3 of 6
BACKNEXT
Boutique Larrieux
Boutique Larrieux
Lydia Hamilton, founder of Boutique Larrieux

Milwaukee
Funding:
Peer lending site Prosper.com
Amount raised: $25,000
Launched: July 2009

Lydia Hamilton was confident she'd get a loan to open her plus-size contemporary women's clothing boutique: her credit was good, she and her husband had solid incomes, and she was armed with a 50-page business plan that impressed all the banks she approached. But the banks were only willing to offer credit cards or loans secured by hefty amounts of cash.

So she turned to Prosper.com, a peer-to-peer lending Web site that allows individual investors to extend loans to borrowers who've posted their story and credit scores. Lenders funded about 40% of Hamilton's $25,000 loan the day she posted the request; less than two weeks later, they'd fulfilled the entire amount.

"I found it very interesting that three banks said no to me, but 600 perfect strangers said yes," Hamilton says.

Individual loan amounts varied from $25 to $500, and were extended with at an 11% interest rate. Hamilton has three years to pay everything back.

Hamilton opened her storefront and Web site on March 16. "I will never use a traditional bank loan again if I don't have to," she says.

NEXT: Everlater

Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
LAST UPDATE: Mar 24 2010 | 5:16 PM ET
More Galleries
San Francisco: The best city to make things From electric motorcycles to death shrouds, San Francisco's manufacturing sector is booming. More
6 designers shaking up fashion These designers are changing the way we dress, accessorize and shop, from custom made-to-fit dresses to smart jewelry that's actually stylish. More
8 must-have travel apps Whether you've got wanderlust or an airline grievance, here are some apps to pack onto your phone. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.