Why Peer to Peer Lending is great for Lenders and Buyers
Peer to peer lending may seem complicated and inaccessible at first however with a bit of research you may find how p2p lending and borrowing options can greatly help your business and your savings portfolio.
Peer to Peer Lending is Accessible with Limited Savings
Depending on the type of investor you are and the platform you go with you can get some skin in the game for a relatively small investment. Many providers will accept £1000 as an initial investment for it. From this, you can expect to earn the industry average of 4-7% on the money you put on the lending market.
It Helps Promote Growth and a Stronger Economy
With widespread uncertainty due to current political events in the UK, many businesses are tapering their spending and this could impact on the economy. This is restricting where people are able to put their money and get a decent return.
Peer to peer lending offers an interesting opportunity for businesses as it is tapping into a new market that is not as regulated as the traditional banking system.
It Increases Competition for the Established Lenders
It is often said that high street banks do not reward loyalty. This is shown through the lowering of interest rates on many savings accounts. If you make the switch to investing your money in a trusted peer to peer lending provider you will be supporting an industry that is challenging traditional financial institutions, and that leads to better rates for your savings.
Find the Best Provider for You
If you’ve taken the wise choice to invest a portion of your savings in a trusted peer to peer lender, congratulations, you are well on your way to getting a higher interest rate. However, you must ensure you are going with the right provider for you. Luckily peer to peer lending advice has all the resources you need to make an informed decision.
Related Posts
Will a COVID vaccine improve peer to peer lending market? →
Financial Conduct Authority urged to ban P2P easy access accounts →
3 major risks when it comes to peer to peer lending →
