Marketplace lending of small? and medium?sized enterprises

Research Summary When evaluating Internet-based loan project of small and medium size enterprises (SME), lenders can rely on easy-to-understand risk ratings or more sophisticated financial information. We investigate decisions its effect funding success the marketplace-lending platform Zencap. The data set has been provided by Zencap includes 414 SME marketplace loans 2,196 lenders. examined provide strong support for importance simple in influencing investor behavior, while detailed information is less pronounced, controlling relevant variables. Higher interest rates appear profitable to investors without any serious concern about non-repayment. Managerial Platform managers potential borrowers are interested how encourage pledge their money platforms. influence investment find that lending pronounced than ratings. Platforms base other entrepreneurs'