Investors are now turning to online solutions to reach their target market, and there are now lenders who are offering financial services through the web. This is what has contributed to the increased popularity of Peer to Peer Lending (P2P) where borrowers are able to submit applications easily and within a short time.
Why should you consider a P2P investment?
By investing in peer to peer lending, you will be assured of higher returns compared to saving with banks and other financing institutions. This is so because the running costs of P2P are usually low since there are no physical branches involved. There are therefore reduced expenses in paying staff, investing in computers and paying rent among other operating costs.
The big percentage of borrowers who use P2P is made of up of individual applicants, and this means that most applications involve smaller amounts. The lending structure, therefore, helps to spread the risks among different consumers, and this helps to minimize the chances of investors losing their cash.
Freedom to diversify
The lending market is pretty diverse and apart from giving out cash to individual applicants, you can also consider small businesses and schemes requiring financial assistance. In a peer to peer investment, you can choose where to put your cash as a way of reducing risks and maximizing returns. You can choose to withdraw or reinvest the amounts you make.
Are there any drawbacks?
Just like with any other investment, you should be expecting some drawbacks when investing in P2P lending. Depending on the lender you choose, you may find yourself waiting for quite a while for the funds to be matched with the borrowers submitting applications. This means that you will not be earning interest during this period.
There are also cases where you may be moved to “lock up” you cash. This is a situation where your investment will be fixed for a given period. Accessing the funds under such circumstances may cost you some charges.
How P2P lending works
Interested consumers are provided with an easy application form that can be completed within a couple of minutes. The information provided is then scanned through an intelligent system to assess the risks involved in lending out to the involved applicant. Offers are then generated. The borrower is left to evaluate the options depending on the interest rates. Other than that, the payment terms among other features.
Best Credit SG Pte Ltd
Used to be known as Cing Dien Credit, we have now re-branded ourselves. Now we are known as Best Credit SG Pte Ltd now. Licensed to be a money lender in Singapore since 1985, we have been a licensed money lender for more than 35 years! Operating for so many years means that we have help numerous number of people with their cash difficulties.
If you are in a tight spot for cash now, you can visit our office. It is at Blk 372 Bukit Batok Street 31 #01-374 (Level 2) Singapore 650372. We will be able to provide you with a monthly loan to help you out with your problem. Unsure as to what we require or if you are eligible? That’s ok, you can call us at +65 6272 5538. Our staff will be able to advice you.
Feel free to drop by any time for a free consultation! Our doors are always open for you 🙂