Top 4 Prosper alternatives for P2P lending

Prosper is a leading P2P lending platform but it might not be the best option for you. There are many Prosper alternatives that offer excellent (and different) services too. We’re going to look at the top sites like Prosper and discuss how they are better or worse than Prosper.

First p2p platform
First p2p platform
First p2p platform

As the first peer to peer (P2P) platform in the US, Prosper has long been synonymous with the industry. But P2P has expanded to a point where it may no longer be the best option for you. Some issues routinely found on Prosper include:

  • Unsecured loans with high default rates.

But fortunately for you, there are a growing number of platforms out there where you can earn the secure interest rates and low-interest debt of P2P lending without the hassle.

Prosper alternatives: the top 5 sites like Prosper

Constant: Great rates and a wide range of investment options.

MyConstant app
MyConstant app
MyConstant app

Constant is a relatively new peer-to-peer (P2P) lending platform that has become popular in the United States. It is one of the best Prosper alternatives because of its unique business model. On Constant, you can invest using both fiat and cryptocurrencies and transfer funds seamlessly between the two.

All lending on Constant is backed by borrower collateral or buy-back guarantee. They also have very short terms for locking in funds. These range anywhere from their anytime-withdrawal lending pool investments to one-year terms depending on the investment you choose.

How Constant is better than Prosper

  • Loans secured by collateral.

Ways Constant is worse than Prosper

  • Still a new company.

Funding Circle: Best for businesses and accredited investors

Funding Circle is a P2P lending site like Prosper. This Prosper alternative has been around since 2010 and has already racked up over 100,000 investors. The company focuses on finding investors for small business loans. As a Funding Circle investor, your loans will be given to established businesses that have been around for more than three years and with FICO scores above 660.

How Funding Circle is better than Prosper

  • Borrowers have instant access to funds.

Ways Funding Circle is worse than Prosper

  • Higher FICO score required for borrowers

Lending Club: Best for late repayment fees

LendingClub is one of the leading Prosper alternatives and has issued more than $50 billion in loans over the years. It has over three million investors and borrowers and allows borrowers with credit scores of 600 and above to apply for loans.

How LendingClub is better than Prosper

  • Better investor interest rates.

Ways LendingClub is worse than Prosper

  • Longer repayment term.

Peerform: A new take on an old model

Peerform was established in 2010 by a group of Wall Street Executives. It is one of the sites like Prosper that has low rates for borrowers and decent returns for investors. However, the maximum loan amount here is only $25,000.

How Peerform is better than Prosper

  • Low interest rates for borrowers.

Ways Peerform is worse than Prosper

  • Hard maximum loan amount of $25,000.

What you probably notice when researching most P2P platforms similar to Prosper is a lack of collateral.

It’s the P2P industry’s not-so-secret weakness.

When platforms are based solely on the internet and lend to borrowers across the country, it’s hard to secure loans with collateral.

Hopping across state lines and repossessing property during a default is easier said than done and it’s quite costly. In a worst-case scenario, investors are unlikely to see a cent. That’s why today many investors want a platform that offers fully-secured loans. As you may have noticed earlier, we do just that.

Get great rates without the risk with Constant

Get great rates without the risk on Constant
Get great rates without the risk on Constant
Get great rates without the risk on Constant

If risk isn’t your thing, Constant might be the best P2P lending platform for you. Among sites like Prosper, Constant stands out with its:

  • Higher APR for investors: Constant has an APR of 7.5% for investments they have on the platform. The interest rate increases as the investment term increases. Prosper, on the other hand, has an average historical return of 5.1%.

If this sounds like something you are interested in, come check us out.

The top Prosper alternatives: A roundup

While Prosper may have been the first P2P platform in the US, since the financial crisis of 2008, other sites like Prosper have stepped up to improve on the model. As banks become stricter about loans and interest rates become lower, the demand for P2P is on the rise. It’s an exciting time to be looking for alternative investments and loans.

Written by

Peer-to-peer lending built on peer-to-peer technology. Refer & Earn $10 myconstant.com/referral | Website myconstant.com

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