Louis Alexander

Why are more people turning to P2P lending?

We believe that more and more people are opting to invest in P2P bridging loans following an increase in trust in the market.

P2P or ‘social’ lending allows individuals to lend and borrow money from one another, cutting out the financial ‘middlemen’ such as banks and credit unions. This type of lending was once thought of as more risky, but we feel the increase in trust in the industry over the last five years has seen this type of lending grow dramatically. 

So why are more people turning to P2P lending?

For investors, the rates of return are far higher than those offered by traditional banks and investors in P2P can choose their deals; this way they know who they are lending to and what the money is needed for.

For borrowers, there is a more personal aspect to P2P lending. In situations where traditional lenders would not allow a loan to be granted, a P2P lender is able to look at the merits of the individual or property and make a decision based on common sense rather than a computer algorithm.

A P2P community is an active one, and its members are keen to exchange their experiences of both lending and borrowing. This leads to recommendations and referrals, which is a major part of the BridgeCrowd’s business structure.

More choice

On top of this, the number of P2P lenders within the marketplace has dramatically increased over recent years, meaning that there is even more choice for your investment and borrowing requirements.

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