--- title: Enjoy the Return and Watch for Unemployment description: Those of us interested in marketplace lending have recently observed many pejorative headlines about P2P lending platforms. These headlines mostly reported on Lending Club’s recent difficulties, but also criticized other platforms and the P2P lending model more broadly. Very few people anticipated this kind of a problem less than a year ago as investors were ... Read More --- [![Prime Meridian Capital Management](https://www.pmifunds.com/hubfs/Branding/pmifunds-logo.svg)](https://www.pmifunds.com/) [![Prime Meridian Capital Management](https://www.pmifunds.com/hubfs/Branding/pmifunds-white-logo.svg)](https://www.pmifunds.com/) - About Us - [About Us](https://www.pmifunds.com/about) - [Recognition & Awards](https://www.pmifunds.com/awards-recognition) - [Team](https://www.pmifunds.com/team) - Our Strategies - [Investment Strategies](https://www.pmifunds.com/strategies) - [Special Opportunities Fund](https://www.pmifunds.com/special-opportunities-fund) - [Income Fund](https://www.pmifunds.com/income-fund) - [Non-Performing Loan Fund](https://www.pmifunds.com/npl-fund) - Insights - [Insights](https://www.pmifunds.com/insights) - [Events](https://www.pmifunds.com/events) - [Videos & Podcasts](https://www.pmifunds.com/video-podcast-resources) - [Contact Us](https://www.pmifunds.com/contact) [Contact Us](https://www.pmifunds.com/contact) # Enjoy the Return and Watch for Unemployment October 21, 2016 Those of us interested in marketplace lending have recently observed many pejorative headlines about P2P lending platforms. These headlines mostly reported on Lending Club’s recent difficulties, but also criticized other platforms and the P2P lending model more broadly. Very few people anticipated this kind of a problem less than a year ago as investors were competing for allocations on platforms. More often than not, it has been very challenging to purchase loans, particularly on the more established platforms. Indeed, the limiting factor for the growth of volumes has been the lack of borrowers. Platforms have had to compete with each other and ramp up marketing expenditure in order to attract borrowers. Even the biggest skeptics of the marketplace lending sector would not have imagined the extent to which the situation would change in 2016. In Q1 2016, leading platforms significantly decreased originations ([Prosper](http://www.wsj.com/articles/prosper-marketplace-to-cut-jobs-and-shuffles-executives-1462308893), 12 percent; [Avant](http://blogs.wsj.com/moneybeat/2016/04/20/avant-loan-volumes-dropped-sharply-in-first-quarter/), 27 percent) — and this was only the beginning.   [View full article at Techcrunch.com](https://techcrunch.com/2016/10/20/enjoy-the-return-and-watch-for-unemployment/) [Return to Insights](https://www.pmifunds.com/insights/) ## Subscribe today to receive our latest News & Insights! Receive our latest stories delivered monthly directly to your inbox. [Subscribe](https://www.pmifunds.com/insights/enjoy-the-return-and-watch-for-unemployment#popup-00) ## Subscribe Now **Please fill in the required fields below.** ![Prime Meridian Capital Management](https://www.pmifunds.com/hubfs/branding/pmifunds-gray-logo.svg) 2121 N. 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Any performance information shown on this website is presented net of all expenses, including management fees, performance fees and other expenses including portfolio-related expenses. Returns assume the reinvestment of all capital (including distributions where applicable) on a monthly basis. The performance data represents composite fund returns, and individual investor returns may vary higher or lower from the composite return due to timing of an investment and actual fees being charged. Past performance is not indicative of future returns. Any awards or other rankings listed on this site are not indicative of future performance.  These awards or any other rankings and/or recognition by unaffiliated rating services and/or publications should not be construed as a guarantee that an investor should or will experience a certain level of results or satisfaction if they invest with Firm, nor should it be construed as a current or past endorsement by any of our investors. 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There can be no assurance that the assumptions made in connection with any projections will prove accurate, and actual results may differ materially, including the possibility that an investor may lose some or all of any invested capital. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Prime Meridian Team", "url" : "https://www.pmifunds.com/insights/author/prime-meridian-team" }, "dateModified" : "2024-07-19T18:35:54.640Z", "datePublished" : "2016-10-21T04:00:00.000Z", "headline" : "Enjoy the Return and Watch for Unemployment", "mainEntityOfPage" : { "@id" : "https://www.pmifunds.com/insights/enjoy-the-return-and-watch-for-unemployment", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.pmifunds.com/hubfs/Branding/pmifunds-logo.svg" }, "name" : "Prime Meridian Capital Management" } } ```