And mostly, these companies are related to the IT segment. Business representatives participate in the P2P lending platform as borrowers.
Therefore, in a P2P lending platform (lending software), interest rates and conditions are usually less favorable than those offered by local banks. That is, the risk of avoiding payments is high. It is quite possible that the person to whom banks simply refuse to apply for a consumer loan due to a low credit rating or the presence of overdue debts. And the borrowers are individuals who, for some reason, cannot take a loan from a bank (or they are not satisfied with the conditions proposed by a financial institution). It is crucial to note that in 95% of cases, private investors are engaged in a P2P lending platform. If they fail to fulfill the terms of the contract, the creditor or an individual has the right to apply to the court for compulsory debt collection.
It is equivalent to the usually written commitment taken from the borrower. The platform is an intermediary but not a guarantor or equivalent participant in a mutual loan agreement.Īs a rule, the contract is kept in electronic form. P2P – is lending through special online platforms. White label P2P lending (P2P lending software) is a format of financial relationships in which the lender and the borrower agree without the participation of banking institutions. But what is a P2P lending platform, and why is it so popular? Let’s look at this in the article. White label P2P lending is common, like traditional bank loans.