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The SEC’s purchase had implications that are far-reaching the P2P lending model.

The SEC’s purchase had implications that are far-reaching the P2P financing model. Lending Club and Prosper encountered registration that is significant reporting demands. These P2P that is for-profit loan had to shelf-register each loan (called a “note”) in front of any offered lender’s investment.[11] That they had to record information on each loan that is funded the SEC in a “posting health health supplement” positioned on EDGAR (the SEC’s disclosure archive),[12] therefore publicly saving the borrower’s information and disclosures for the general general general public to see.