What is a Note?

To invest in a loan through Prosper, investors purchase a “Borrower Payment Dependent Note” (referred to as a Note) for each loan they choose to fund. A Note represents an investor’s funding commitment to a loan and requires Prosper to pay investors their share of payments received from borrowers.

As an investor, you are not actually lending your money directly to borrowers but are instead purchasing Notes from Prosper. The proceeds from these Notes facilitate the purchase of borrower loans from WebBank.