Posts Tagged lending club
Payday Peer Lending Updates for 2009-03-23
Posted by admin in P2P Payday Loans, Peer-to-Peer Lending on March 23rd, 2009
- Happy St. Paddy’s Day YadYaprs http://bit.ly/LsNnG #
- YadYap named as one of Nexx’s favorite “new-era financial services” check it out: http://bit.ly/PzYEC #
- @reland1 Thank you for the welcome :) in reply to reland1 #
- @prosperlending thanks for the follow - we’ve enjoyed your blog for some time now. #
- From Rickety: YadYap Peer-to-Peer Payday Loans: Rickety has a great write up about YadYap and the P2P lending pl.. http://tinyurl.com/cfmewb #
- If you are peer lender ping me for info on how to get an early access pass to the YadYap lending platform. #
- The old blog at yadyap.wordpress.com has been moved to http://www.connectfund.com #
- Weekly Peer Lending Updates for 2009-03-16:
Savings Up; Short Term Loans Still Critical in 2009: Most economist.. http://tinyurl.com/d78kus #
Related articles
- Examples of online communities in the financial services industry (thecustomercollective.com)
- Examples of online communities in the financial services industry (freshnetworks.com)
- Why you can’t get a loan (money.cnn.com)
- Peer to Peer Lending Offers High Returns In Low Rate Environment (frugaldad.com)
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Flip payday around and it spells YadYap
Posted by YadYap in P2P Payday Loans, Payday Borrower, Payday Lender on November 8th, 2008
There are three main issues within the payday loan industry that helped give rise to the creation of YadYap:
- The public’s outcry with loan rates charged by traditional payday lenders, and the lack of a good solution.
- The non existence of a true marketplace to create competitive payday loan rates.
- The inability for payday loan borrowers to build credibility as they successfully pay off loans.
The public outcry can be heard from around the country. Some states have banned traditional payday loans all together, others have legislated interest rate caps, while others still allow payday loans in all forms. The most recent political battles can be seen in the change in Arizona payday loans, and Ohio payday loans. YadYap is working toward a solution that will eventually bring lower cost payday loans to everyone who needs them.
What do you do when you want to get the best rate for a car loan, mortgage, or any other loan? Well, like many other people you may visit Lending Tree “when banks compete, you win.” Or any other website that creates competition between lenders. Other great examples now are Prosper and Lending Club. Why do you do this? Because you will get the best rate that the market is willing to give you. Now consider someone with an immediate need for a small amount of money so that a check they just wrote does not bounce, or so they can make their car payment. There are two problems. First, they do not have the time to shop around, and second there is not a marketplace for Payday loans. YadYap will solve this issue by creating 24 hour auctions where multiple bidders will place offers to fund a payday loan request. Now, where would you go if you needed a payday loan?
One of the reasons eBay works so well is because of their rating system. Who in their right mind would sell a product to someone on line who they know nothing about and trust that it would be a smooth transaction? When you transact on eBay you can see that the other person has for example a 99% positive rating, and you are ready and willing to do business with them. YadYap will bring this same philosophy to payday loans. Lenders will be able to see if the borrower has other outstanding payday loans, and will be rated according to how they have performed on previous YadYap loans.
YadYap will change the way you read the word payday!
Related articles
- Payday Loans - Pros and Cons (mortgagesloans.suite101.com)
- Pluses and Minuses Of The Payday Loan (refinanced.blogspot.com)
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P2P Liquidity Concerns at Prosper and Lending Club - No Problem for YadYap
Posted by YadYap in Payday Lender, Peer-to-Peer Lending on October 21st, 2008
In an online Wall Street Journal article titled “Peer-To-Peer Lenders Get Into Secondary Market” Arden Dale discusses the reasons for, and benefits of having a secondary market is association with peer-to-peer lending platforms. Here are the main take-aways from the article as well as how YadYap’s system differs.
- Prosper and Lending Club both saw the need and demand from current lenders to have a secondary market to create liquidity.
- A secondary market is a great option to give lenders, but overall costs to lenders will rise.
- Yadyap’s model creates almost instant liquidity by offering short term 2-4 week payday loans. No secondary market is needed to achieve liquidity for lenders.
I am sure it was apparent to the founders of both Prosper and Lending Club before they launched that there would soon be a need for liquidity. The lenders within both platforms have now shown a demand for it and both companies have responded well. There just simply are not too many people out there that want large amounts of money tied up for three years. We commend both Prosper and Lending Club for taking the initiative and paving the way for liquidity in the new world of P2P lending.
The secondary market is critical for the growth of these traditional P2P platforms (assuming P2P has been around long enough to use the word traditional). With this new addition, however, will come more expenses for lenders. Currently there is a 1% fee to sell a note on Lending Club. These fees are necessary and in relative terms small, but none the less, they are costs that will reduce lenders overall returns.
YadYap offers short term (2-4 week) payday loans. This model provides almost instant liquidity for lenders. Active lenders with multiple loans outstanding will have the luxury of seeing loans turn over daily and will have those funds available in their account to fund new loans.
We are excited to see our system play an important role in the peer-to-peer lending world. We believe that lenders will experience the excitement of the YadYap model within weeks of placing their first loans!
Related articles
- lending club, my best investment of 2008 (bripblap.com)
- Peer to Peer Lending: Harvard Business Review Breakout Ideas of 2009 (bargaineering.com)
- Peer to Peer Lending Offers High Returns In Low Rate Environment (frugaldad.com)
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