In Depth P2P Lending Investment Reviews
P2P Lending Review
Welcome to The P2P Lending Investment Review Site
Let’s admit it, getting financial support from banks has and probably will always be a challenge (especially if you do not have collateral to offer). And for that reason, the peer-to-peer lending sites are a big-time lifesaver for most individuals and businesses that need financing.
A p2p lending system removes the banks as an intermediary between lenders and borrowers. It provides borrowers with the chance of getting either secured or unsecured loans from willing lenders. It is important to note that the peer-to-peer lending sites majorly operate online and have lower overhead costs and are thus able to offer more returns on the investments made by lenders.
The high ROI that they offer and the flexibility in the system have seen the peer-to-peer lending system grow rapidly with a high number of sites coming up. However, it is essential to note that there is no standard set of guidelines that P2P lending sites follow hence they offer different rates of returns on investments. Some have buyback guarantee issued to lenders on the loans they give, while others do not.
Who we are?
There being an influx of peer-to-peer lending sites, it can be a challenge for you, either as an investor or borrower, to determine which site is best to work with. Without the proper knowledge on what metrics to consider before making a choice, you can easily end up with a scam P2P lending site; and this is where we come in.
At P2P lending review, we compare some of the top peer-to-peer lending sites in the market to help you to make a more informed decision. To give you the best analysis of the different sites, we consider the following factors:
- The average return on your p2p lending investment
As a lender, you would want to work with a P2P that will give you the highest return on the money you invest with them. In our review, we have listed each site and the average rate of return that it offers on the investment you make.
- Buyback guarantee
Lending out your money to someone you don’t know is a high risk. Our review highlights those sites that offer buyback guarantees on the money you invest and those that do not. A buyback is a guarantee issued by a P2P lending site that protects you from loan defaulters; if the loan is defaulted by a given number of days, the company pays you the money and the interest accrued.
- Type of investment loans
We also highlight what kinds of loans your money will be used to finance. Some sites offer loans to individuals, businesses or both.
- Loan term with each company
The P2P companies work with your money for a given period of time. You can choose to work with one that has a long loan term or one with a short loan term.
- Minimum investment accepted
We understand that not everyone has massive amounts of money to invest, and that’s why we’ve listed the minimum amount of money that you can invest in each of the companies, some accept as low as 1 euro while some accept 10 euros as the minimum investment.
If p2p lending is the path you want to take, then going through our p2p lending review is invaluable to you. The comparison we’ve made paints a clear picture of what you will be getting into and the available options. We also provide a sign-up link for every peer-to-peer lending site for you to start your investment journey today.
How to get started in P2P lending
Surviving in this modern society requires one to have a sharp mind. Employment is no longer enough to lead to a comfortable lifestyle, and even in some places, it is not possible to get an employment opportunity. On the bright side, there are several other ways through which one can make money aside from getting a job. You can either invest in cryptocurrencies, bonds, and shares or the peer-to-peer lending platforms.
If you want your money to work for you, then investing in peer-to-peer platforms is the way to go. P2P lending sites create a platform where you can lend your money to borrowers at a fee hence making profits. If you are deliberating on investing in peer-to-peer lending, then you have to have some understanding of the system. This article provides a definite path that will commence your journey into peer-to-peer lending, in a smooth manner.
What should you do when getting into peer-to-peer lending?
- Have clear goals
When making any investment decision, it is always essential to have a clear goal. The goal should help you to determine the amount of funds that you are going to invest and act as your roadmap throughout your investment journey.
First and most important, allocate a certain figure that will go into the investment. The amount should not be huge when starting to mitigate the risks associated with P2P lending. With time, you can inject more funds into your investment portfolios. The additional amount can come from the returns that you earn.
Also, have a clear picture of how much you want to earn in a month. This will help you to determine the type of loans to invest in that will give you the returns you desire.
- Chose a peer-to-peer lending platform
Once you have a clear set of goals, you can now proceed into selecting a P2P lending site. It is advisable to have several options and then narrow down to one platform. When choosing a platform to invest in, consider these factors;
- Loan options available– a good peer-to-peer lending site should have a large number of loans that you can invest in. This helps with diversifying your investments which is critical in mitigating risks.
- Buyback guarantee– a buyback guarantee protects your investments if the borrower defaults payments. You should invest in a site that offers loans that have buyback guarantees so that if the borrower defaults, the site can buy back the loan shares from you and you receive your investment back. It is important to note that different P2P platforms have different terms when it comes to buyback guarantees, study each to understand what terms it has.
- How long the company has been operational- peer-to-peer lending sites that have been in the industry for long have the expertise to handle different loan investments in the right manner, and have a better foundation to avert risks on their platforms. However, it is important to note that there are new p2p sites that are performing relatively well compared to old sites.
- Transparency and track record of the company- experience alone is not enough to warrant a peer-to-peer lending site a good investment choice. A good p2p site will be transparent on all details and will be ready to share their track record with you. Avoid working with an opaque working company.
- The average rate of returns- the higher the rate, the more the revenue that you will earn. However, you should understand that those loans that have high-interest rates usually have a higher risk.
- Finally, work with a platform that’s well known and has good reviews on sites such as Trustpilot. The P2P site should also be able to give proper customer support.
- P2P lending platforms suchs as Bondora, Mintos, Estateguru, Grupeer & etc.
- Invest in Your First Loan
Once you have a peer-to-peer platform to invest in, now focus on your investment. Deposit some money to your P2P lending site and filter through the available loans to determine which loan is the best fit for your investment.
When making your first investment, remember to invest with the least amount possible and ensure that the investment is diversified. This way, you will be able to know which loans perform better compared to others, and the next time you will be investing, you can invest more on the better-performing loans.
- Use auto-invest
Once you have manually selected your first investments, you can now make the entire investment process automated. Going into the autopilot mode will relieve you from having to check your investment portfolio now and then to make new investments. The auto investing tool will select new loans to invest in, all you have to do is set the filters, and the tool will invest according to the set filters.
It is important to note that the auto-invest tool used on different platform are not the same. You have to understand what each filter means for you to be able to create an effective auto-invest strategy.
- Monitor your investment progress
Monitoring your investment progress is not meant to increase your returns, but it is equally important. By monitoring your investment, you will be able to find out if the investment strategy you put in place is working or not. You can therefore make suitable adjustments that will make the strategy more effective.
You can set aside time to monitor your peer-to-peer lending accounts, let’s say once or twice a month. By monitoring your progress, you will also be able to determine whether you are achieving the goals that you had set or not.
The peer-to-peer industry is quite extensive, the number of loans and investment opportunities is significantly high, and you cannot miss a suitable investment option to start on. It is important to remember that peer-to-peer investing will not be a walk in the park. There are days that you might not make any profits, and in terrible days, you may even lose your investments.
As a good investor, strive to make the right investment decisions, and you will enjoy high returns.