Follow The Money: Introducing A New Small Business Financing Blog

Back when peer-to-peer lending was just getting started, I tested out becoming a little-guy lender on Prosper. With just a few bucks, an average Joe could play banker to a bakery owner, jewelry designer or other entrepreneur who needed a little cash to expand. Then the financial crisis happened, defaults rose, and hedge funds searching for yield in a low-rate environment got into the peer-to-peer debt game, transforming these little-guy lenders into marketplace ones.