More and more people are starting businesses everyday and with that comes a need for financial assistance. In the current economy, banks are less likely to approve your loan request unless you have stellar credit and have a top notch business plan, why not try p2p lending and borrowing instead.
Take for instance, Prosper. Prosper is a p2p lending and borrowing company that connects more than 1.7 million customers every month. The company has helped fund more than $500 million in personal loans since they were founded. The basic of Prosper is this: either invest your money at a rate of 5.52%-9.09% or borrow money with an APR of 6.73%.
Borrowers simply choose an amount they will need, what it’s purpose is for, and post a listing of sorts. Investors can then view these listings and invest in those that match their criteria. After investors and borrowers are matched, the loan is funded and fixed monthly payments are made, with the investor receiving a portion of the payments.
Lending Club, also a p2p lending and borrowing company, has helped thousands of investors find businesses to invest in. The company offers investors a return rate of 5.47% to 10.27%, depending on the type of loan. Borrowers at Lending Club have to meet a more stringent criteria than those at Prosper. Lending Club is not just in the p2p business, they also offer a wide variety of financial products, including:
- 401k Rollovers
- Traditional Retirement Accounts
- Self-Employed Retirement Accounts
- ROTH Retirement Accounts
- IRA Transfers
There are many reasons why you should go with a p2p lending and borrowing company. Security is never an issue: Both Prosper and Lending Club use the highest security protocols possible for financial data transfers. For investors, you will have a monthly cash flow with low volatility. And for qualified borrowers, you will have a better likelihood of being approved than with a national chain bank. The choice is simple.