Peer-to-peer loans use domain names as collateral.
Francois Carrillo, who runs the Domaining.com news aggregation site, has launched Lend.me, a loan marketplace for domain name owners.
It’s a peer-to-peer loan marketplace similar to Prosper and LendingClub. A key difference is that the loans are secured with domain names.
The site acts as a matchmaking site between people who want to lend money and those that want to borrow. Much like on the popular peer-to-peer sites, the borrower posts what they are going to use the money for and a plan to repay it. They also select a loan term between three months and three years.
Borrowers must offer up domain names they’re willing to place as collateral for the loan.
Lenders respond to loan requests and propose interest terms.
Lend.me doesn’t play a role other than matchmaker; the money changes hands via participating escrow services.
I’ve long been interested in peer-to-peer lending, and Carrillo has come up with an interesting twist on it. I think it’s generally a good idea. It will be interesting to see how it works in practice.
One key question: How many domain name owners who need a loan be willing to post about it “publicly”.
Lenders should also consider loan regulations in their home country and state before participating.