All Posts Tagged With: "Strategy"
Question Your Prosper Strategy
Prosper, a popular peer to peer lending program where prospective borrowers can request a loan up to $25,000 at an interest rate to be determine through a bid-down system by individual lenders.
Since Prosper loans are unsecured loans, if the borrower defaults on the loan, you may or may not get your money back if any at all. You are really making a bet the borrower will pay back the loan in full with interest.
The results can vary from borrower to borrower. By having a strategy in place, you can minimize your exposure to more riskier loan requests and maximize your return with loans that tend to be more safer. It is important to realize all loans have an inherent risk built in.
When building a portfolio or a strategy, you should be asking yourself questions to cover all the bases. By finding out your answers, you will have a more clearer idea of what you want to achieve.