What is P2P Lending?
Peer to Peer lending, or as it is commonly referred, P2P lending, is a key feature of the Loanbyte platform, but there can be a lot of confusion around what it actually is.
In simple terms, P2P lending matches people who have money to invest, with people who are looking for a loan.
P2P lending involves borrowing money without going through a traditional lender such as a bank or credit union. It can be used by individuals or companies that need a personal or business loan and the money comes from investors who can also be individuals or companies.
Why is the advantage?
The advantages of P2P lending for the borrower is that it removes the need to go through the rigorous process that is usually associated with getting a loan. Forms, terms and conditions plague the traditional lending system, and P2P lending gets rid of these areas that slow down the process.
For the lender, the benefit is that the loans generate income in the form of interest, which can often exceed the amount interest that can be earned by traditional means.
Where Loanbyte fits in
Loanbyte takes it a step further, by allowing multiple investors to combine in one transaction, as it is understood that one investor might not always have the funds to service a particular loan. Loanbyte also acts as a facilitator in this process, with the investor and borrower agreeing on a interest rate between themselves.
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