P2P Lending for Beginners in 4 Minutes

Your first lesson in crowdlending in the time it takes to boil an egg.

Peer to Peer lending is "like an online dating agency for borrowing and lending money."  If you're thinking of taking your first steps, take a look at this four-minute interview from a daytime TV show. It's a good introduction for absolute beginners.

If you're thinking of taking your first steps in peer-to-peer lending, take a look at this four-minute interview from a daytime TV show. It's a good introduction for absolute beginners.

The group on the couch are talking about consumer lending (some platforms lend to individuals, while others lend to small businesses) and the benefits to borrowers are mentioned first. The investor's point of view comes in at about 3 minutes 30 seconds. Notice that peer-to-peer offers higher interest rates for lenders and lower interest rates for borrowers. This is because alternative lenders operate on a much smaller 'spread' than traditional banks would ever consider.

Notice that peer-to-peer offers higher interest rates for lenders as well as lower interest rates for borrowers. This is because alternative lenders operate on a much smaller 'spread' than traditional banks would ever consider.