The Prosper Diaries

Landing a loan on Prosper isn't always easy. Here's how one business owner navigated the process.

1. First attempt After signing up for a free Prosper membership and undergoing a free credit check, Erica Lyn Townshend, inventor of the Strock, posted a loan request for $25,000 at 12.5 percent interest.
   
   
2. Try, try again Townshend's listing drew some bids, but not enough to fully fund the loan. Her second request, for $9,900, was more reasonable, but the proposed 11 percent interest rate was too low.
   
   
3. Score! A third request, for $9,500 at 13 percent interest, attracted 77 bidders, and the loan was fully funded. The money appeared in Townshend's bank account two days later.
   
   
4. Paying it back Townshend will make 36 monthly payments of $320 to pay off the loan. Prosper handles collections. In return, borrowers pay 1 percent of the loan amount up front and lenders pay an annual fee of half a percent.