Technology has played an integral role in helping entrepreneurs or anyone with a cause to raise funds. The concept of peer-to-peer (P2P) lending took off during the Great Recession of 2007, when traditional banks and other institutions tightened the money they were willing to lend. Peer-to-peer lending is a new method of debt financing that allows people to borrow and lend money faster and less expensively than a financial institution.

Using technology and big data, P2P platforms connect borrowers to investors. Go to any of the peer-to-peer lending sites (two links are listed below) and discuss the pros and cons of this type of financing.

Is this something you might participate in as a lender or borrower?

Explain your reasoning.

www.prosper.com www.lendingclub.com