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Peer-to-Peer Lending Education and Training

Prepare yourself for the field of peer-to-peer personal loans

By Gail L. Perry, Freelance Writer / MSW Life Coach
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. Individuals post their loan request on a peer-to-peer lending site (much like EBay) with details such as: desired interest rate, reason for loan and payback intentions. Then lenders bid on the loan requests with a proffered interest rate.

Peer lending loans are unsecured loans, which means there is no collateral requirement, but your company's credit weighs heavily in the decision process. Your credit score may affect your interest rate and/or payment amounts, if you are able to secure a lender. The concept of people helping people is not new, but it is happening again. For more peer-to-peer lending education and training, please see the following information:

1. Learn how to request a loan on peer-to-peer lending sites.

2. Find training to improve your peer-to-peer lending education and understanding.

3. Use online organizations; compare peer-to-peer lending companies to find the right one for you.

 

Learn the step-by-step of peer-to-peer loans

Investors want to feel as if they really know the person, so concise, accurate information increases their comfort in choosing to lend their money. When people or businesses place a request for peer-to-peer loans, there are certain inclusions on a loan application that can affect the number of responses received. Use reliable resources to discover how the process works.
Try: For social lending background information, see Investopedia. For foundational information with navigation tips, see SmartMoney. Cash Money Life offers a video explanation and more. For step-by-step instructions on how to use peer lending, go to eHow.

Attend training on peer-to-peer personal loans

Requesting, receiving and paying back loans are serious business. You want to seek all the training and information possible from people who know about finance. These professionals share their knowledge of the general process and system, and you learn details only people in the finance profession know. They teach you how to approach different scenarios for greater success.
Try: With several different methods of delivery and the option to customize your training, see Banker's Academy. Learn to Lend offers a free download of step-by step training courses.

Use organizations to learn what peer-to-peer lending companies offer

Several organizations participate in peer-to-peer lending. Use the resources below to investigate each one separately and make a list of the pros and cons, so you accurately compare the companies for the best match. Remember your lending organization is your business partner, so learn as much as possible about the financial details of peer-to-peer lending organizations.
Try: Uncrunch America, the effort to relieve America's credit problems, lists which companies supply different types of loans. LendingClub is a popular social lending organization that provides written and video education about social lending. Prosper explains options for loans and offers a tutorial to make a great listing.

 

  • Remember that peer-to-peer lending also utilizes collection agencies and reports to credit rating companies.

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