Funding Wonder is the latest entrant into the peer to peer lending space. The company reports it soft-launched in September of 2014 and since that time has built a “qualified small business loan pipeline of over $5 million. The company expects that number to grow to over $50 million in the next 12 months. According to information from the company they expect growth to be driven by franchise lending – and state they have channel partners that work with franchises across the country. Borrowers may raise from $20,000 to $200,000 for a term of 12 to 60 months from accredited individuals or institutional investors. According to the web site, Funding Wonder may accept non-accredited investors later in 2015. Borrowers pay a $500 listing fee. Once a loan offer is accepted, borrowers will be charged a subscription fee during the life of the loan.
“Franchise lending represents $30 billion annually in the United States but businesses seeking loans under $200,000 are underserved by traditional financial institutions,” said Funding Wonder CEO Michael Mildenberger. “This provides a great opportunity for investors who want solid fixed income returns.”
Funding Wonder was founded in 2013 and has established offices in New York, San Francisco and Miami. Peer to peer, or marketplace lending, is predicted to replace much of the lending business in coming years, challenging the dominance of more costly banks.
