CommunityLend blog

Sales Finance Solutions for your Business

Archive for the ‘p2p lending’ Category

Canadian’s personal debt has grown and moved to floating and high rate products

leave a comment »

CGA Canada produced their 2010 report Canadians debts. Most of us quietly assess ourselves against others and against the average as one way to judge success in achieving our financial goals.  This report provides a window into the financial lives of Canadians and it is freely available.

Credit (excluding mortgages) all through the last three years has been increasing and at much higher rates than the US.


Drilling deeper we see that 77% of this debt is in loan products with floating (Line of Credit) or high rates (credit cards) and therefore essentially no amortization.  We know that if the minimum payment is regularly made on those products they will take over 30 years to repay in full, no matter the amount outstanding.  This is hardly a recipe for reducing debt.


The CGA worry about three future risks for Canadians.

1. Decline in income

2. Asset price shock

3. interest rate shock

At CommunityLend we want to help in any way we can with transparent prices and products designed to reduce debt while also providing some protection from the risks mentioned in this report.



Technorati Tags: Canada,consumers,debt,consumer loans,fixed rate,pay down,reduce debt,financial plan,personal loan,loan,asset price shock,interest rate shock,interest rate hike

Written by amwatts

May 17, 2010 at 4:08 pm

The first 30 days – a CommunityLend update

leave a comment »

Link to email we just sent out to subscribers – copy below


It is hard to believe that it’s been 30 days since the official launch of the CommunityLend peer-to-peer lending service. It took us a while to get here and now time is flying by.

As part of our commitment to keep our community apprised of our progress we’re starting the CommunityLend newsletter this month.

Early Activity is Positive.

Since our official launch in February, our first 30 days has seen a great deal of activity at the CommunityLend website. With almost no marketing during this period, we have already:

  • Received over 28,000 unique visitors to our website
  • Registered over 450 new members
  • Received over $700,000 in Loan Demand, and
  • Posted more than $70,000 in Loan Requests meeting our strict borrower criteria

Early lenders are actively bidding on loan requests and a good number more, both individual and institutional, are in the process of setting up their lending accounts.
We’ve still got a ways to go before we really "change the rules of lending" but the first month has us pointed in the right direction.

Early Feedback Has Proved Invaluable

When we started CommunityLend, we stated that our service would be based on the needs of our customers. During the first 30 days, we received some very valuable feedback from customers on things that they liked and didn’t like about the overall experience.  We couldn’t be happier. Based on this feedback, we’ve already made two significant changes to the site and have many more coming. We’ve just launched a new borrower process which we expect to be clearer and faster for new borrowers and we have launched a new homepage with easier navigational features. Please keep that feedback coming in!

In the Press

The CommunityLend market launch continues to attract significant media interest and we appreciate such a positive market response to what we’re building. Here are few examples in case you missed them.

· Wall Street Journal

· Investment Executive

· Ottawa Sun

Share The Wealth
Please feel free to “share the wealth” and forward our newsletter to others who you feel could benefit from CommunityLend.


Promotion Reminder – Fees Waived Until    April 30, 2010
We continue to run a great early lender and borrower promotion, so there’s never been a better time to sign up!
It’s already free to register as a borrower or lender at CommunityLend and to help make your decision to join us even easier, from now until April 30th, 2010, CommunityLend is offering a special incentive to both borrowers and lenders!
For Borrowers:
We will rebate back ourBorrower Adminstration Fee for any borrower loan that closes between March 18th and April 30th, 2010.
For Lenders: 
We will rebate back ourLender Annual Adminstration Fee for all closed Loans in which a lender participates before April 30th, 2010 for a subsequent period of six months from the closing date of each Loan.  Click here for more details.

You can find us on:




Technorati Tags: ,,

Written by amwatts

March 18, 2010 at 11:51 am

Posted in p2p lending

Article on CommunityLend in todays Financial Post

with 4 comments

John Greenwood wrote about us on the front page of the Financial Post (National Post) today.

Written by amwatts

December 30, 2009 at 4:12 pm

Not so good news, and some great news | Zopa

leave a comment »

It is a little sad that we see Zopa US close shop apparently following the participating Credit Unions inability to adequately fund the loans.  We had always known the US Zopa was an entirely different model, with the Credit Unions being the sole lenders, and then the credit crisis came along.  Nonetheless we will miss them.

Zopa US

So while our model is doing very well in current market conditions, the US has been adversely affected in a way that just couldn’t have been predicted when we launched in the US and is no way the fault of our partners. For us, a real shame is that we weren’t able to launch the original model over there for regulatory reasons.

