I thought this was a really interesting website that broke down peer to peer lending. It says peer to peer lending is just as safe as getting money from a bank; there is just as much risk involved. Essentially, P2P lending cuts out the bank. The lending and receiving money takes place between an individual needing money and one or more lending companies willing to take a risk.
-Keri Brock
http://cashmoneylife.com/what-is-peer-to-peer-lending/
I think this is a great idea to connect people who need lending with people who are able to provide the lending. Though, how do the borrowers get better rates and lenders get better returns? This seems almost impossible. Is it only referring to the difference between bank loans, CD investments, or what? Also, is this the same as micro-financing?
ReplyDeleteAll in all, it seems like a great resource to use for people who want to help a cause or for those who need cash to continue or start an adventure.
I've been interested in P2P lending and micro-lending for quite some time. There are lots of business opportunities that only need a little bit of money to start up, but aren't taken seriously by banks because of the small return on investment. However, in poor countries (or even poor neighborhoods in our own country), that little bit of money can be the difference between feeding your family or starving.
ReplyDeleteI was shocked to hear it is as safe as going to a bank for a loan. Common sense would make you think this would be risky and a scam. Makes you realize that things that seem unsafe may actually be safe and things that feel safe may actual be unsafe.
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