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by Prosper on 12/3/13

It’s hard to believe it is December already. It’s been a couple of months since my last post, as we’ve been heads down and working hard on our platform as we plan for growth and increased originations. As you can imagine, we are excited about what we’re seeing on both the borrower and lender side of our marketplace. Although I was unable to get an October update up on the blog, we saw our biggest month ever in originations in that month – $50 million – and I am happy to report that November was another successful month with almost 10% growth in daily average originations over October.

In March, when I published my first monthly update here on the Prosper Blog, originations were $15.1 million for the month. This was a 60% increase over the previous month and just the beginning of the immense growth we’ve seen this year. November closes with over $46 million in loan originations, a 205% increase over March, 2013, and an astounding 369% increase over January, 2013 when the new management team took over.

By focusing on daily average originations and not trying to manage to a monthly gross originations number, we are aligning our interests with both our borrowers and lenders. Loans are originating as they fund on the platform – allowing for speedier funding for borrowers and faster bid to origination times for lenders. As of now, we are averaging only 4 days from the creation of a listing to origination (money in the borrower’s account), making us the fastest in the industry.

As a result of our strategy of not managing to a monthly growth number, you may see variable growth when looking at monthly originations based on the number of origination days in a month and some other seasonal factors. However, as you can see in the graph below, we have seen a 10% increase in daily origination numbers through November.

Daily originations chart

On a quarterly basis, with one month left, we see Q4* positioning upward still! We are excited about this increase moving into December.

Originations by quarter chart

We continue to make major improvements to the borrower experience. Over the past two months, we have built and launched a new feature that enables our borrowers to upload scanned documents directly to the website during their loan application process. Since the launch of this new feature, we have seen documents supplied more immediately, and, consequently, we are able to speed up our verification process and fund loans more quickly. See a review by Orchard on the improvement to this process. We expect an increasingly positive impact of this new functionality on the month’s performance as the process continues to improve.

You may have noticed some intermittent changes in the loan posting schedule over the past couple weeks. This is as a result of the recent borrower changes mentioned above. We are working to smooth this out, and things should be back on a regular schedule soon.

In light of recent growth, we are honored to have our parent company, Prosper Marketplace, ranked on two lists that recognize fast-growing private companies.

  • Ranked 12th on the “Fast 100,” a list of the fastest growing private companies in the Bay Area by the San Francisco Business Times. Prosper Marketplace earned its ranking on the October 2013 list with 532% revenue growth between 2010 and 2012.
  • Placed on the 2012 Inc. 500/5000, a list of the fastest growing private companies in the country.

Thanks, as always, for your feedback, comments, and suggestions. We appreciate hearing from you and are very excited about the future.

Aaron Vermut
President, Prosper Funding LLC


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29 Responses

Brad | December 3rd, 2013 at 6:51 pm

Are we going to get an update on whether or not some of the ‘Loan Description’ fields are coming back??

I’m glad you’re continually making the borrowers’ (and Institutional investors) experiences better.

I simply don’t understand why you felt it was necessary to remove ALL the fields. Have you read the “laundry-list” of complaints from retail investors on prior blogs who adamantly want some of the fields back??

We’re at a very critical juncture here…

Brett | December 4th, 2013 at 9:01 am

Any word on whether we are getting our Loan Description/ Loan Details field back?

How can you, in good conscience, ask lenders to lend money to people without any evidence of their ability to pay?!

RJ | December 4th, 2013 at 1:18 pm

Great job! I respectfully disagree with the comments complaining about loan description fields — I think you’re making the right moves for both lenders and borrowers. Keep it up!

Robert Smith | December 4th, 2013 at 2:50 pm

LOL on the “retail lenders” wanting their “Loan Description” fields back. This is a numbers game here not a see what unverifiable information a borrower will type into a field game.

Robert Smith | December 4th, 2013 at 2:51 pm

Ability to pay is in the DTI (Debt To Income) ratio.

Brett | December 5th, 2013 at 7:00 am

That’s garbage. I, like everyone else who actually read the loan requests and dont use the “Quick Invest” tool, want income and expenses.

Unverified or not, it is valuable data. My portfolio has more defaults and late payers among those who did not give that info than those who did.

Robert Smith | December 5th, 2013 at 10:47 am

Again, that info in the loan description is garbage. Borrower info in the listing has calculated DTI based upon stated income. Borrower needs to provide proof of income within the range shown otherwise, listing is pulled.

It’s all right there for you in the numbers to perform proper analysis. You have DTI, stated income (which is verified), revolving credit and location (to estimate monthly expenditures of cable, electric, phones, gas, etc…). Bottom line is borrowers lie. Numbers don’t.

Brea | December 5th, 2013 at 12:08 pm

I don’t see why you cannot make the “Loan Description” optional. It would be nice to see it, but the borrower shouldn’t have to feel obligated to leave one if they don’t want to.

Craig | December 5th, 2013 at 12:27 pm

About 3 years ago I opened accounts with Lending Club and Prosper and decided to run accounts with both. I ultimately decided to increase my Lending Club account as it was at the time a more user friendly and customizable vehicle. About 18 months later I remmebered I still had the small Prosper account and decided to close it. When i opened it I noticed to my shock that it was significiantly outperforming my Lending Club account. I reversered field and increased significnatly my Prosper account. A year later I am still getting 11% net returns on Prosper vs. 7.5% on Lending Club. One of the big differences has been the level of write-offs. Not sure anyone else would necessarily have this same experience, just reporting mine.

