Is Fynanz Dead?

As of today 12/25 Fynanz.com has no borrowers.  I did an initial review back in November and found only six borrowers.  Over the past month the number has dwindled to zero.  Here were a few problems with the site I noticed during the review on 11/19.  

1 – No borrowers!! In fact as of 11/19/2008 there is a total of SIX borrowers. (None Today!)
2 – These are long term loans – there is no sale of the note for the initial year and only a possibility of option to sell the note later.. but no promise according to Fynanz.com
3 – With so little borrowers I do not see the “guaranteed fund” to be fully capable of repaying defaulted loans.
4 – There are many states that Fynanz.com is not currently licensed with.. they claim they will be adding more with time. Here’s a link to the states they are currently able to do business with -http://www.fynanz.com/help/state_licenses
5 – Low interest rates to lenders compared to other P2P lending sites.
6 – High interest rates for borrowers compared to other student loan options. Fynanz.com warns borrowers that government loans are more beneficial. “Borrowers: Before considering an OpenLoan, please exhaust federal loans, which in most cases will cost less.”

No Borrowers = No Lending = No Revenue = No Profit = DEAD 

Fynanz.com has a huge barrier to jump in order to stay a float.  Hopefully the lack of borrowers is due to the end of fall semester.  However, they better make some changes.. and do it fast!

E.M.