The Emergence of P2P Loan Securitizations

September 23, 2014
This past year has seen an uptick in activity in the peer-to-peer commercial loan market in the U.S., which, broadly speaking, includes loans made by nontraditional financing sources to small businesses. Although there is no standard definition for what constitutes a P2P commercial loan, these loans can be as small as $10,000 but are typically less than $250,000. They are generally extended to borrowers who are either shut out of traditional financing sources or find such sources too time-consuming and intrusive or too costly.