Guarenteed Return on investment with low risk loan

[profreshonal]

I have a current loan listing that recieved bids as soon as it was listed and then there has been no nore activity since.
The listing is http://www.prosper.com/lend/listing.aspx?listingID=396319.
I have perfect prosper history a great business plan and a great job and rental income the loan is not a risky loan at all. Will the activity pick up towards the end of the listing or should I withdraw and try something else?
My first loan with prosper funded the first day.

[sosocratic]

You've dropped a credit grade and are asking for twice as much money.

A person with A credit asking for 6K has about a 6% risk of default. Even at that the 9% rate you got is probably lower than people should have bid because it leaves only a 3% return on investment after the default risk is taken into account.

A person with a B credit grade asking for 12K has a baseline risk of 16% (not considering other things). Besides the larger loan and credit score moving the wrong way you are now looking for another loan to fund another career change (the one last year was also for a new job).

The loan sets off several red flags and you are asking for an interest rate that is lower than your estimated default rate. Evan having said all that I am not saying that it would be a bad loan. It sounds pretty good to me. However, you need to understand that it is not low risk and so the interest rate should be considerably higher. I would say 25% would be fair (it would leave a 10% return after the default risk is taken into account). You should probably list higher in hopes of attracting a bidding war. Many people will not bid until after you fund.

I think the answer to your question is that you satisfied some people's portfolio automatic bidding criteria and got some bids from the computers but then it is no that attractive to peopel actually reading the listing.

[profreshonal]

First off Thank You for interest and response.

I would like to start off saying I do see the credit score drop and I don't know why prosper has my credit profile down one grade when since my last loan my Fico scores from the 3 bureaus have gone up 25 points accross the board.

I still have the new job from my last listing and I have recieved my scheduled promotioins, increases and bonuses. And I dont plan on leaving my job for many years to come. The schedule is extremely flexible and you can work from home or any where. So this loan is no where near funding "another career change", I have been an engineer since I recieved my degree in 2004.

This loan is for a business which is an investment opportunity for me which will not require a lot of my time but more of my management skills and will be quite an amount of fluid cashflow, the barbers presented the offer to me based on my experience and sucess from my last business I had before I started my career as an engineer full-time (my last business was not funded by prosper or mentioned in any of the listings). I have relisted the loan with a higher interest rate at http://www.prosper.com/lend/listing.aspx?listingID=397771 which includes more information.

The reason I start out with lower rates than suggested as with my first listing, I am not a credit risk. I take my credit and well being very seriously. I also have my prosper payments automatically deducted from my account and everyone who bid and won my first listing is getting their interest out of it because I have not repayed the loan off early.

I would love for you to post or ask this question through my listing. It will give me a chance to adress these concerns to those who do read the listing. Since the listing is limited by characters. http://www.prosper.com/lend/listing.aspx?listingID=397771

[sosocratic]

I did post the questions so that you can clarify your situation. If you relist I would edit other things so that you can make that clear. I was not making accusations - just pointing out how it looks to anyone reviewing your previous listing and this one.

I'm sure you have every intention of paying this loan back and so think of yourself as low risk. I am also sure that you feel you have researched this well and that you have a high chance of success. I hope you are correct and wish you well.

However, statistically, there is about a 15% risk of you defaulting and so many people who pay attention to such things (like myself) will not bid under 25% and many not unless it is even higher. Also, many people are uncomfortable about business loands in general and cewrtainly will not be interested in a mall storefront. It is not a personal statement against you and you should not take offense. Like they say - "Its just business".

[profreshonal]

Thank You very much. I wasn't snapping at you I was really happy you gave me another perspective with your comments and I am especially happy you posted the question. I tried to answer it clearly and add info with the limitted characters to reply. But I really appreciate your posting and thank you very much if you get a chance and read my reply and dont think i have added enough info to reassure lenders. Please ask another one.

I truly understand it is just business and I am so serious about this one I am willing to raise the interest again (only if I have to) because I know this one is going to work. The barbers are already located in the mall (at different locations, after being torn apart when a new owner took over and made everyone including customers uncomfortable) and the mall is willing to give me a short term lease (1 year) to make sure it will work, I have already negotiated a lower rent than they were asking and they accepted becauseeveryhting I have proposed is exactly what they want and bringing all of the barber services back to one location will work out better for everyone while attracting new clientele from the play area an escalator entrance and exits.

Thank You again so much for you time and interest. I know this will work, and even if it doesn't I make enough money to cover it. But I am going in to make money not loose... it is a business.