CommunityLend.com is still in their beta phase, and has yet to fully launch yet, but they do have some interesting features that are already obvious. Like most p2p lending sites, they are striving to create an alternative to traditional bank loans, but they are also trying to take that to the next level by developing actual online communities both for borrowers and lenders.
The premise of CommunityLend is that the more competition there is for your loan, the less interest you’ll have to pay. This should really appeal to those who are trying to save money on their loans, or have been turned away by traditional lenders. While there information is not yet complete, it does appear that the site will be catering heavily to borrowers.
Lenders however will still be taken care of. We appreciated the fact that they pointed out that only a select few are allowed to take advantage of the benefits of lending in the traditional standard. By creating this type of site, they hope to open up the billion dollar lending industry to smaller investors and groups that are looking for a solid way to make money.
While it is not yet clear if there will be any restrictions for borrowers, such as a minimum credit score, the site does appear to be trying to link up borrowers with very affordable loans. The main focus appears to be on small, unsecured loans for things like paying off a wedding or managing debt, but it could conceivably be used for cars, student loans and other financial needs.
The online community feature is quite interesting and appears to be centered around the goal of bringing charitable and local organizations together online, where they will be able to reach out to those in need. Once communities are created, they are free to get new members to join, and there will be features for discussion, learning and more.
The company has already arranged for multi-million dollar funding and their About Page reads like a veritable who’s who in banking and interest business. We found their roster to be very impressive and it looks as though the company is going to be in very good hands. Even the best concepts can falter with a lack of leadership, and it appears as though CommunityLend should be able to avoid that issue.
There are no set launch dates yet, but the company has moved quickly since receiving their financing in December of 2007. Borrowers, lenders and communities can sign up for more information and news on when the official launch will take place. Given that they have built a very strong foundation so far, they should not have any problems succeeding in this market place.
We liked the ideals behind CommunityLend and wish them well on their journey to becoming a p2p lending destination. We’ll be watching with interest to see how they develop and carve out their niche in this competitive industry. It will definitely be interesting to see how they progress.
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6 comments ↓
It will be interesting to see how they handle the issues that Prosper and other p2p sites have dealt with, such as liquidity of loans, balancing risk and desire for a large interest rate with helping borrowers out with a smaller rate.
I’m always glad to see a newcomer to the P2P lending arena. I think CommunityLend will need to bring something new to the table if they are to compete with Prosper and LendingClub. It seems they are really focusing on the social aspect of p2p lending, but whether or not this will pay off for them remains to be seen.
Thanks for the post. We hope to make a difference in Canada. Just working through our regulatory approvals.
@Colin
You are welcome.
Are these guys just for Canadians?
Fantastic! I’m a Canadian and I can’t wait for the launch!
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