5 facts about peer-to-peer lending you never knew
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The term "peer-to-peer" lending, which is abbreviated as "P2P" for "peer-to-peer," refers to a concept that uses an online marketplace to link investors with borrowers, who can be either people or corporations. Lending between individuals through online marketplaces is also frequently referred to as "crowdlending." It does this by removing the need for conventional creditors like banks and finance companies to function as intermediaries, which is made possible by the utilisation of technology to directly link borrowers and investors.P2P providers can provide lower prices to end consumers since they do not have the overhead expenditures often connected with a middleman (borrowers and investors). Peer-to-peer lending provides borrowers with many of the same benefits that are given by online lending platforms. These benefits include quick and flexible access to company capital at competitive rates. In the meanwhile, the platform for P2P lending generates money by charging service charges on each loan.
5 Facts about p2p lending you never knew
1. Great and stable returns on investment
P2P lending investing offers great and stable returns on investment. For example, investing in property backed loans like the ones offered by Raizers or Estate Guru, you can expect to yiled 10% - 12% a year litarally risk free. The investment is secured by low LTV (loan to value) and property itself. If something goes wrong, you can always count in collecting your money as the platform will take ownership of the real estate, sell it and return your money. Check out our begginers guide to p2p investment here.
2. Manage your investments online
There will be no in-person meetings. All your investments will be done from the comfort of your home. You can register, go through the onboarding and make your investments via webrowser or app on your phone. Some great p2p investment platforms with apps are:
3. Opportunity to invest starting as little as 50 EUR
Most investments make sense only if you have large sums to invest. Most investment opportunities at your locak bank branch requires minimum of 10 000 EUR investment. However, p2p lending investing offers great investments starting at as little as 50 EUR providing you with a chance to save money and earn passive income irrespective of your income. You can invest in real estate with Bulkestate, invest in peer-to-peer loans with Lendermarket, in business loans with Debitum Network, or in any other platform you can find on our Sneakypeer approved p2p investment platforms. Learn more about how Sneakypeer scoring of p2p platforms works here at how Sneakypeer works page.
4. Your investments are safe
When investing with p2p platforms you are protected by European Crowdfunding Regulation. Platforms operating withing the European Union follow strict guidelines and are constantly monitored by authorities and p2p enthuasists like Sneakypeer. This all means that the days p2p scam platforms are over! In addition to that, industry leaders like Mintos, provide guarantees to non-proffesional investors up to 20 000 EUR.
5. Peer-to-peer lending is getting better every day.
The overall quality of the investment experience is always being looked after by p2p platforms. They use technology to guide investors making it easy to become a investor, even if you never tried p2p lending before. Try auto-invest tools to make your road to passive income even smoother.
The bigger the stakes, the greater the potential reward. This idea is adhered to by the majority of current investment products. P2P lending solutions are becoming increasingly available as more and more people across the world search for alternatives to conventional financial institutions that provide higher returns.