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{- Review : Peer Based Lending -}

Peer based lending is a new trend that is the latest iteration of micro finance. The peer based lending site peerbasedlending.com, a Lending Club affiliate, contains reviews and more information about peer based lending and the opportunities that can be found online today. Lending Club has a substantially large community of lenders and borrowers, all of whom have a tracking rating of their performance in past transactions. In general peer based lending is a win-win situation regardless of which side of the transaction you are on. As a lender the opportunity to earn higher yields on literally any sum of money, up to 12% in some cases, is obviously and attractive option.
This investment is only slightly different than a money market account an investor could open at a large bank; in that it gives the opportunity for the investor to specifically regulate the details of their investment. This can affect the fine details of the terms of the agreement such as the interest rate of the time over which the lender has to pay in addition to the specific lending candidate as well. All of these extra opportunities allow your investment to be specifically tailored to the investment requirements of the investor. This is a much more personalized process than purchasing a cookie cutter account from a large chain banking institution. Just as the rewards for investing in this system are great for investors they are also ideal for borrowers as well. The borrower in a peer based lending transaction has several advantages with a lender on Lending Club over the lender at a typical large chain bank. The first of these advantages is the overall greater ease of transaction administration; this is to say that the process is simpler and more personal because it is guided by your own specific banking needs rather than being sold banking products by a commission conscious bank employee. The fewer intermediaries and the ease of transaction all go to reducing the fees and interest rates incurred by the borrower. This boils down to no big banking infrastructure which results in more customer based infrastructure. Secondly borrowers involved in a peer based lending transaction will find that they are approved with greater ease and efficiency than at a bank. This means less down time attempting to determine loan eligibility and source of funding and more time moving forward in whatever money making endeavor lies ahead. This also means no big bank free or any big bank lines. And this of course means absolutely no arbitrary big bank cut offs for loan stipulations In addition to the ease of securing a peer based lending agreement; a borrower is able to use the resources of a peer based lending network to spread the awareness about their new business or business plan. This greater exposure could lead to additional investors desiring to finance this undertaking. These factors also certainly contribute to the ease of finding a peer based loan. It is important, however, to distinguish between ease of service use and the ability to grow and further a business plan all while securing additional funding.

See here: Peer based lending.


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