If Prosper has going concern issues, then it’s time to step back and reassess the whole thing…put everything on hold until I can figure out if they‘re going bk or not.
What do you mean, "if"? Read Prosper's SEC filings, and you'll see that it is beyond dispute that Prosper has going concern issues. Almost two years ago, when Prosper was originating $6M+ in loans every month, its CEO stated that originations needed to increase 400-500% for Prosper just to break even. Now Prosper is originating $2M a month. Based on Prosper's own numbers in its last quarterly SEC filing, it appears that Prosper should be running out of cash pretty much any week now, absent a new infusion of cash. Prosper's VC don't seem to be in any hurry to toss more money Prosper's way, although that could change, of course. A month or two ago Prosper got a $1M bridge loan (at pretty onerous terms, IMHO). That money is likely gone now. Who knows what the future holds, but it doesn't look bright to me.
But I am wearing rose-colored goggles set on maximum though. I really really do believe there are honorable people out there who will pay their debts back.
Of course there are. In fact, they outnumber the deadbeats. Unfortunately, they only outnumber the deadbeats about 60%-40% -- which explains why the median ROI for seasoned lenders is NEGATIVE 3%.
But hey, welcome!
