No doubt, peer-to-peer (P2P) lending is perhaps the most innovative among the investment models, and I’ve recently become an ardent supporter of this trend. There are numerous reasons why P2P is worth embracing, and I’m going to detail my top five here in this article.
#1 – ELIMINATING THE MIDDLEMAN
P2P lending platforms such as LendingClub and Prosper are wonderful as they establish a conduit for lenders and borrowers – ordinary individuals like us – to make loan interactions. No banks are engaged – no official staff or meetings or complex schemes – just ordinary individuals lending to each other.
What I appreciate is the simplicity of it all. After the economic collapse, banks have been severely criticized and have garnered a significantly negative perception, rightly so. It’s heartening to see individuals break away from reliance on the banking system and assist each other instead.
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