P2P big ben london

Published on January 10th, 2019 | by Jenny


How to lend with P2P lending in 2019

As the new year comes around again, we find ourselves re-evaluating all of our practices from the previous year. We ask ourselves ‘were our techniques up to scratch?’, or ‘did we get the best that we could from that practice?’ and we often look for ways we can do things better in the year to follow.


Peer to Peer lending is a form of investing by  lending your savings or unused money to those who need to borrow the money for any reason. The loans through P2P services are deemed as ‘high risk’ loans. They are high risk loans because you are lending to people who have struggled to get a loan elsewhere. This means they have been rejected by banks and such, and find that P2P Lending is the only option left for them.


If you have been lending your money with a p2p lending service in 2018, you may have seen some great returns on your spending and have some idea on how you can get the best out of this. If you are thinking of beginning P2P Lending this year as part of a new investment resolution, read on to see how you can lend with P2P lending this year.



Use a trusted site

There are plenty of peer to peer lending sites about that claim they are the best in the business. Choosing the wrong service to lend with could be potentially harmful for your investments as less established sites can put risk to you losing your money altogether.


If a site goes bust when your money is in their system, there is little chance of you getting it back. Be wary of this when choosing a site to lend through and always look at the reviews and comments from other site users.



Don’t make all of your loans risky loans

P2P lending is risky enough as it is, but there are also additional levels of risk involved in the process which can make earning money on returns a bit slower than you thought.


Many people have the idea that they will go in and invest in the riskiest of loans so that they can get the largest returns. We recommend that you don’t do this with all of your money and instead have an even spread of risks across your loans. This will mean that whilst some of your loans will be earning you less than others, they will have the highest certainty of coming back to you.


P2P lending sites are clear about the risk and want you to be aware that the loans aren’t officially certified and there is a chance that you could lose your money altogether. This means that with higher risk loans, there is a chance the borrower will not pay you back at all.


These things are things you should consider when beginning or continuing your lending program in 2019. Remember to always use a trusted site and to think twice before lending large amounts to risky clients.

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