As this brand new means of borrowing grows in appeal, we go through the the inner workings of peer-to-peer lending
While peer-to-peer lending has been in existence since 2005, it is caught on in past times several years. A run for its money in 2015, peer-to-peer lending platforms loaned a staggering ?4.4 billion, giving the traditional lending industry.
As high-street loan providers tightened their guidelines and became more reluctant to provide following 2008 crisis that is financial peer-to-peer loan providers quickly emerged as an even more versatile and sometimes cheaper alternative.
But, you might be wondering, how exactly does lending that is peer-to-peer work? And does it really pay to choose a peer-to-peer loan over a conventional one?