The Financial Times reported recently that Wells Fargo has asked its employees to refrain from making investments on peer to peer (P2P) lending sites, stating that:
[T]he bank’s code of ethics states that staff should not have an investment in a privately held business that competes with the bank.
It is true that P2P has grown dramatically over the past five years for consumers seeking small loans for debt consolidation and purchases, and that this trend has, within the past year, grown to allow peer lending for small business.
What began as a nacent industry has captured headlines and turned heads, not just among consumers and small business owners seeking capital, but also among financial institutions who are accustomed to being the only game in town.
The article stated:
The move by Wells Fargo highlights the sometimes fractious relationship between P2P lenders and the banking industry…
At Dealstruck, we intend to do quite the opposite. If you are a small business owner that is better suited for a bank loan, we will tell you so. However, if you aren’t eligible for bank lending, we want to help you get there. Our goal is to work with our small business customers to build your credit, offering you consecutively better rates over time, with the ultimate goal of graduating you into a banking relationship.
If you are not having luck securing a bank loan, and are stuck with only high cost options, we want to help you, whether you bank at Wells Fargo or not.