In the past few years, a new investment method named peer to peer lending has appeared on the market, and since then millions of people started to use it. If you’re an investor and you are looking for passive income with interest rates above 10%, this type of alternative financing brings in some amazing opportunities.
What is Peer to Peer Lending?
At its core, p2p lending is a practice through which you are lending money to businesses or individuals. What makes peer to peer lending unique however is that the entire process is performed via a platform and they will match you with borrowers. The companies/people borrowing money will have to pay that amount back with interest. And that’s how you, the investor, will make money using the power of the platform economy.
What are the Benefits of Peer to Peer Lending?
The peer to peer lending or crowdlending concept comes with a very impressive set of benefits. One key benefit is that you can invest as much or as little as you want. This is also a very good way to diversify your investment portfolio. The fact that you can spread your investment across multiple low amount minimizes risks every time, making this a very interesting business opportunity.
Furthermore, P2P lending platforms generally come with a very appealing risk/reward ratio, much better than savings account with interest rates that are almost zero or the volatile stock markets.
Many investors over the last few year therefore opt for this emerging way of investing because it’s professional, reliable and it delivers a very good value.
Can You Opt for Peer to Peer Lending in Europe?
If you’re an European investor and you want to find some alternative investment options, peer to peer lending is a great idea. It helps you counter the low interest rates on savings as well as the stock market volatility. Often you can easily withdraw funds at any given time, minimizing the risk profile.
If you are interested in European P2P lending, then some of the best p2p lending platforms are Mintos, Bondora and Mintos. With their help, you can start investing in a multitude of consumer loans, businesses and real estate projects all over Europe.
The peer to peer lending concept is new, convenient and it helps broaden your approach when it comes to investing. With its help you can spread your investment portfolio over multiple platforms, while also bringing in something unique and different every time. All you have to do is to give this great concept a try right away, and you will find it very reliable and dependable no matter the situation. With help from peer to peer lending you can earn a good passive income and at the same time help out small and medium business, and people bringing their dream projects to life. It’s a mutually beneficial opportunity and one that can help push your investment portfolio to the next level.