An idea whose time has come

"Getting a payday cash loan from another person is an idea whose time has come. I'm surprised no one has thought of this before! My favorite thing about peer to peer lending is how it connects people to other people, rather than some big mysterious institution. YadYap seems like a company that is trying to put the payday loan industry into the hands of the people, which ensures that payday loan interest rates will be determined by fair market rates - an awesome idea, especially given the history of online pay day loans."

—Jana R., Centerville, UT

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Payday Peer to Peer Lending

YadYap is a peer to peer lending platform structured in an auction-style format. Borrowers seeking a payday loan create an individualized borrower profile and make a loan request. Profiles can include information about the borrower and the reason for requesting the loan, or they can remain generic. Borrowers are rated according to risk based on third-party credit history and their YadYap payment record (YadYap Score). Paying YadYap loans back on time ensures a better YadYap Score and lower YadYap interest rates in the future.

YadYap lenders then search through borrower profiles and decide which peer to peer loan they’d like to fund. They can fund one single loan or diversify among several borrowers. YadYap lender’s then bid upon the selected loans and fund the loans they obtain through the auction. At YadYap, lender are advised to diversify their YadYap portfolio to further reduce their exposure to potentially bad loans. Because lenders will be looking to minimize their risk, less risky borrowers will attract more bids and receive lower interest rates.

With cash advances, time is of the essence

Because YadYap focuses solely on short-term credit, auctions last just 24 hours. However, the auction does not delay the money being deposited in to the borrowers account because borrowers will agree to standard rate peer lending loan documents before the auction begins and their money will be deposited to their bank account the next banking business day. Repayment of the loan is typically required between 8 and 35 days after funding. The idea is to get the money into the hands of borrowers as quickly as possible and give YadYap lenders a speedy return on their investment. Borrowers can pay their loans back early. Interest is accrued only for the amount of time they used the loan, so early payment saves borrowers money.

P2P lending

Most YadYap lenders want to experience a quick turnaround on their investments. The peer to peer lending industry has seen a rise in secondary markets where P2P loans are sold for by lenders in order to generate liquidity. At Yadyap, however, quick liquidity is built into our business model because payday advance loans are naturally short-term. Our program is designed so that when a loan performs, YadYap lenders receive a quick return of their money and the interest earned on those amounts. This allows them to fund more loans and earn additional returns by funding additional loans, making everybody happy.

At the present time, YadYap and its affiliates are the only lenders lending through the YadYap platform. We anticipate opening up the YadYap platform to outside lenders in the near future. If you are interested in person to person lending, you can learn more about becoming a YadYap lender by going to the Lending on YadYap page.