P2P Lending

[Inori]

@DOS_patos @Sion

Any of yall familiar with Peer to Peer lending apps? A friend of mine informed me about these joints. I didnt even know this was a thing. You could be a lender or a borrower. Dont know if I would get involved with it personally but it seems pretty interesting and an alternative to going to big banks(if you are borrowing) and a possible investment opportunity if you are lending...

Article Intro

The way we borrow money and the way we invest money is changing. Back in the day, if you wanted a loan to pay off your car or credit cards, you’d go to a bank or a credit union, sit down with a loan officer, and wait for them to tell you yes or no as they “crunched the numbers.” Investing was always done with a traditional broker—online or in-person.

But times have changed. Instead of going to banks and brokers, we simply go to each other. That’s exactly what peer-to-peer lending is all about—helping each other, rather than relying on big banks.

That’s why around 2005, Prosper was created as a marketplace where people could lend money to one another. It benefited both sides, too. Borrowers got money without having to go through a bank, and lenders made money by loaning their funds to other people.

Since then, peer-to-peer lending has skyrocketed. One study shows that since 2006, P2P lending has seen annual growth of about 110 percent. And it doesn’t seem to be slowing down, either. With more and more marketplaces popping up every year, your options have become overwhelming.

In this article, I’ll break down some of the best peer-to-peer lending sites for both borrowers and investors. From there, you can determine which option is best for you.

Source: https://www.moneyunder30.com/peer-to-peer-lending-sites-for-borrowers-and-investors

Some of the apps the article mentions:

• Prosper
• Lending Club
• Peerform
• Upstart
• StreetShares (small business)
• FundingCircle (small business)
• Kiva (non-profit)

Thoughts??

 

[DOS_patos]

I am very familiar with them. Not all tho.
It can be a good thing once you know what your doing.

But you take on risks just like the bank would.

There's another way that slips my at the moment....actually a few. I'll post up more after I'm settled in.
A nigga been running.

 

[Inori]

I'm not with it. Not to knock it but for me I could "lend" my money to a publicly traded company on the stock market who can show me past returns, their financial statements, credit rating, management and so forth.

Now to each their own. For me I always compare what I can get relative to all opportunities available to me. Some may be big winners, others may not. Again to each their own.

Word I hear ya.

I thought it was interesting as another possible option for minority borrowers that banks might be less likely to lend money too.

Gotta do more research and I doubt I would get involved with it but I think it's definitely interesting. I wonder what the process of recoupment looks like and what assurances the lenders have.. and what are the penalties for borrowers that dont pay back etc

 

[Inori]

From that perspective of being a borrower just be careful and go through the documents with a fine tooth comb.

There might be looser rules around lending money to regular people and paying it back.

word I aint borrowing shit lol I just find it interesting and wanted to see what yall thought about it as well. Preciate your insight