Prosper is a peer-to-peer lending marketplace, where borrowers can request loans between $2,000 and $35,000, and individual lenders can invest as little as $25 in any loans they select. Prosper handles the servicing of the loan on behalf of the borrowers and lenders. Though Prosper is a personal loan company, their loans can be a cost effective choice for small businesses.
Loan applicants must have a credit score of 640+, and there is no minimum gross income or credit history. Applications for loans with Prosper can be completed online in as little as ten minutes, and it takes approximately 1 week for the money to arrive. Applicants can check Prosper’s rates for any loans they might have in mind by putting their information in here.
Prosper Reviews: Terms, Qualifications, & Costs
Prosper is America’s longest running peer-to-peer lending marketplace, and customers praise its speed, efficiency, and professionalism. The table below shows the typical terms, qualifications, and costs, of partnering with Prosper for a loan.
Prosper Loans Terms & Qualifications at a Glance
|Loan Amounts||$2K - $35K|
|Estimated APR||5.99% - 36%|
|Loan Term||3 or 5 years|
|Funding Speed||3-5 Days|
|Time in Business||No set minimum|
|Annual Business Revenue||None|
Who is a Prosper Loan Right For?
Because of their lengthier loan schedules than many online small business loans, Prosper is a better fit for small businesses willing to enter a long-term lending relationship rather than those looking to fill a short term cash flow gap.
If borrowers are prepared to meet Prosper’s term specifications, Prosper may be a good fit. When a borrower applies for a Prosper loan, they analyze the borrower’s credit profile and assigns the borrower a grade, determining the interest rate and origination fee the borrower will be charged. These grades help investors decide which borrowers they would like to invest in.
If you have a high credit score and a low debt-to-income ratio (can’t be higher than 50%), your Prosper grade will be higher, and your rates lower. It takes less than ten minutes to check your rates on Prosper’s website, and depending on your situation you may qualify for a very good deal.
It should be noted that Prosper loans are not available in Iowa, Maine, and North Dakota.
Prosper also has an app, Prosper Daily, which is a handy way to keep track of your accounts and balances.
Prosper Reviews: Costs
Annual percentage rates for Prosper’s loans range between 5.99% APR and 36% APR for first time borrowers, depending on the borrower’s credit data. Prosper will take an origination fee, usually approximately 5% of the loaned amount. Based on your grade on Prosper’s website you may qualify for a particularly low interest rate.
In part because Prosper facilitates loans between borrowers and investors rather than fulfilling loans itself, Prosper’s loans are less flexible than some of their competitors. There is no way to adjust your payment schedule with Prosper and you will be charged a late fee if you do not make your payments on time.
Prosper Reviews: Customer Satisfaction
Prosper has received mostly positive reviews from borrowers online, with reviewers praising their speed, smooth application process, low rates, and professionalism. Their service is seen as convenient, and a good deal for applicants with good credit. BBB has awarded Prosper an A+ rating.
Summary of Prosper Customer Reviews
|Trustpilot||7.3/10 on 49 reviews|
|Credit Karma||4.6/5 on 328 reviews|
|BBB||4.07/5 on 29 reviews|
Negative Prosper Reviews
As is common for financing companies, many of Prosper’s negative online reviews come from applicants who did not qualify for their loans. Beyond that, some borrowers found Prosper’s policies too rigid and their customer service unhelpful with their individual needs. Some were surprised by interest rates more expensive than they anticipated, as Prosper’s rates can vary greatly depending on the applicant.
Though Prosper’s competitors include traditional banks and specific financing lenders, their main competitors are other online lenders, including other peer-to-peer marketplaces and different loan providers. Some of these competitors include:
- Lending Club: Another popular peer-to-peer lending service, Lending Club’s rates are comparable to Prosper’s. It offers a larger window of loan amounts, $1K-$40K for personal loans and $5k-$300k for business loans, and can get you funded within a week or two. Lending Club’s terms are more flexible than Prosper’s, and they offer a payment modification plan for borrowers who are having difficulty meeting payments. They also allow joint application for their personal loans where Prosper does not.
- OnDeck: A short term lender able to provide loans of up to $500K with 1-3 days, Ondeck has APR rates of 30-50%. Their comparatively higher cost will likely be offset in terms of capital if you are able to pay off the loan in less than a year, making OnDeck a viable choice for short term financing. They also offer lines of credit that are best for prime borrowers.
- Kabbage: Offering line of credit products, Kabbage is often compared to OnDeck for its similar rates, speed, and required qualifications. Kabbage’s APRs also fall within the 30-50% window, and like OnDeck they can fund you in 1-3 days.
- BlueVine: Good for up to $100K, Bluevine’s line of credit product is competitive to OnDeck and Kabbage in price and time to funding, though their services are only available in 43 states. Bluevine also offers invoice factoring for businesses with outstanding invoices for funding up to $2M.
For a more detailed comparison between Prosper, Ondeck, and Kabbage, check out our article on the best small business loans.
The Smart Hack
America’s premier peer-to-peer lending marketplace, offering personal loans of up to $35k, Prosper is well regarded by borrowers, investors, and peers. Prosper offers loans with APR as low as 5.99%. Though Prosper is not as flexible in their qualification requirements as some online lenders, their process is quick, efficient, and especially cost effective for applicants with great credit scores and debt-to-income ratios. In less than ten minutes you can see what rates Prosper offers for your loan by applying online.