Online lenders see cash crunch

[gdale6]

http://www.cnbc.com/2016/02/19/online-lenders-see-cash-crunch.html

A cash crunch is impeding the online lending industry's growth as the cost of borrowing grows, funds become increasingly scarce and ratings agencies maintain a cautious outlook toward the space.

Next, start-ups that have grown into unicorns originating billions of dollars' worth of loans may find themselves doing less lending or, conversely, putting more of their loans onto their own books.

[Appleman]

Thanks for sharing this information. Within the story CNBC talks about how Prosper/WebBank gave a $28,500 loan to the terrorist from the San Bernidino attack (the one that the FBI is trying to get into his iPhone). I am sure they did not knowingly lend to a terrorist but that cannot be good for business or the stock. 

[DaveInAZ]

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@Appleman wrote:

Thanks for sharing this information. Within the story CNBC talks about how Prosper/WebBank gave a $28,500 loan to the terrorist from the San Bernidino attack (the one that the FBI is trying to get into his iPhone). I am sure they did not knowingly lend to a terrorist but that cannot be good for business or the stock. 

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And the interesting thing is that Citi Bank funded 100% of that loan. I had no idea the big banks were investing in what is touted as "peer to peer" lending.

And they sure aren't cutting back on advertising/promotion - I'm getting 2-3 direct mailings per week, from Propser, Lending Club & Best Egg. But I probably look like a prime candidate for a peer to peer loan - I got a 3 yr. $5k Prosper loan in June 2014, and paid off in 1 year, and currently show 14% ($7k) CC utilization. But it's all 0% BTs or intro/promo on new cards, so those mailers go into the trash.