You may as
well know you can earn money online by being a Virtual Assistant of someone
else. Meanwhile, you can instantly borrow money from banks and lenders online.
With just a few clicks, you're there.
But did you
know you could borrow money from different online users using P2P lending?
Welcome to
the future!
Let's Define It
P2P or
peer-to-peer online lending companies use the money of savers and let borrowers
use them. The borrowers are carefully selected. Most borrowers include normal
people, small businesses and landlords. Without the need of banks and building
societies, savers and borrowers are given a better rate.
While P2P
lending platforms take a small cut, it is not as huge as banks would charge.
Disadvantages
While this
all sounds good, P2P is not without its flaws
The local
government will not back any losses from your savings if the P2P platform makes
a flaw.
Most bank services are covered by the Government-sponsored Financial
Services Compensation Scheme which would guarantee the first £75,000 held in a
standard account.
Crowdfunding Vs. P2P Lending
Services
provided by Zopa.com, RateSetter, LendingWorks and others provide money for any
reason.
Clients only need to fulfil the necessary requirements to ensure they
can repay their rates at the intended time.
Most people
mistake P2P lending as crowdfunding. Crowdfunding is when people invest in your
project, financing it as they believe in its success, or they find a need for
your products.
