What is P2P Lending

Peer-to- peer lending, abbreviated P2P lending, is the practice of lending money to individuals or businesses through online services that match lenders directly with borrowers, disintermediating the banking sector. Since the peer-to- peer lending companies offering these services operate entirely online, they can run with lower overhead and provide the service more cheaply than traditional financial institutions. As a result, lenders often earn higher returns compared to savings and investment products offered by banks while borrowers can borrow money at lower interest rates, even after the P2P lending company has taken a fee for providing the match-making platform and credit checking the borrower.

In today’s world of low interest rates financial institutions are taking advantage of this new, innovating asset class uncorrelated to equity and bond markets to increase diversification and target higher yields compared to other typical fixed income investments.


Tel: +44 203 205 7143
Email: info@p2plending.fund