On a related not Zopa UK is showing double digit increases in volume since the credit crisis hit, reflecting all our belief, that the time is ripe for consumers who are seeking financial alternatives.

P2P lender Zopa reports soaring uptake as credit crunch bites | finextra

Zopa says that between July and September an average of 3700 borrowers joined per month, compared to 2500 a month in the previous quarter.

Explaining the surge, Sarah Kennedy, head, customer proposition, Zopa says: “Clearly the tightened lending criteria at the banks is helping to drive borrowers to look for alternatives.”

Written by amwatts

October 9, 2008 at 7:26 pm

What is the p2p economy?

with one comment

This quote captures the essence of what we hope to offer Canadians at CommunityLend. Its nice that it came from the Harvard Business Review, and sorry we can’t provide the full article which is subscription only.
It is only a matter of time before these digital systems close the arbitrage enjoyed by large banks, which lend at up to 15% interest but pay only about 5% on capital. Why do business with a bank when your network’s lending and savings interest rates are both 7%.

To grasp the power of such a system, imagine your local credit union with the membership and social networking capabilities of MySpace.

A simple concept worth reflecting on, for us, and for Banks. Whatever the interest rates are in Canada, the reality is that a large spread exists between loan rates, and deposit rates. The facts are clear, and, the costs that Banks’ must cover are real.

At its essence CommunityLend would like to offer a better way for everyone to share in that spread by providing a simple and efficient service.

We think its a powerful concept. What do you think?

Written by amwatts

May 1, 2008 at 9:10 pm

Posted in p2p lending

things we are reading … 04/08/2008

leave a comment »

5 Ways To Lend Money Online  Annotated

tags: p2p lending, clblog

With the United States’ economy flirting with the word “recession”, people are looking to get out of debt. Banks aren’t always eager to give out loans for things like paying off a credit card, and this situation has given rise to social lending. Some sites let you collect interest as the lender, and some simply give you the opportunity to help someone out. If you’re interested in lending money online, we’ve got five such services for you to look at.

    Written by amwatts

    April 8, 2008 at 9:31 am

    Posted in p2p lending

    P2P Lending | web 2.0 meets reality

    leave a comment »

    As we move towards launch, one of the things we watch carefully is consumer confidence and reactions to moves in the financial markets.  We believe in the opportunity for P2P Lending, and that in fact the transparency brought about through P2P Lending offers a win – win for consumers and financial services.

    Let me explain ….  first off, looking at consumer confidence, while these statistics are American, and we certainly hope that Canadians will not have the same degree of change, our economies tend to operate closely.

    Consumer Confidence Index – The Conference Board

    The Conference Board Consumer Confidence Index, which had  declined sharply in February, fell further in March.

    More interesting is examining the cause of the drop. Recently the Toronto Star ran this piece by NY Professor and economist

    They thought that financial innovations could somehow turn bad  mortgages into good securities, meriting AAA ratings.


    It seemed too good to be true – and it was. Worse, banks failed to  understand the first principle of risk management: diversification only works when risks are not correlated, and macro-shocks (such as  those that affect housing prices or borrowers’ ability to repay) affect the probability of default for all mortgages.

    My own take, that I have written about, is that the technical mechanics of interbank investments (Asset Backed Commercial Paper, ABCP) have overtaken basic common sense. Rule #1 has always been to know your customer, and … for the customer to know you. This transparency has been lost in many ways.

    The promise of P2P Lending is being re-defined
    One promise, for me at least, for social lending lies in the return to better transparency between those who lend (invest) and those who borrow.  That transparency offers something beyond just rates, and insight into the financial service.

    Consumers consider the protections they have within the regulatory environment, especially here in Canada. Until recently P2P lending has been held up as a web 2.0 replacement for traditional financial services. This is too simple an argument.

    Regulation is a fact, and probably desired (within reason) by most people. If P2P Lending is to evolve as a sustainable business that addresses the needs of all parties, then the local country regulation is a component that has to be built into the model.

    Web 2.0 has to meet reality!

    Consumers first
    At CommunityLend our vision is to build a long term sustainable service that puts consumers first, and that includes ensuring their rights and obligations are addressed within Canadian regulations. We won’t be picking on anyone in the current credit mess, not even Banks. Rather we hope to offer some insight, opportunity for conversation, and benefit to consumers, particularly users of our service. Our role is to offer a sustainable service, and largely stay out of the way where possible. We will present opportunities for qualified lenders and borrowers, that are as transparent as we can, and offer value in the eyes of the consumer.

    Thoughts and comments welcome.

    Written by amwatts

    April 2, 2008 at 1:40 pm

    Posted in p2p lending


    Get every new post delivered to your Inbox.