Wow! It’s been an interesting month in the P2P lending world. After several months of being closed to new investment, Lending Club is now back in action and accepting new lending cash. They have also partnered with foliofn.com to provide a secondary market for loans, bringing some much needed liquidity to p2p lending. Almost simultaneously Prosper.com has entered their quiet period as a prerequisite to opening their own secondary lending market.
Several people have asked me how long the quiet period at Prosper will last. Of course I can only speculate, but it seems like it will be at least several months. Lending Club was out for about 6 months, but I would hope Prosper’s quiet period would be significantly shorter since Lending Club has already “blazed the trail” so to speak.
While I’m disappointed to see Prosper close down for an extended period of time, this quiet period is good news in several ways as well. First, by taking the risk of closing down for several months (with very little revenue coming in during that time) Prosper is showing that they fully intend to stick around. This is a necessary but painful investment in the future of their platform and the fact that they are making it shows that they are in it for the long haul. Second, when the secondary market opens, it will likely bring in more lending cash from people who weren’t so thrilled with the idea of having their money locked up for 3 years. It will also allow those current lenders who want to “get out” a means to do so. Finally, on a personal note, it’ll give me some time to catch up on things, and hopefully get some work done on lendingclubstats.com as well 
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