Purchasing resources for Peer to Peer Lending


Directory of listings for organizations involved in Peer to Peer lending.

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401k Plans

Information on 401(k) plans.

www.business.com/finance/401k-plans/
401k Rollover

Business directory to 401k rollover information and advice.

www.business.com/finance/401k-rollover/
403(b) Plans

Resources and services for 403(b) plans.

www.business.com/finance/403b-plans/
Retirement Consultants

Retirement industry advisers and consultants.

www.business.com/finance/retirement-consultants/
Retirement Plans

Companies that provide retirement plan benefits, including 401k plans and pensions. Get information on corporate retirement plans, or how to offer retirement benefits for employees.

www.business.com/finance/retirement-plans/
401k

401(k) plans allow employees to save for their retirement by contributing a portion of their wages to an individual account. Employers can also contribute to 401(k) plans in the form of employee benefits; be sure your 401(k) vendor can manage your employees’ investments wisely.

www.business.com/finance/401k/
Peer-to-Peer Lending Education and Training

Source: /guides/peer-to-peer-lending-education-and-training-29641/

Peer-to-peer loans, also known as social lending, is people lending money to other people or businesses. The only bank involvement is to facilitate the process. Read More »

Peer-to-Peer Lending Key Terms

Source: /guides/peer-to-peer-lending-key-terms-33045/

Peer-to-peer lending is a popular option because it humanizes the money lending and borrowing experience. Rather than simply basing a decision on a credit score, in peer-to-peer lending, the borrowers are able to give more detail about why they want the money, which means that loans are also based on personal character. Read More »

Peer-to-Peer Lending


Peer-to-peer lending is gaining in popularity and it's often beneficial for both the lender and the borrower. With peer lending, borrowers can get lower rates than through a bank, while lenders often get a much higher return on their investment than they would from other investment vehicles.

Peer to peer lending sites help connect people who need money with people that have money to loan. In most cases, borrowers fill out an application that shows potential lenders their current debt to income ratio, credit score and a description of why they want a loan.

Lenders benefit from peer to peer loans by:

1. Getting a higher rate of return on their investment. While there is an element of risk with peer to peer personal loans, most people report overall success and the interest rates on their investments are higher than the usual CD or savings account rates.

2. Controlling the level of risk. Because you can view a borrower's credit score and other information, you can decide the amount of risk you want to take with peer-to-peer lending.

3. Feeling good by helping someone out. Sure, you want to get high returns on your investments, but it feels good to help others.

Get your feet wet with pooled lending peer to peer loans

In pooled lending, you contribute your money to a pool of borrowers. This reduces the level of risk you take on because it is not likely that everyone you lend to will default. This is a good way to get started with peer to peer lending.

Use peer to peer lending companies that offer direct lending

Some companies allow you to lend money directly to the borrowers. In these cases, it's your responsibility to decide whether you think that the borrower is likely to repay your loan. You have a bit more control over your money in these cases.

Consider peer to peer mortgage lending

Many peer to peer lending companies have a cap on the amount of money someone can borrow and it's not usually enough to cover the costs of a mortgage. Use a site that specializes in larger loans.
  • Many borrowers come to peer to peer lending with bad credit. It's up to you to minimize the risks faced by borrowers defaulting on their loans. They best way to do this is by diversifying the money that you loan. Instead of giving $1000 to one person, give $100 each to 10 different people.