I am still confused about the “social” aspect of Pertuity Direct’s social lending model. It seems they gather up all the money from lenders and then parcel out the money to the borrowers. Hmmm… I guess that is social to an extent and lowers the risk profile for the lenders. Well, it certainly ain’t the pure Person to Person (P2P) financial model of Prosper or the Lending Club. I have loans from both Prosper and Lending Club. Pertuity Direct turned me down, so that left me with a sour taste. However, I saw this story about Pertuity Direct giving one borrower a nice $2500 paydown of her loan:

In early 2008 I launched Wild Woman Chocolate with ample savings to finance the venture. My vision was to create a local artisan chocolate shop offering innovative and intensely gratifying products made from the finest organic, fair-trade and locally sourced ingredients. That goal is within close reach. While seeking space for the shop, I have developed a growing line of original products, built an enthusiastic local customer base, established wholesale accounts with local restaurants and secured two national corporate accounts. I leased space in a central, vibrant district of downtown Orlando and 90% of the build-out is complete. Unfortunately, the financial crisis crushed my savings and has so constricted the credit market that previous funding sources are no longer available. I must open the shop to begin generating real revenue. That requires completing the last of the construction and inspections, and purchasing equipment, bulk supplies and packaging. While the economy has weakened, the market for affordable luxuries remains strong and the interest in artisan chocolates has continued steady growth. This is evident from the number of clients who buy my products and whose demand I can’t meet until my shop is open. With Wild Woman Chocolate, my intent is to build a business based on right action, social justice and human rights through responsible choices and direct support of ethical, sustainable improvements in the industry.

Our 1st Pay It Forward, Pay It Down Giveaway has ended, and we’re happy to announce that JulesWWC has won a $2,500 loan paydown, thanks to the votes cast by our community members and readers!

Good for Wild Woman Chocolate!

Ahem… That was in May 2009. I don’t see any evidence that they have made an attempt to replicate this show of good faith. Hopefully in the near future they will and possibly change their business model a little – tweak it to benefit both borrowers and lenders alike.

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