Crowdlending,
Peer-to-peer lending, P2P lending,
is the way of lending money to individuals or businesses
through online websites that link lenders with borrowers. Since
crowdlending companies offering these services generally operate
online, they can have lower OPEX and provide the service at a
lower cost that usual banks. This is why lenders can earcn bigger
return on investment (ROI), while borrowers can borrow money at
lower interest rates. There is still the risk of the borrower
defaulting on the loans taken out from a p2p lending platform. (source)
Crowdlending started in United Kingdom back in 2005. The first
company to start this service was Zopa. After 2014, many other
companies have launched and registered at the Financial Conduct
Authority.
Crowdlending platforms are online based-websites that link borrowers and lenders (investors). Some loans can be secured with Buyback guarantee systems that some platforms warranty with a special fund they same for this purpose.
Interest rates of these investments go from 6 to 20% depending on
the risk of the investment. Payments of interests are often done
on a monthly basis.
Lending platforms make their revenue through fees collected from
borrower and sometimes, but less often, from the investors.
If you want to learn how to invest in Crowdlending and P2P
lending please find some more information in the links at the bottom.
Compared to other crowdfunding techniques, crowdlending is the
form which saw the strongest growth in Europe in 2015. Amounts
investment increased by 130% compared to the year before, reaching
8.2 million according to the 2016. This really big and promising
increase can be explained by the launch of new investment
platforms providing help to SMEs.
We hoped you likes our information on this new and alternative
investment. Do not hesitate to contact us if you have any question
or to click the links cited above. You will find great information
about peer to peer lending in Europe updated for the year 2019 and
after.
A lot of crowdlending platforms are available in the European market for you to make P2P lending and peer to peer lending investments. The most common platforms are for example:
Mintos, Grupeer, Crowdestate, Crowdestor, FastInvest, Envestio.
These platforms offer a different variety of investments going
from Real Estate loans, Business loans and Consumer loans.
Some peer to peer lending platforms now also offer full managed portfolio such as Bondora Go & Growth or Mintos Invest & Access.