We’re excited to announce Prosper has surpassed $5 billion in loans originated through its platform since inception. This follows a record quarter with $1.070 billion in loans through the platform, as well as a record daily average. It was only a year ago we crossed the $2 billion mark, and I know I speak for many at Prosper when I say we are humbled by the growth of our community in such a short period of time. And while this $5 billion milestone is a landmark for us internally, what is really important to see is how marketplace lending is completely changing lives and helping advance their financial well-being.
Hundreds of thousands of people have turned to Prosper for access to a loan. Debt consolidation continues to be the most frequent use case, with approximately 288,000 loans taken for this purpose. Here are some additional insights into our community since inception:
Home Improvement: People have been turning to us for spring cleaning and summer renovations — we have seen loans through the Prosper platform for home improvement projects such as remodels, renovations and home repair.
Many people are also taking out loans to pay for elective medical procedures such as LASIK, bariatric, dental and cosmetic surgery.
Consumers also continue to come to Prosper to borrow on their personal credit for purpose of a small business.
While it represents a small percent of our overall community, we’re proud to say that we’ve seen loans through our platform for babies and adoption—helping people realize their dreams of starting a family.
More recently, Prosper Marketplace has also pursued strategic partnerships and acquisitions to expand the company’s reach. Last month Prosper Marketplace announced that it will acquire BillGuard. The transformative acquisition is the first time that marketplace lending and personal finance management have come together to create a full suite of tools to help people make smarter financial decisions. It will be an important step in truly empowering and educating consumers to be financially secure and successful.
When Jerred Yeash and his family named their new Husky puppy “Cruiser,” they envisioned him running around the yard. Sadly, the dog was born with a physical impediment that left him unable to walk. His guardians saw him struggle as he lay on his chest, paddling the ground with his paws. Most puppies can stand and walk by the time they’re three weeks old, but others like Cruiser have such weak muscles that they’re unable to.
Jerred originally used Prosper as an investor. When he realized the expenses associated with teaching Cruiser how to walk — therapy and making their home Cruiser-friendly — he decided to turn to the Prosper community to borrow the money. Since wooden floors can be slippery and make it difficult for a dog to learn to walk, Jerred had to cover his house in Los Angeles with easy-to-grip surfaces like egg crate foam pads and rugs. After hours of therapy, Cruiser was finally able to take his first steps on his own.
“[The loan through Prosper] has given me the freedom and peace of mind to be able to take care of my dog Cruiser, who had a rough start to life,” Jerred says.
As Cruiser gained strength, he slowly learned to walk on his own and now he can do anything he tries to do. He loves playing fetch and enjoys time with his puppy friends. The loan through the Prosper platform enabled Jerred to pay for expensive therapy for Cruiser and greatly increased the quality of life for Cruiser and his family.
Today is an exciting day for our company. This morning, we announced that Prosper Marketplace will acquire BillGuard, a leading personal finance company with operations in Tel Aviv, Israel. This is a transformative acquisition for Prosper Marketplace and the industry. Until now, nobody has brought together marketplace lending and personal finance management to deliver an offering that truly empowers, protects and educates consumers. It’s also an important step in achieving our long-term vision of being a company that helps people be financially secure and successful.
BillGuard was founded in 2010 by Yaron Samid and Raphael Ouzan. The idea was born when Yaron googled an unauthorized charge on his family credit card, and saw countless others spot the same charge. That’s when he and co-founder Raphael saw the power of crowdsourcing to protect against fraud and even overspending. Since launching BillGuard, the app has amassed than 1.3 million registered users and has won almost every award in its category, including being named one of the top banking innovations of all time by Online Banking Report and a Best App of 2014 by Google.
Prosper Marketplace’s mission is to enhance financial well-being, and as we look to the future, we want to find ways beyond Prosper’s personal loan product to help people accomplish this goal. BillGuard helps us do this in a number of ways. First, it helps us create a long lasting relationship with our customers by offering them a full suite of financial tools. It also gives us the opportunity to lower our cost per acquisition, and to be in front of the customer when they are ready to make a credit decision.
In addition, we’re also welcoming an incredible group of people to the Prosper Marketplace organization. With the addition of the BillGuard team, we now have access to the impressive talent pool in Tel Aviv, a technology hub that is on par with what we have here in Silicon Valley.
The opportunity to build a team there that complements our already strong team in SF will help us further accelerate our product development.
