Most Americans, and their financial advisers, either (a) don’t know what crowdfunding is or (b) still think crowdfunding is narrowly confined to Kickstarter and other rewards-based platforms. In polite company, the term “securities crowdfunding” or “investment crowdfunding” typically evokes bewilderment, derision, or fear of fraud, oh my.
Join Accredited Investor Markets Radio’s Christopher Cahill and Funding Circle’s Sam Hodges in Episode 39. They discuss how peer-to-peer lending companies have addressed a gap in credit availability to small businesses, while presenting accredited and institutional investors with opportunities to select risk levels as well as types of portfolio diversification in taking slices of loans to small businesses. The irony is that — in light of P2P’s growth — banks are proposing to partner with P2P lenders, thus taking tentative steps back into the very lending space they vacated.
Marketplace – sometimes called peer-to-peer – lending, in which retail and/or institutional investors can lend money to borrowers online without the use of a traditional intermediary like a bank, is a hot topic now in the investment world. This is particularly true following the December, 2014 IPOs of two of the largest players in the online lending space, Lending Club and OnDeck.
Explore Peer-to-Peer Lending (P2P) in Episode 29 of Accredited Investor Markets Radio with Peter Renton of Lend Academy and Accredited Investor Markets Managing Editor, Alicia Purdy. Their discussion provides a broad overview of P2P lending, including how it compares to traditional lending methods, how P2P can be a win/win for everyone and what a ‘win’ looks like, typical investment horizons, strategies for the best returns and how P2P lending can complement an accredited investor’s portfolio.
Peer-to-Peer lending (P2P), a way for borrowers and lenders to connect and receive/invest funding outside of traditional banks, is quickly moving from just another alternative investment opportunity to a bona fide trend in the alternatives world.