Peer-to-peer lending is on average a relatively low-risk investment compared to the stock market and it is relatively easy to assess compared to picking shares – provided you arm yourself with knowledge. But it’s still, most definitely, an investment, meaning carelessness, greed, panic, pride, fear…
The process of money lending has been very profitable for thousands of years, even before computers and credit reports. For many decades now, it has become especially easy to assess borrowers and decide what interest rates to charge them. Research from Liberum and data from…
The main peer-to-peer lending risks are: Yourself (psychological risk). Not enough diversification (concentration risk). Losing money due to bad debts (credit risk). Losing money due to a P2P lending provider going bust (platform risk). Losing money due to a solvent wind down (more platform risk)….
Safe peer-to-peer lending is not as risky as the stock market. Not by a long shot. On average! However, as with the stock market, the risks in P2P lending are not uniform. Some lenders will lose a lot of money over the next half century, simply…
Here’s an overview of how you can earn an income and make money by helping others escape the banks through peer-to-peer lending. You open online accounts, and then you can lend money to people or businesses, including property owners. By cutting out the banks in…
In this guide, we explain how peer-to-peer lending performs when compared against stocks and other investments. Here’s a short summary of what you’ll learn Useful investments for most people are 1) Savings accounts, 2) peer-to-peer lending, 3) buying your own home and 4) the stock…
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*If you’re looking for research on shares and how they compare to bonds and cash (savings), the best you can get comes from three London Business School professors, Paul Marsh, Elroy Dimson and Mike Staunton. They write the Credit Suisse Global Investment Returns Yearbooks and Sourcebooks, and are the authors of Triumph of the Optimists: 101 Years of Global Investment Returns.
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