What is Peer to Peer Lending?

Peer to Peer Lending is one of the newest alternative routes to finance which businesses can now turn towards in order to gain some access to finance

Also referred to as P2P lending, it is the practice of lending money to businesses through online finance platforms that work to match lenders with borrowers. As the peer to peer lending companies who offer this route to finance generally operate online means they can often run with lower overheads thus providing this route to finance more cheaply than say the traditional financial institutions.

As a result, lenders can earn higher returns compared to savings and investment products offered by the high street banks, while borrowers should be able to borrow money at lower interest rates, even after the peer to peer lending company has taken a fee for providing such a route to finance.