Today Canadian p2p lending site Communitylend announced that it will close the p2p lending marketplace to focus on its consumer lending business. Communitylend will continue to service existing loans; there will just be no new ones.
Quote from the announcement:
If you have been following the CommunityLend Peer to Peer (P2P) Lending story over the years you might have been wondering why we have been so quiet here here recently. The short answer is that we have been trying to decide how much more time to spend on our P2P Lending site in light of a larger and faster growing consumer lending business we also operate called Financeit™.
We have now made the decision that we will be suspending the operations of our P2P lending site so that our team can focus solely on Financeit™.
This has not been an easy decision for us but one which has come about over time because of our observation that P2P Lending, as it needs to operate within the Canadian regulatory system today, has enough headwinds blowing against it that getting to a significant scale was going to be both expensive and difficult. As we searched for solutions to these challenges as a P2P Lending operator, we kept our focus on our desired goal, to create a lending product for Canadians that gave them a less expensive and more convenient way to get an instalment loan.
We realized that we needed to get closer to where the borrowing “transaction”’ occurred instead of recruiting the borrower after the fact. People buy things in a store location (offline and online) and too often just use their credit cards and then carry balances with high interest rates. We realized that helping people at this transaction moment was the key to driving interest in our lending product. This conclusion led us quickly to focus on sales finance and starting in late 2010 we launched a market leading sales finance platform called Financeit™. Continue reading