A few months ago “Fast Company” magazine run an article on Prosper.com. They interviewed a few lenders and borrowers. One of the borrowers had started a new business, was very happy, and he thought of his lenders as “co-investors.”

That last remark was worrisome to me… as if he planned to pay back the loan only if his business works out.

Some lenders stated that they researched each borrower carefully before lending any money. Other lenders said that they used a simple formula: how much money to lend, at what interest rate, and at what level of borrower’s credithworthiness, without actually looking at the borrowers individually.