• Prosper’s September 2008 market survey shows a sharp decline in P2P subprime loans that are successfully funded.
• The report also shows that peer-to-peer (P2P) lending amounts are shrinking.

It is not news to YadYap that there is a dire need for a good solution offering short-term loans to consumers who otherwise would go without the ability to get any financing, or resort to a traditional payday loan. The payday lending industry takes a great deal of heat for high interest rates charged to borrowers.

This begs the question; who else can fill the gap that lies between conventional lending or current peer to peer lending and a traditional payday loan. The gap is wide and the need is real. Since Prosper’s inception there have been close to 200,000 Prosper loan listings go unfunded.  Where have these people gone to meet their short-term need for money? Yadyap is central to solving the lack of subprime borrower representation.

It is also interesting to note in Prosper’s report that P2P loan amounts being funded are shrinking in size.

Year-to-date the average loan amount is $6,047, down 13% or $925 compared to the same period last year. In September 2008 the average loan amount was $5,544, down 23% or $1,631 from September 2007. This indicates that lenders on Prosper are being more cautious by directing their bids toward listings with lower requested loan amounts.

YadYap (payday backwards) will also fill the need of peer-to-peer lenders to fund loans with shorter terms,  while at the same time helping someone with a short-term financial need.