A detailed P2P Lending Guide For Beginners


It has been said that it’s never too early to start investing. Investing is important because it ensures present and future long term financial stability. The returns earned through investment can offer financial security and addition income. There are numerous ways of investing like stock, ETFs, P2P lending and bond. While a few investments can be a risk, some of it can be quite slow in terms of offering considerable returns. Among all these pools of investments, P2P lending has emerged as a most promising and unique investment way.

Here, we are sharing a detailed guide on how to invest in P2P lending for those who are interested in this investment model:

What is Peer to Peer lending?

Before, jumping to the investment procedure let us explain what exactly P2P lending is all about. Like most of the investment platform, P2P lending involves lending your money to the borrower on an agreement of a particular interest rate. However, the only twist in P2P lending is that it’s done on online platforms where the lender and borrowers can match their compatibilities.

When to invest?

As per a survey, the P2P lending industry was valued $3.5 billion in 2013 which rose to $64 by the year 2015 and is expected to reach $1 trillion by 2050. The exponential growth rate of P2P has made it clear that this investment model is here to stay. Thus, now or then any time is good to invest in P2P lending industry. However, along with the market status of P2P lending, you should also keep a look at your financial status. P2P lending comes along with certain risks like any other investing platform. This is the reason before investing you should be ensuring about the amount you are considering to invest. Only try to invest the money that you can afford to lose.

Follow a strategy:

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Once you are sure with the amount you can afford to invest, start looking for a reputed platform. Conduct detail research and do your homework thoroughly. Search for the P2P lending websites that are trustworthy and ensure the security of your investment to a certain extent. You can follow some of the top critical review sites that keep you updated with the status and performance of financial products and P2P lending platforms. The Crowed Reviewed is one such site that is rewarded for its helpful reviews. Viventor is a P2P investment platform that defines itself as a European destination for cross border investing. According to the Viventor review given by Crowed Reviewed, Viventor can be a great platform for the beginner as this marketplace offers a high-interest rate of up to 15% and the website is quite excellent in terms of ergonomics. Yet, the buyback guarantee is not equal between each originator.

To earn some great deals, you can look for numerous other platforms and check their services before investing.

Make your portfolio strong:

To make your investment portfolio strong as a beginner is quite essential. Diversifying your investment amount could prove to be the safest and smartest move. Dividing your loan investment in a small amount with differ borrowers providers you the leverage to handle sudden shocks like defaulting loan borrowers. Additionally, you should also go through the borrowers’ profile, their credit score, the purpose of taking a loan and the ability to pay you back. Make sure the platform you chose to invest guards you with a buyback guarantee.

Invest, stay and reinvest:

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 Idle money will be of no help if you looking to generate a good amount of revenue out of your investment. Investing a right and stay invested is the key to success. You need to be quite patients when your money is once invested. On raising a good amount from the investment you have raised in the past, you can reinvest this for keeping the return cycle go and grow.