One of the ways that direct lending has evolved is P2P or 'Peer-to-Peer' lending. In the US and the UK there are website communities such as prosper.com which allow people to directly lend to each other by taking a small position or piece of an overall loan.
These sites, and copycats, have been barred from operating in Canada by banking and securities regulators.
Click 'play' below to hear an interesting interview from the FTM Weekly Podcast in which Tommy Cloud, Certified Financial Planner, explains P2P lending to Jerry Robinson and how he actually helps his clients obtain superior yields using the Prosper.com community.
Very interesting interview. Click here for podcast website.