Peer to Peer Lending

Question 1

What is peer to peer lending

Answer 1

Peer-to-peer (P2P) lending is a way for people to lend money to individuals or businesses, and receive interest in return

Question 2

What are the advantages of peer to peer lending

Answer 2

Interest rates can lower than traditional institutions.

Fixed interest rates can be organised

Question 3

What are the disadvantages of peer to peer lending

Answer 3

P2P loans generally have faster approval times in comparison to other methods.

P2P loans can offer higher returns than traditional investments, with average annual returns between 8% and 12%.

P2P loans may have less strict credit requirements than traditional loans.

Question 4

Is peer to peer lending a short term or long term source of finance

Answer 4

Short term source of finance