The Future of financing — P2P Lending Platforms

Peer-to-peer lending is on the rise in the United States. We are building our P2P lending platform to address the needs of two groups long neglected as borrowers — college students and small businesses.

So what is peer-to-peer lending?

A report from Good Financial Cents: “Peer-to-peer lending can loosely be thought of as non-bank banking. That is, it’s a process of lending and borrowing that takes place without the use of traditional banks. And for that reason, it looks a whole lot different than conventional banking.

Peer-to-peer lending is mostly an online activity. Borrowers come to the various peer-to-peer lending websites looking for loans — and better terms than what they can get through their local bank — while investors come looking to lend money at much higher rates of return than what they can get at a bank.

Peer-to-peer lending brings borrowers and investors together on the same websites. Commonly known as “P2P”, it’s an arrangement that “cuts out the middleman”, more commonly known as the banker.

P2P lending doesn’t have all that bank branch real estate, hundreds or thousands of employees, or expensive equipment. And for that reason, you might see an arrangement that looks more like 10% loan rates, and 8% returns on your investment money.