By Guglielmo de Stefano on 15th March 2016
The second largest marketplace lender in the US provides HomeAdvisor’s users with financing options.
US marketplace lender Prosper has signed a strategic partnership with HomeAdvisor, a home services digital marketplace in the US. According to the agreement, Prosper Marketplace has been appointed as the exclusive partner for providing homeowners access to home improvement financing through the HomeAdvisor website.
“Home improvement projects are a great way to increase the value of a home, but not all homeowners have access to home equity lines of credit as a financing option. Prosper offers people the opportunity to borrow money at rates that are typically lower than credit cards – it’s a smart financing option that can help homeowners improve their property while staying in financial control.”
HomeAdvisor is a nationwide digital home services marketplace providing more than 35 million homeowners with the tools and resources for home repair, maintenance, and improvement projects. The company lets homeowners view average project costs coast-to-coast – using a tool by the name of “True Cost Guide” – to find local pre-screened home professionals and instantly book appointments online.
As part of the partnership, homeowners will be able to research project costs using HomeAdvisor’s True Cost Guide, as well as to calculate their estimated monthly loan payments when financing a project through Prosper.
Chris Terrill, HomeAdvisor’s CEO, added:
“We’re at the kickoff of home improvement season when homeowners submit more planning and budgeting requests for kitchen and bathroom remodelling projects than any other time of year. Offering Prosper’s smart financing option strengthens HomeAdvisor’s commitment to helping homeowners achieve their home improvement goals.”
In 2015, Prosper lent $3.7bn ($1.15bn only in Q4), more than double the number in 2014, when $1.6bn was lent on the year. This partnership looks like another smart move to expand the Prosper brand reach by helping to increase awareness of its products among the millions of people using the HomeAdvisor website.
The agreement follows on from the appointment of Kunal Kaul – previously Leader of Home Loans Originations Operations Excellence at Capital One – as Executive Vice President of Operations at Prosper, last December. Furthermore last September, the platform acquired BillGuard, a personal finance analytics firm, based in Tel Aviv, which develops apps for managing, and protecting the way that consumers interact with money and with credit.
Prosper’s growth strategy is becoming increasingly clear – build a non bank financial services brand, in part by working with niche distribution platforms like HomeAdvisor.