Imagine making money like E-Bay, but in the world of loans. Two years ago, if you lent me money with principal and interest from a family member or friend I would've said you are "crazy"! But today there is such an opportunity to get a loan from people who want to lend money. They are called "lenders" and these are ordinary people. These lenders could be your boss, friend, grandmother, aunt, dad, or even a stanger. Their job is to fund loans on a website called Prosper.com. Prosper was founded on the very same principal as E-Bay. Namely to allow online bidding through an auction style process of lending. Chris Larson who is the co-founder of E-Bay is the owner and founding father of Prosper.com
If you have made a lot of money selling on E-Bay or made a deal through buying that product, the same goes for Prosper.com. A person who needs a loan becomes a borrower. When I needed a loan last year, I was able to secure a loan through Prosper and get my loan in a matter of days.
The loans are given through Lenders. These "lenders" are collectively involved in purchasing the loan and funding it. So if someone needs $14,000, then it will take mulitiple bidders to secure that amount. There may be as many as 300 lenders bidding for that $14,000 loan at $50 min bids. The amount of lenders may decrease depending on the bidding amounts from each lenders. Some will bid $65, 100, $1000, or more. The limit is $25,000 per bid.
Prosper is not in the business of giving away the money. These are loans that must be repaid by the borrower within 3 years. The borrower is subject to credit preapproval to begin listing for a loan. Some may not make it to Prosper, but the ones who do make it, see it as something new and very intriguing!

Next Week: How to get a $3,000 loan

David is a Prosper Borrower since 2006 and a Lender,Group Lender on Prosper.com
Visit his site to be a lender or borrower: http://www.choicepeerlending.com