Peer To Peer Lending Makes Sense – This Is Why

Nov 15, 2016 Blog  Marketplace Lending , Peer-to-Peer

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Fintech has been a watched space for some time now, there are many sectors within Fintech and there sure will be many more. However, peer to peer lending specifically has been gaining some attention. There are fundamental characteristics of this asset class which are rightfully turning heads in the investment side of things. These characteristics are shorter terms, monthly amortisation and a competitive return. These are the traits of peer to peer lending which are attracting the investors.

Most retail investors wanting to allocate funds to a fixed income portion of their portfolio would turn to a public bond fund. This points out arguably the most attractive characteristic of peer to peer lending – the facility to hold a diversified portfolio of monthly amortising debt to maturity.

Previously you weren’t able to purchase bonds in small quantities. By investing in peer to peer lending, you can build a diversified portfolio of assets which is based purely on the ability of the borrower to repay their loan.

What we do see more these days is the willingness to trade volatility for predictability and with a set term, interest rate, fees and transparency.

RainFin facilitates peer to peer lending for both individuals and SME’s.

This was based on an article which you can read here.

 

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