Peer to peer lending has become one of the best methods for debt financing. It has made it possible for borrowers and loan providers to borrow or lend money without necessarily involving intermediary financial institutions. This method of financing has ensured there is sufficient formal credit. It provides a platform where the lenders can render their money to borrowers without the intervention of a conventional banking system. This platform, in simple terms, offers a market place where borrowers can access unsecured loans for a variety of uses.
One of the advantages of peer to peer lending is that loans are processed within a short period of time when compared to the time required to process loans from other lending institutions such as banks.
Why you should consider peer to peer lending
Over the last years, the number of reputable loan providers for this method of debt financing has increased rapidly. Lenders have dealt away with brokers involved in the lending and borrowing processes. Apart from being a highly seamless lending platform, there are other advantages it offers to both the lenders and the investors.
Below are some of the benefits of peer to peer lending:
-The process of borrowing is simple and quite affordable