Peer-to-peer lending, sometimes referred to as “social lending”, allows individuals to borrow and lend money without the intervention of standard or official financial institutions, like banks.
FinTech Global Resources Inc., encourages people to try it out and see the possibilities and advantages of this money lending service especially made to benefit both parties.
With P2P gaining momentum, the curiosity surrounding this type of financing is on an all-time high. To easily understand and break it down, here are five things to know about P2P lending:
- It’s hassle-free.
What’s good about P2P lending is that it avoids all the document-related hassle that are normally experienced in the traditional means of getting a loan. P2P works a little similar—only that borrowers get the money faster, and lenders get their return of investment right away.
- It’s a win-win process.
P2P is an alternative from the traditional means of getting a loan from financial institutions, such as banks or lending companies, so it makes it more flexible. Both lenders and borrowers can simply set their own terms, agree on them, and push through. Lenders can easily adjust the interest rates depending on the borrower’s financial profile. Borrowers, on the other hand, can request for minimal amount at a time to ensure a hassle-free process. Everybody wins.
- Hello flexible fees!
In traditional money lending methods, there are always various hidden fees that clients usually find out late. In P2P lending, the fees are more flexible and lower than the usual. Both parties can enjoy not having to pay extra and unnecessary fees, since they only communicate with each other.
- It’s user-friendly.
Complicated and financially-technical heavy terms surround the usual transactions in availing loans or investments in financial institutions. P2P lending simplifies this transaction. The process becomes easier and simpler for both parties.
- Enter into a new community
Talking about finances can be challenging, but it is always good to be part of a group of people or community that tackles financial decisions. The P2P community is a great avenue to learn more about financing, as people are open to talk and share their practical tips and suggestions when handling money. One of the leaders in this industry,