You don’t have to be a big financial institution to invest in business anymore. Thanks to the peer to peer lending market, you can invest your savings into a startup you want to see grow, and get rewarded in satisfaction, and of course, interest rates.
P2P lending helping you grow your business
Since the global banking credit crisis that hit in 2008, the financial world has shifted and sought various different investing and lending opportunities. Continued distrust in the banking sector coupled with high interest rates have left businesses feeling disappointed as the high rates affect their profit margins too. Peer to peer lending has revolutionized the way we look at investment and this has particularly benefited smaller businesses looking for low rate loans averaging approx. 7%. Peer to peer (P2P) lending can really benefit a small business, as the process of application to the funds transferred into your account is quick and less painful than traditional banks. Banks are also more reluctant to finance loans to small businesses and rates tend to be rather high. This is largely due to small businesses requiring smaller loans and generally being riskier than larger, more established businesses.
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Be the bank over your own investment
As an investor P2P lending has afforded you more control over your own money. You can choose how – and with whom – you want to invest. You can opt to spread your investment to many borrowers or you can invest larger amounts to your chosen borrowers or businesses. You can also decide on the risk you are prepared to take dependent on the reason for the loan and amount invested in the loan. If the loan is slightly riskier, then the return on investment higher. There is risk also when a lender defaults on the loan as there is no safe guard to prevent this. Investing in a business also helps the economy to grow and as an investor you can also choose to invest your money in local communities or businesses. You are then left with personal satisfaction as well as financial gain. Folk2Folk in the UK aim to target local investment and loans and have to date introduced €50 million into the South West community in just two years of trading.
As CompareLend.com is the international comparator for P2P lending, you can take away the hassle of searching by allowing them to find the best platform and company for you to partner with. With CompareLend.com you can enjoy stress free browsing and less time wasting while you search for something to suit your every need.