Comments on: A p2p lending service designed around borrowers with good credit records http://blog.communitylend.com/2008/04/11/a-p2p-lending-service-designed-around-borrowers-with-good-credit-records/ Starting the conversation about P2P Lending in Canada Fri, 12 Feb 2010 06:08:07 +0000 http://wordpress.com/ hourly 1 By: Dave http://blog.communitylend.com/2008/04/11/a-p2p-lending-service-designed-around-borrowers-with-good-credit-records/#comment-58 Dave Fri, 11 Apr 2008 23:03:43 +0000 http://blog.communitylend.com/2008/04/11/a-p2p-lending-service-designed-around-borrowers-with-good-credit-records/#comment-58 It seems to me the 'default rate' doesn't tell the full story - if those higher risk people were willing to take loans at a higher interest rate, a portfolio of their debt could still be profitable for lenders, even if a certain percentage defaulted. Just don't put all your eggs in one basket, and do some math to determine a minimum interest rate to still make a profit overall. :) I hope CommunityLend will make a lot of information available about borrowers, and more importantly, encourage them to be forthcoming with information. On IOU Central, many loan requests contained insufficient information to make good judgments. It's almost as if people forgot they were asking strangers to trust them with their money. It would have been cool if there was some medium where borrowers and lenders could communicate their expectations of one another... Great to see you CommunityLend guys moving forward. Best regards, Dave. It seems to me the ‘default rate’ doesn’t tell the full story – if those higher risk people were willing to take loans at a higher interest rate, a portfolio of their debt could still be profitable for lenders, even if a certain percentage defaulted. Just don’t put all your eggs in one basket, and do some math to determine a minimum interest rate to still make a profit overall. :)

I hope CommunityLend will make a lot of information available about borrowers, and more importantly, encourage them to be forthcoming with information. On IOU Central, many loan requests contained insufficient information to make good judgments. It’s almost as if people forgot they were asking strangers to trust them with their money. It would have been cool if there was some medium where borrowers and lenders could communicate their expectations of one another…

Great to see you CommunityLend guys moving forward. Best regards,

Dave.

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