Prosper

Prosper is one of the first peer-to-peer lending platforms in the United States, founded in 2005 and headquartered in San Francisco, California. The company connects individual and institutional investors with creditworthy borrowers seeking personal loans, home equity loans, and credit cards. Prosper has facilitated loans for over 2 million people and operates a transaction-based business model, earning revenue through origination fees (1–5% from borrowers) and a 1% annual servicing fee from investors. The platform uses proprietary credit risk models and the Prosper Rating system to price loans. Prosper also offers a home equity line of credit (HELOC) product and a co-branded credit card, expanding beyond its original P2P lending roots. The company holds an A+ rating from the Better Business Bureau.