Peerform

IndustryP2P Lending
Founded2010
HeadquartersNew York
Websitehttps://www.peerform.com/
  • Peerform is a peer-to-peer lending company, which matches prime and near-prime qualified borrowers in the United States to accredited high net worth and institutional investors on its online platform.
  • Peerform is an affiliate company of Versara Lending who acquired Peerform on November 7, 2016.
  • P2P Lending platform
    • The Peerform lending platform does not incur the overhead costs associated with formal brick-and-mortar lending institutions.
      • These savings can be passed on to borrowing and lending clients in a transparent way.
    • Peerform provides an online personal loan platform which acts as a marketplace between potential borrowers and investors who lend money.
    • Peerform only accepts accredited investors under SEC Reg D Rule 506(c) or institutional investors to lend money on its platform.
    • Borrowers are screened on a variety of factors so as to ascertain “creditworthiness”.
    • Peerform accepts near-prime (see Subprime lending) and prime borrowers with Credit Scores as low as 600 (and above).
    • Each borrower is presented a fixed APR (and fixed interest rate) with an equal repayment scheme that allows them to pay back the loan in automatic bank debits spread out over 3 years.
    • Investors choose between funding a whole loan or a fraction of a loan.
      • A “whole loan” is where a single borrower receives money from a single investor, whereas with a “fractional loan”, a loan is syndicated among multiple investors.
    • Loans range from a minimum of $1,000 to a maximum of $25,000.
  • Peerform Loan Analyzer
    • The Peerform Loan Analyzer is the algorithm used to determine if a person can qualify for a Peerform personal loan.
    • FICO is one of many factors used in determining this qualification as well as in setting the borrower's interest rate, but other factors, such as a borrower's total current debt-to-income ratio and the number of recent credit inquiries into the borrower's credit history, are taken into account among other things.
    • The Peerform Loan Analyzer also uses empirical methods instead of standard filters in determining a borrower's APR rate, which the company believes will better calculate consumer credit risk.

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