Since the financial crash of 2007, banks have lost their luster and alternative financing options like peer-to-peer lending have grown rapidly. Now, a new study suggests the next phase of lending's transformation will be companies like Walmart and eBay offering big loans at lower rates.
America's big banks are still deeply hesitant to lend money to most ordinary folks. But in the year's since the financial crisis knocked the legs out from under us, an alternative borrowing option has been gaining ground: peer-to-peer lending.
It's unlikely that random people will just give you the money you need to float you through your ordinary fiscal troubles. But they might make you a loan. Peer-to-peer lending, where borrowers bypass big banks and get loans directly from other individuals, is getting bigger all the time.
For those who can't get bank loans, the new business of peer-to-peer lending can be a lifesaver. Internet companies connect people who need cash with folks willing to lend -- for a fair profit, of course. Here's how it works, risks and all.
