5 reasons why you should be investing in P2P
Not on the Peer-to-Peer lending bandwagon yet? Here’s five great reasons why it should be a part of your investment portfolio:
1. Great Returns
Many of the returns projected by market leaders such as Lend Invest and Thin Cats top 10% – that far outstrips potential interest earned in many savings accounts at the moment. Peer-to-peer represents a fantastic financial opportunity.
2. Stronger Communities
The money that you invest can go to helping people and businesses in your area. People who may struggle to get a loan from the bank despite a good idea, or who do a lot of good for their local communities and deserve a chance to prove they can come good. That’s one of the biggest strengths of peer-to-peer, why it became so popular in the first place, and why it’s now seen as a real contender to high street banks.
3. Flexibility
Many P2P lending platforms have a very low minimum investment limit, even as low as £10 in places. That means that investing, and making money, is open to virtually everyone. Not only that, but the term lengths can be short, and in some cases investors have direct control over the projects their money is invested in. More power to you!
4. Lower Risk
P2P platforms put a lot of time and effort into checking the viability of the projects they take on. That means they engender a relatively low default rate – Zopa, for example, one of the largest UK platforms, averages around 0.5% through only lending to customers with a solid credit history.
5. Being Part of the Future
Peer-to-peer is revolutionising the financial industries. Along with crowdsourcing, it marks the start of a new era for people helping themselves earn, and help their friends and neighbours. Get in on the ground floor now, because this is one industry that is only going up.
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