer lending has now become standard practice for investors looking to diversify their business portfolios, even though returns have fallen over the past few years.
But the once revolutionary online financial service is still a relatively safe bet that offers solid returns, Ross said.
Editor’s Note: A tell-tale sign that a man is making so much money that it's not smart to talk about it is when he refuses to talk about it. The intelligent gentleman we're observing in this instance is the president of Direct Lending Investment's, Brendan Ross, he declined to disclose Direct Lending’s return rate (and I don't blame him), but said a fund with a similar portfolio in the same asset class would generate annual returns of around 11 percent to 13 percent.
Simply put, this investment mogul sees the future of his industry changing and he's adapting. Too many "geniuses" can't see past the nose on their face, we should celebrate men like him.
He identifies a great opportunity and seizes it. He knows that for the average consumer, getting a loan has never been easier, he sees great investment opportunities and he's right.
Here are our article highlights:
- “Peer-to-peer lending is nothing more than lending money and getting repaid,” Arora said. “It’s the oldest asset class, and it’s finally replacing overvalued stocks and low performing bonds.”
- Biz2Credit has been loaning to small businesses without the backing of a major Hedge fund since it's inception. But times are changing.
- Direct Lending’s deal with Biz2Credit is to provide the capital while Biz2Credit underwrites and services loans.
- Biz2Credit’s track record of $1.2 billion in small-business funding and its default rate of 0.7 percent also made the partnership an obvious play.
- President Brendan Ross declined to disclose Direct Lending’s return rate, but said a fund with a similar portfolio in the same asset class would generate annual returns of around 11 percent to 13 percent.
- Smart lenders realize that what makes peer-to-peer lending attractive for borrowers is the offer of quick cash.
- Prosper and Lending Club made their greatest gains during the economic downturn of the late 2000s when banks were tightening up on loan requirements for small businesses.
Listen to this interview with Rohit Arora, the CEO and Co-Founder of Biz2Credit.