The BillGuard acquisition follows a year of significant growth and announcements. Earlier this year, we acquired American Healthcare Lending, which has allowed to successfully extend our offering into the elective medical market, and last week, we partnered with Radius Bank to offer personal loans through the Prosper platform to the bank’s customers. The company facilitated the origination of $1.6 billion in loans through the Prosper platform in 2014 – a 350% increase from 2013 – and it expects to more than double that in 2015. To date, nearly $5 billion in loans have been transacted through the Prosper platform. In addition, Prosper Marketplace was recently named to Inc. Magazine’s 2015 Inc. 500, a list of the fastest growing private companies in America and was named one of America’s “Most Promising Companies of 2015” by Forbes Magazine.
We’re excited about our shared vision with BillGuard for the future of fintech. You can read more in the press release we put out this morning.
When most people think of Hawaii, they picture pristine beaches, surfing in warm waters and enjoying tropical drinks. That’s the life Barbara Vance imagined when she moved from the mainland to Makawao, a rural area in the eastern part of Maui. But she quickly realized the high cost of island living was too much for her to handle on her own.
“I was at my breaking point spending every penny I was making, paying bills and coming up short pretty much each month,” says Barbara. “[I had] to use a credit card for food and it just wasn’t working out. I was considering moving back to the mainland to a less expensive place.”
Then she opened a marketing letter from Prosper about personal loans and realized marketplace lending could be the solution she needed. She filled out the application quickly and easily and was approved for a loan right away.
The average American household carries $15,863 of total credit card debt, yet only about half of credit card holders pay their balance in full, according to a recent survey commissioned by Prosper Marketplace. Like many Americans, Barbara was struggling to pay off her credit card debt, but since receiving a loan through Prosper, she has paid off most of it. Barbara is thankful to the Prosper community because now she is able to worry less about her financial situation and simply enjoy living in Maui.
As the population ages, there are more people in nursing homes and more adult children caring for elderly parents too. Turning a home into a safe place for the elderly isn’t easy, and families often need to revamp their homes to accommodate adding more people to the same space. That’s what Kelli MacDonald-Risner of Maryville, Tennessee, dealt with after her mother was diagnosed with early-stage Alzheimer’s.
Kelli’s mother raised her and her sister all on her own and worked full time, but was still able to take her daughters on vacations to SeaWorld and other places. A few years ago, Kelli noticed changes in her mom’s behavior and doctors ordered tests to find out the cause — Alzheimer’s. Kelli decided that if her mother couldn’t live on her own then she belonged with her family, so she began making arrangements to move her into her suburban home near the Great Smoky Mountains National Park.
With four children of her own, Kelli and her husband already had a full house. With all bedrooms occupied, the only space that could accommodate her mother was the garage. Kelli decided to remodel it into a small “in-law” apartment, but in order to do that, she needed a loan.
Initially, Kelli’s bank approved the loan application but requested additional information. Then the bank rescinded its offer of credit, saying the loan was a “bad investment.” Kelli was even more determined to get the money so she could help her mother.
Kelli and her husband didn’t know where they were going to find the money for the remodel, but then they saw an advertisement for loans through Prosper on CreditKarma.com. They researched Prosper online and initially thought “it sounded a little too good to be true,” Kelli admits. But they went ahead and applied for a loan.
The application process was quick and easy, and within a week they had their loan. They immediately started the remodeling and in a relatively short time they had turned their old garage into a spacious apartment with a living room, kitchen, dining area, bedroom and bathroom. Kelli’s mom would retain her independence but have the security and peace of mind knowing that her daughter’s family was just steps away.
Kelli is thankful to Prosper and its community for enabling her to care for her mother at her home and to keep her family together.
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.
As of February 1, 2013, the Prosper marketplace was transferred by Prosper Marketplace, Inc. to Prosper Funding LLC, a wholly-owned subsidiary of Prosper Marketplace, Inc. From and after February 1, 2013 Prosper Funding LLC is the sole obligator of Notes offered and secured by loans made through the Prosper marketplace, including Notes originally issues by Prosper Marketplace, Inc. prior to such transfer. Prosper Marketplace Inc. contiinues to provide services to Prosper Funding LLC relating to loan and Note servicing, and may interact with borrowers and investors in relation thereto as agent of Prosper Funding, LLC. Except where otherwise noted, throughout this website "Prosper" refers to Prosper Funding LLC including acting directly or through its agents.
All personal loans are made by WebBank, a Utah-chartered Industrial Bank. All Prosper personal loans are unsecured, fully amortizing personal loans.
Notes offered by Prospectus. Notes investors receive are dependent for payment on personal loans to borrowers. Not FDIC-insured; Investments may lose value; No Prosper or bank guarantee. Prosper does not verify all information provided by borrowers in listings. Investors should review the prospectus before investing.