Lending Club Reopens to Lenders while Prosper Shuts Lending Down

Thanks to writer Debtkid who pointed out in my last post that LendingClub has completed it’s SEC registration and reopened the site to lenders yesterday. You can now apply to become a lender or start lending additional funds if you are currently registered.

The interesting thing was that not only did I receive an email from LendingClub stating that they are reopening, I also received an email the same day from Prosper.com saying that they are now registering with the SEC.

Here is an exerpt from the email:

Until we complete the registration process, we will not accept new lender registrations or allow new commitments from existing lenders. If you’re an existing lender, your current lender agreements will be unaffected; your existing loans will continue to be serviced; you’ll be able to track and monitor your loans; and you’ll be able to withdraw funds from your Prosper account.

If you’re a borrower with an existing loan, you will continue with your current borrower agreement and be unaffected by the registration process. If you’re a borrower seeking a loan, you will still be able to create a new loan listing, which we will endeavor to fulfill through alternative sources.

This is interesting that they will try to fulfill your loan through other sources. I am curious as to what those may be. I am not too concerned with this since the lack luster performance I am having with Propser has me taking out all my money and puting it into LendingClub loans. In the past 3 months I have seen 5 bankrupicies and many late payments at Prosper where my LendingClub portfilio is still going strong and is completely current.

If you are looking for a way to diversify your investements, then P2P lending may be an option for you. I would recommend that before you start lending you read some of the help forums to understand risks as well as what makes a good balanced portfolio of loans. There’s money to be made there, you just need to do it smart!

NOTE: For posts that contain bonuses, be sure to read the post for bonus expiration dates. Links may work but the bonus may have expired.

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