Why a Peer-to-peer (P2P) lending Platform?
One common challenge when running any business is funding. For young businesses especially, getting loans through the banks can be a challenging due to a few reasons:
The lack of collateral (necessary for bank loans) Young credit history (which makes banks reluctant to loan) Imperfect financial record Long processing time
With peer-to-peer lending platforms in place, small businesses now have a new avenue to turn to, when in need of funding.
How P2P lending works?
P2P lending platforms connect the public to businesses in need of funding. Public investors can lend money to these businesses and get returns based on interest rates when borrowers repay the loans. Pros and cons of investing into P2P lending Pros Low Barrier of Entry: Low investment commitment (minimum investment of S$100, or less for some platforms) Diversification: Alternative investment products to diversify your portfolio Returns: Attractive returns …