Posted in investing

Peer-to-peer lending

Where to invest small amounts of  money?

Many people put off investing because they think you need a lot of money—thousands of euros!— to start investing. This just isn’t true. You can start investing for as little as 5 + euros per month.

Firstly i want to introduce to you P2P Lending.

Peer-to-peer lending, also abbreviated as P2P lending, is the practice of lending money to individuals or businesses through online services that match lenders with borrowers.

P2p connect people who want to invest money with people who want to borrow money.

P2P lending platforms connect borrowers to investors faster and cheaper than any bank.

P2P lending an alternative investment instrument. They also offer higher returns than conventional sources of yield.

Invested money in p2p are diversified: you are able to invest your 100 euros in 10 or even 20 loans. If someone do not pay back his debt,  the p2p platform transfer to the debt collection company.

When the borrower delays the payment for 40 days (in different p2p platforms 60 days), the communication process is given to a debt collection company. They try to bring your money back. So the risk to loose your money is small enough.

of course, a p2p lending company can bankrupt, but my opinion,  your money even in your safe shelter can got fire damage, thief or just inflation eat your money. You risk all the time.

IMPORTANT one thing, what risk you can hold out.

On next post i share my small p2p portfelio.

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