Peer to Peer lending programs have been gaining in popularity in recent years as personal debt and credit card rates continues to spiral out of control. Sites like Prosper.com have built a very successful marketplace for bringing together people who need money and people with money to lend.
Hampden Group Holdings has customers that need money. In fact we have more customers than we can actually self-fund. To address this excess inventory of customers needing loans, we could tap into traditional lines of credit from the banks, or we could use the Prosper.com model to open up our loan portfolio to individual accredited investors.
Introducing the "Let's Prosper™" Investment program from Hampden Group Holdings, Inc. This program allows individual accredited investors to participate in the lucrative sub-prime consumer loan market without creating the infrastructure needed to run an actual storefront operation. Unlike true peer to peer lending programs that are basically unsecured signature loans, we only fund vehicle title loans, providing a very secure loan, backed by a physical asset. This significantly reduces your risk of loan default and provides some recourse if a borrower stops paying.
How it Works
Hampden Group Holdings and you sign an agreement that outlines the terms of this partnership. In this agreement, Hampden Group Holdings is responsible for all the tasks associated with generation and managing the loans in the portfolio, (i.e. websites, marketing, documentation, applicable licenses, accounts receivable, collections, dividend distribution, etc.). As a partner in the Let's Prosper™ Investment program, you are responsible for the actual funding of the loan.
Once the agreement is signed, you will need to establish a joint account with Hampden Group Holdings, but only you will have signature authority to transfer funds. This account will be established with a minimum balance of $25,000 for the purpose of funding auto title loans.
Hampden Group Holdings will continue to generate auto title loans through their www.prepaidmotorsinc.com website. After all of the documentation has been gathered, Hampden Group will electronically submit the "loan package" to the Let's Prosper™ Investors for funding, based on their outstanding account balance and their sign-up position. After reviewing the loan package, the Let's Prosper™ Investor can accept the loan by transferring the funds out of their account and into our ACH Account. The Let's Prosper™ Investor can also pass on the loan and it will be automatically transferred to the next investor in line with an adequate balance in their account.
Every month, Hampden Group Holdings pays the Let's Prosper™ Investors 30% of the fees collected on the loans in their portfolio. For example, if you have funded a $5,000, 12 month vehicle title loan out of your account, Hampden Group Holdings will pay you $150 per month, or $1800 on your $5000 over the 12 month term. This equates to a 36% APR, significantly higher than the rates offered by the individuals on the peer to peer lending marketplaces and the loan is secured by the title of the vehicle. When the loan is paid off in full, Hampden Group Holdings will transfer the principal of the loan ($5,000) back into your account where you can elect to withdraw it, or put it back on the street.
How do I get Started
You must be an accredited investor to participate in the Let's Prosper™ Investment program. Once you have been qualified, you will need to sign our simple partnership agreement and establish your joint banking account. After funds have been verified in the account, we will begin sending you loan packages for approval. Every month, we will send you a statement of your investments and a summary of your portfolio along with your percentage of the fees generated.
To get started, please use the contact data provided below.
