Need some cash and don’t want to deal with a bank? Are you a freeformer? Or are you looking to invest in a worthwhile business or person building their dream? You can turn to Zopa, “where members who invest help members who borrow”. Started in the U.K., Zopa has branches in the U.S., Italy and Japan.

Zopa’s tagline pretty much says it all. They match people who have money to lend to people who would like to borrow money. Both parties have an opportunity to meet their goals and more. It’s the “more” that originally caught my attention. I was drawn in by the possibility of low interest, easy to obtain loans for people wanting to fulfill a dream or for those simply wanting to pay off higher interest debt.

Looking a bit closer at the forums and feedback, I’m unsure if this potentially great idea and helpful service actually works as well as the enticing marketing purports. This seems like any other service that one would use where getting a referral, talking to others’ about their experiences and learning more about the organization is time well spent.

Another similar service in the U.S. called Prosper is available. A primary difference between the two seems to center on how interest rates are determined which I had a tough time figuring out. Both services seem to offer about the same rate. Prosper uses a bidding process for profiled borrowers and lenders and Zopa uses profiles for borrowers and CDs for investors/lenders.

At this point my not-so-financially savvy head started to spin. Both services seem like they could provide a good opportunity and like any financial decision each participant will have to decide what level of risk they are comfortable with.