Wondering why Prosper does not provide an ROI figure
DebInVenice on May 18th, 2008
There is a forum thread over on prospers.org that got me thinking about why lenders have to depend on third party sites for their ROI figures. And I'm not talking about the ROI of other lenders but your personal ROI. Prosper has all the data necessary to provide each lender with a snapshot of their ROI at any point in time. Now we could probably argue endlessly on how to calculate the ROI, how to treat late loans, accrued interest, etc.. But for most lenders a simple ROI based on cash flow would give them a reasonable number that would make sense to most folks. Prosper has all the numbers, they know how much was deposited and what was withdrawn from an account. Borrowers either pay or they don't, none of this accrued interest on an account that hasn't seen a payment in months. Principle balance could be carried at full value until it hit the limbo state of 4+ months late at which it could be estimated at something like 5% of outstanding principle (or zero percent). People understand cash and to some extent cash flow. Why do we have to track ROI ourselves and/or rely on third part sites for this information?
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