Disruptive Financing

The financial loan market has taken a lot of heat these days. There is not a lot of alternative loan financing for small businesses, but according to the News & Observer, peer to peer financing is starting to catch on. People who need to raise cash put bids out on the Internet for the amount they need and the interest rate that they want to pay. Different people, or those specializing in lending, decide if they want to back the loan or not. No banks, no brick, no mortar. Just another portal on the Internet making inroads into the financial market.

This is an interesting concept in a market where financing hasn't changed much in years. As George Hofheimer, chief research officer at Filene said, "There is so little innovation in traditional consumer finance that anytime something new like this comes along, it is a rarity and something to watch." So, let's watch to see if this disruption takes hold.