How Safe is P2P Lending? ? [4 Main P2P Lending Risks Explained]

Published on May 27, 2021

Popular replays top searched Alternative Investment Strategies, the Best Investments for 2011, and Is p2p Lending Safe, How Safe is P2P Lending? ? [4 Main P2P Lending Risks Explained].

Is peer-to-peer lending safe? Most P2P lending sites present P2P loans as safe and stable investments.

Is that true or is it just a marketing gimmick to attract new investors?

In this video, you will learn about the four main risks that come with P2P lending and how to minimize them to increase the safety of your investments.

0:00 Is peer-to-peer lending safe?
0:33 P2P lending risks
0:56 Platform risk
2:41 How to minimize the platform risk?
3:54 Lender risk
5:43 How to minimize the lender risk?
6:49 Borrower risk
7:44 How to minimize the borrower risk?
8:35 Market risk
9:52 How to minimize the market risk?
10:21 8 tips to improve the safety of your P2P portfolio

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About P2P lending:

P2P Lending P2P Lending is considered a high-risk investment form, that can lead to a total loss of investor’s money. If you decide to participate in P2P lending you do this at your own risk. Each P2P platform, as well as its stakeholders, are subject to risk. Read the terms and conditions as well as the user agreement of individual P2P platforms and conduct your own due diligence to fully understand the protection and risk connected to P2P lending.

Is p2p Lending Safe

Is p2p Lending Safe, How Safe is P2P Lending? ? [4 Main P2P Lending Risks Explained].

Get A Free Loan Quote Easy And You Might Soon Own A Great Car!

Do not get hooked in debt once more because there is an easier alternative to paying them off. If this is the case, there is nothing the courts will be able to do for you. If they don’t improve, they deserve to give all their money back.

How Safe is P2P Lending? ? [4 Main P2P Lending Risks Explained], Play more full videos about Is p2p Lending Safe.

Get A Free Loan Quote Easy And You Might Soon Own A Great Car!

In life, we will get to experience making the wrong decisions from time to time. An annuitizable asset is anything that produces residual, consistent income. If you have any wealth at all then you will have seen some effect.

What is diversification? It can be defined as the act of varying your assets or properties to a multiple sources. In effect, you can reduce your risks. A simple explanation would be to put your eggs in more baskets instead of one only.

Go with INTERMEDIATE-TERM bond funds to lower your interest rate risk (losses due to interest rates going up). Go with high to medium quality CORPORATE BOND FUNDS vs. government bond funds to boost your interest income without greatly increasing your risk. To get the best Peer-to-peer lending investment look for no-load funds (no sales charges) with expense ratios of less than.25%. Why pay 3% or 4% in sales charges and over 1% a year in expenses to earn 2% to 3% in interest income with the possibility of losing money if interest rates go up in 2012 or in the years that follow?

One client was able to increase his balance by $97,500 in less than two years. He was a smart investor, with years of experience in the real estate market. But, you could make a similar deal, even if you have no experience.

If you think those questions are hard to answer then imagine a banker trying to analyze whether he is going to lend you money. With no past history of success in the same field your chances are slim to none. There are other alternatives now with Peer-to-peer lending but there too you will be labeled “very risky” and expect to pay high interest rates.

Shares have traditionally outperformed other asset groups over time. However, share markets can widely fluctuate in the short term, so any entry into the market should always be done with a long-term view of up to 10 years. Even the best managed share funds can fall if the stock market crashes or enters a severe downward cycle. As long as you ensure that you are with a reputable fund with good managers and are willing to ride the ‘waves’, your investment will do well in the long-term. If you are in the short-term, low risk category then your Investments should be in the safer, more stable areas with lower returns.

Of course, Kiva does due diligence research before adding prospective loan recipients to the pool and all of the money you put in goes toward the loan process – Kiva’s low overhead is covered by interest charges (if any) on the loans, fundraising and donations. So far, Kiva’s payback percentage has been 100%, although the microfinance industry average is 97% so there’s always a chance, however small, that you won’t get your money back.

Start early and take your time to study the right investment for you. Investments are not dangerous or risky, they CAN be but that doesn’t mean that they necessarily are! If you take your time and study thoroughly, you will find that there are plenty of low-risk options that could yield greater return that just putting your money on a savings account.

Entrepreneurs sometimes use up to $70,000 to start a business. Take for example when it comes to managing our financial resources. While you are at it, why don’t you consider gold IRA? Ask the company what their reporting policies are.

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