What is peer-to-peer lending?
Sometimes referred to as ‘crowd lending’, these P2P firms match up people who need money with those who can afford to put money aside. The idea behind this is to cut out the middle man (banks) and give borrowers lower rates, and give lenders higher rates. It’s often packaged as a better alternative to saving, but there’s a big caveat to that. There is no savings guarantee, so in reality, if you’re looking to lend money, this is more like an investment.