We are always looking for financial institutions that are actively lending to small business, as we define it, which is under about $5MM in revenues per year, because so few are. Even though these businesses account for over 50% of US employment and economic activity.
So, when we heard a prosper.com ad on the radio, we recommended them to one of our clients as a place to look.
We also tried to apply for a $10,000 business loan, even though we don’t need it. The first flag should have been that prosper.com treats all business loans $10,000 and under as personal loans, and uses personal credit scores to evaluate the loans. This is nonsense for a business loan.
C’mon man. It wouldn’t be rocket science for these people to say ‘submit your latest business p&l and balance sheet to prosper, and we’ll get back to you in less than 24 hours’. And to put this in their ad. And to stop advertising on the Fox Business Channel.
There’s an old adage in marketing that the delivery of the service should match what the advertising promises.
Looks like prosper.com hasn’t learned this lesson. Let’s hope someone from prosper.com reads this blog and responds. It would be worth their while.