Business and Management

Avoid Going To Banks With Peer-To-Peer Lending

Peer-to-peer or person-to-person (P2P) is a way to borrow and lend money and provide funds very quickly in comparison to the banks and other financial institutions. The transaction is done directly between two individuals – a peer-to-peer – without going through a third party, such as a bank or broker.

They are beneficial to both the individual and there is money to be transacted. Other peer-to-peer transactions, such as charity, person-to-person philanthropy, along with crowdfunding, did form a relationship between the recipient and the donor, but not realized gains.

You may read about the benefits of P2P via this link.

crowdlending guide

Updating Old Concept

The rebirth of the old concept of financing is the result of Internet technology. Add to that is the global economic recession. Because of the recession, banks and credit unions raised the benchmarks by which the borrower qualifies for a loan. They are very leery of taking on too much debt.

During recession funds for lending dried up; credit-crunch was on. As it happens, the social lending website began to appear. This place cut out the middle man and allows people to lend directly to businesses or individuals. The lender and the borrower can choose how much to lend or borrow, which is to lend to, borrow from, and what kind of interest will be charged.