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Advantages and Main Risk in P2P Lending
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Advantages and Main Risk in P2P Lending
P2P has been around for a while since it became a mainstream concept in 2005. It is basically a platform that hooks up lenders to the borrowers. There are no middlemen in this system. The company that hosts the P2P business generates impressive gains from the lenders and the borrowers by charging service fees. Another advantage of this is that both lenders and borrowers also stand to gain. The lenders get the needed financial support and the borrower also makes a profit for helping. The main risk is when those who take the funds default on the repayment plans. So it's the best way to make money online as far anyone is concern.
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