What is P2P Lending?

Peer-to-Peer Lending (P2P Lending) is the practice of making loans to individuals and companies through services like SoFi, Prosper, Lending Club, among other online marketplaces.

Since these companies largely operate online, they are able to keep their operating costs low, and pass through the savings to you, the investor.

As with all things in our personal finance lives, we at Millennial Savings feel that simple is better. That’s why we have created this easy-to-follow guide for everything you need to know about P2P investing.

There are many providers in this space, but it is our opinion that Lending Robot is the clear choice for streamlining and automating the P2P investing experience.

 

Risks of P2P Lending

While P2P can offer a non-correlated, diversified income stream, it’s not without its own set of risks.

When a loan goes into default, the borrower fails to make payments on the loan, and in some cases may default on the loan. As an investor, you own the risk that the loan goes into default, and in theory, every loan you make could go into default.

The other significant risk to think about is liquidity risk – or, will you need the money you’ve loaned out anytime soon?

Why Lending Robot?

LendingRobot is a fully-automated, easy-to-use, and simple platform. It allows investors to link their Lending Club, Prosper, and Funding Circle accounts to their platform, and automatically invests your cash based on their algorithmic trading system.

LendingRobot Demo