Robert Smith | December 6th, 2013 at 9:27 am

@Brad – You should start your own P2P site. Actually, there are some sites out there that allow you to fund more socially/P2P. Google them.
Businesses are in business to make money. Prosper and P2P died years ago. Know why it died? Because a business can’t make money off of it.

Robert Smith | December 7th, 2013 at 11:11 pm

“Unverified or not, it is valuable data. My portfolio has more defaults and late payers among those who did not give that info than those who did.”

And how do the numbers stack up on those loans? In tallying those numbers/results, I would suggest using loans from 2009 onwards as pre-2009 loans just didn’t have the proper credit model behind them.

Jeff | December 9th, 2013 at 10:08 am

I am also wondering what is happening to the loan selections. There seems to be a trend to fewer and fewer offerings. Just today (12/9/13) I am showing no featured listings and only 24 loans at Stage 1. This is making me a bit apprehensive as to where things are going. My business colleague is showing me hundreds of listings right now on Lending Club…

operationproblem | December 10th, 2013 at 6:55 pm

If these numbers are true, then it begs that we ask: “Where are all these loans that you claim you’re getting?” The loan page is as empty as I have ever seen it, and the loans that are there are of an increasingly subpar quality. I’m not even going to get into how most of them are failing to get level 3 approval…

Mark | December 14th, 2013 at 2:23 pm

12/14 only see 7 loans available. No point in putting more money into my prosper account. I was finally able to set up a Folio account only to see 0 notes available.

Order23 | December 17th, 2013 at 4:48 pm

How can this be, there are fewer loans than ever ? Also, I do want the loan description field back. Robert, if you think you can do without it fine, yes borrowers can lie, but they can also be very revealing – sometimes inadvertently – and give a further clue as to the security of the loan. Tell me how I am to reconcile a “Debt Consolidation” loan for $18000, when the numbers only show them having $2700 outstanding in loans ? I can’t so I don’t invest. Maybe if the borrower then explains why I will invest, but this requires use of the loan description field.
I have about another $150k to invest, and seriously, I’m having trouble just keeping up with re-investing what I have, so may just have to take that money elsewhere.

VOR | December 23rd, 2013 at 4:10 pm

I’m in agreement with most of the other posters. I think it might be time to start allowing higher risk loans to be available to non-institutional investors. I haven’s seen an HR loan in months.

Trader | December 28th, 2013 at 9:04 am

Agreed. I have not seen a great deal of loans over 25% in over a month. Probably since another $25 million was committed to Prosper? Most of the greater than 25% are getting scooped up in the whole loan program. As for the loan description, yes, I’d like to see it come back… but I don’t even have time to read them before the loan is funded! Just sayin’…

Mark Buzan | December 30th, 2013 at 5:40 pm

Great to see the advances you have made. Is your investing or borrowing activity limited to US citizens/residents?

Alicia | December 31st, 2013 at 11:02 am

I have to throw my 2 cents in as well because I was wondering the same thing. I’m having a hard time finding many “C” and “D” class loans. Yesterday I logged in and saw 54 “C” class available! But when I tried to view them, I continued to get an error message whether I was using filters or not.

Order23 | January 2nd, 2014 at 2:18 pm

“Employment and income provided by borrower and displayed without having been verified.” So what’s the difference exactly ?

ProsperLoans | January 3rd, 2014 at 9:38 am

@markbuzan:disqus Thanks for asking! Prosper is only available to US Residents for both borrowing and lending.

Order23 | January 7th, 2014 at 2:23 pm

When are we going to see more higher return loans becoming available ? Right now, there are no loans above 12%

Order23 | January 7th, 2014 at 2:27 pm

This from your “Become an investor” page

“Along with providing you the financial history of our borrowers, you’ll also be able to read their own personal stories and why they deserve your attention.”

So I guess you must be bringing back the description fields then.

Adam S. | January 10th, 2014 at 2:24 pm

I know this isn’t the place to post this, but I cannot remember my ZIP/security info to reset my password to login and send an email to you people… How can I regain access to my account in lieu of that?

ProsperLoans | January 13th, 2014 at 9:44 am

@ Adam, Please contact our customer service team for assistance. @ 1-877-646-5922. Thanks!

Jderek01 | January 15th, 2014 at 12:23 pm

Right, Whats the difference, if your not going to verify Income before you list the loan request then what does the DTI mean?

Jderek01 | January 15th, 2014 at 12:31 pm

So what are the numbers for December 2013? I would also like to know how your business plan deals with a High interest rate environment – Which I believe we are headed for in the near future. As rates, go up the number of people eligable for a loan will decline. I also believe all your wonderful Institutional investors are going to show you just how loyal they can be to a business partner, when they can not get loans or the default rate starts to increase.

jkeller4000 | January 21st, 2014 at 7:31 am

I wonder if proseper publishes numbers, new money vs. old money, how much cash is available in accounts ready to be given out. how much of loans are using money that was just paid back. it would be interesting to see if prosper is keeping the new loan growth up with new money deposited into prosper. or if one is falling behind the other significantly.

Robert Smith | January 28th, 2014 at 1:31 pm

It means that you invest based upon the DTI. Borrower still has to provide proof of income to Prosper. If they can’t provide proof of income that backs up the DTI then the loan request goes poof.

posted in Featured,Lenders,Prosper News 29 comments »

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Notice: Blogs and other materials posted on or linked from this page that use the name "Prosper" generally use that name to refer to Prosper Marketplace, Inc. if published before January 31, 2013 and to refer to Prosper Funding LLC if published on or after February 1, 2013.