Peer-to-peer (P2P) lending is arguably the most innovative investment model, and I’ve recently become a big fan. There are several reasons why P2P lending is worth considering, and I’ll share my top five.
1. Getting Rid of the Middleman
Platforms like LendingClub and Prosper create a direct link between lenders and borrowers—ordinary folks like us. There are no banks, no official staff, no complicated procedures—just regular people lending to one another.
What I love most is the simplicity. After the financial crisis, banks have faced a lot of scrutiny and negative feelings, and I think it’s justified. It’s refreshing to see people move away from depending on banks and instead help each other out.