Why Invest in P2P Lending?

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Why P2P lending?

Many people are new to peer-to-peer (P2P) lending as an investment option. Questions arise. Is it trustworthy? Does it fit my needs as an investor? Who else has invested in it?

All valid concerns. Nearly no one wants to jump in blind when it comes to investing hard-earned money. Not billionaires, not angel investors – even they do extensive research prior to investing. People want examples of successful P2P investors and whether P2P lending works for their portfolio.

You’d be surprised by how flexible this form of alternative investment is.

Let’s start with individual or retail investors. Why is a relatively new investment opportunity so appealing to this segment?

The financial market can strike one as tangled, complicated, and unpredictable. Where does one even begin?

P2P lending can feel like a breath of fresh air as it offers a much simpler concept. Basically, it is a form of alternative investment where investors collectively fund loans and earn interest-based earnings in return. Think of P2P lending as profitable crowdfunding! Where crowdfunding projects usually support charities and artistic ventures, P2P lending lets you collect attractive returns.

Related: 4 Easy Ways to Double the Money You Make

Also, compare P2P lending with stock investment. Navigating the stock market requires expertise and research. Credible P2P lending platforms perform all the necessary due diligence and credit assessment to guide your investment choices, which saves time.

You still need to do some of your own research though, so you can decide for yourself which businesses you want to invest in. But overall, P2P lending jargon is more accessible compared to other investments.

Other bonuses?

The affordable entry. At P2P lenders like Funding Societies, you can invest in each small business with as little as SGD 100. P2P lending is also potentially profitable, with returns up to 14% per year.

It’s easy to see why individual investors are seeking alternative investments like P2P lending. Through it, you have the potential to make passive income with ease and you could higher returns from lower capital.

More and more, P2P lending is gaining popularity. Respected media outlets such as Forbes have talked about its benefits.

Related: Beginner’s Guide: When Should You Start Investing and What to Do First

This article was contributed by Funding Societies.

Note: Nothing in this article should be construed as, constitute, or form a recommendation, financial advice, or an offer, invitation or solicitation from Funding Societies Pte. Ltd. to buy or subscribe for any securities and/or investment products. The content and materials made available are for informational purposes only and should not be relied on without obtaining the necessary independent financial or other advice in connection therewith before making an investment or other decision as may be appropriate.

Read also: The ABC of P2P: A Concise Guide to Peer-to-Peer Lending

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