Get rich by investing in P2P loans

Advisor for P2P loans

Get rich by investing in P2P loans. Wealth accumulation through investment P2P lending | Get a passive income and secure financial independence | optimal Use of Leverage for p2p payments

Invest from 10€ with up to 30% yield and with a little more information you can earn up to 70% yield.

Content

Advisor for P2P loans

What are P2P loans?

Where does P2P come from:

How does P2P work?

P2P loans in the low interest phase?

How to invest and who borrows the money?

Difference between P2P and P2B?

Correctly calculate the return with XIRR?

Long or short-term loans?

Platform/country and credit type Diversification?

Risks and securities?

What is the secondary market?

What is the buy-back guarantee?

What is Autoinvest?

Correlation to other capital investments?

Taxes, Regular and Alternative?

Leverage?

P2P and P2B platforms and their business models

Bondora and Bondora Grow and Go

Mintos and Invest & Access

Twino

Estateguru

Crowdestor

Reinvest24

Top 5 Investment mistakes

What are P2P loans?

P2P stands for "Private-to-Private". With a P2P loan, a private person lends money to another private person, similar to when friends or family members lend money to each other.

This explains the basic principle of P2P loans. The only difference is that P2P borrowers and lenders do not know each other and meet on a platform. This allows several micro investors to grant a loan together.

P2P loans are also known under the terms "peer-to-peer lending" or "social lending". The special thing about P2P loans is that no traditional credit institution is involved. P2P loans are not necessarily intended to make a profit, but can also support projects that have a non-profit purpose. P2P loans often have higher interest rates than those offered by a traditional bank. However, the borrower must prove his or her creditworthiness even with a P2P loan.

The risk is minimized for the individual, as several lenders join forces for a loan. Often only small amounts of credit are granted. In the case of P2P loans, it is assumed that repayment will go better if the borrower and lender know each other.

Where does P2P come from:

P2P loans are a decentralised form of lending. There are two forms for P2P loans. The first form is that private individuals act as lenders or investors and grant loans to private individuals. The second form is that companies or organisations grant loans to private individuals, in which other private individuals can invest. When a loan is granted by one private individual to another private individual, it is also called social lending. The one private person who owns something that is lent to another person has probably always existed, and there have been exact records of this since the 16th century.

But the P2P did not begin its triumphant advance until the 21st century. The breakthrough came with the right technology. Now a private borrower no longer needs to have a person in his circle of acquaintances to lend him money, but can use platforms to find people who are willing to lend money.

The lenders also have their advantages. If they only want to invest a small amount of money, they can join forces with other people willing to lend on the platform and grant a loan. The first P2P platform was Zopa in 2005 and is from the UK and is also only accessible to British people. So far, two billion British pounds have been lent through Zopa.

One year later, Lending Club and Prosper were established in the USA. Today there are hundreds of such platforms in the USA, China and Europe. At first, P2P was smiled at as a niche product, then the Lehman Brothers bankruptcy in 2008 helped P2P loans to rebound. Confidence in the banks declined and alternatives became popular. Despite a few black sheep, the popularity of the P2P platforms is unbroken.