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Peer-to-Peer Business Lending: Prime Meridian Gets Into P2P Business Loans

peer to peer business lending - Peer-to-Peer Business Lending

Peer-to-Peer Business Lending

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Prime Meridian Capital Management, specializing in online peer-to-peer lending, launched its new fund, Prime Meridian Small Business Lending Fund on 7/1/14, giving investors the opportunity to invest in the growing sector of peer-to-peer business lending.

Prime Meridian’s Income Fund was one of the first P2P lending funds in the United States, with over 29 consecutive months of profitable returns without a single drawdown, and has a well-established track record.

Building on this success, Prime Meridian has expanded its offerings by moving into the peer-to-peer business lending space.

P2P lending is the practice of lending money to unrelated individuals (i.e., peers) without going through traditional financial institutions such as banks or funding mechanisms such as venture capital or investors. There are four major categories of P2P lending: consumer credit, peer-to-peer business lending, student loans, and real estate. The Prime Meridian Small Business Lending fund was established specifically for targeted investments in peer to peer business lending. Its flagship fund, Prime Meridian Income Fund, covers consumer credit P2P lending.

“Banks aren’t really interested in making smaller loans of less than $500K to small businesses. As a result, most small businesses are looking for alternative methods of borrowing capital to fund future growth,” said Don Davis, managing partner of Prime Meridian. “As witnessed by the fast growth of P2P lending overall, I believe the small business lending category is the next big area for growth in P2P lending. We developed the Prime Meridian Small Business Lending Fund specifically to invest in collateralized small business loans backed by prime and super prime personal guarantees, which we believe carries much lower risk than other segments of the market.”

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Editor’s Notes:

♦ Prime Meridian moved quickly to get involve in the peer-to-peer business lending market. It was a wise move. The company has been seeing great returns on their loans and made a name for themselves by helping small businesses get the money they need to grow their businesses.

♦ In the company's first 3 months peer-to-peer business lending & funding business unsecured loans, loan performance was averaging an 11% annualized return to investors, that being the net of fees and accrued defaults. The Prime Meridian Small Business Lending Fund is currently open to both individual and accredited institutional investors.

♦ The strategic move PMI made in late 2014 has put them in great position to continue benefiting from the growing market, peer to peer lending for business is predicted to have continual growth over the next few years.

(Go to full peer-to-peer business lending article)

Peer to Peer Lending and Private Lending Info