By: Akmal Khan0 comments

Individuals these days are choosing alternative forms of investment that aren’t as affected by the economic climate. Traditional stocks are steadily slowing to make way for possibilities that provide more anticipated returns on investment, with peer-to-peer lending rapidly increasing in popularity among investors looking to make a good amount of profit and such investment is flourishing.

P2P remains stable during economic changes

Stocks fluctuate in value, also the risk-level is fixed by the size, age, and location of the firm one is investing in. Neither the price of the share nor the dividend is guaranteed. Moreover, speculating on the right time to purchase shares can be tricky and costly. And hence the market is unpredictable. 

Relatively, P2P returns are typically stable, which means it is likely to get a set rate of return on your investment, so you know what to expect.

P2P provides monetary security

With stocks, investing in a firm that could experience unreliable events such as a drastic drop in profit, and many more so companies and the stock market won’t offer your security. 

But P2P lending is that many of the platforms that have protection in place for your investment. These platforms invariably take other steps to mitigate risk. Risk profiling and credit assessment are conducted for borrowers before they can place a request for a loan. One doesn’t need to be an expert in borrower assessment as it is done by the platform, which is an expert into it.

Allowing prompt access to your money

Accessing your money when the share price is lower than when you bought it will mean you lose money on your investment. 

Through P2P lending, an individual gain early access to money. If he/she wants to exit the agreement early, some P2P lending platforms will make this possible without you having to lose out. To do this, they’ll usually match the loan with another lender who wants to invest at the same time as the exit period. The other lender will then take your loans and you’ll get repaid from them.

Stocks and shares are easily impacted by the economy, so why not try investing your money somewhere less risky? Peer-to-peer lending is not only less affected by the economy, but it also offers better protection and flexibility for your money with better returns.

Want to understand more about P2P lending?  Check our website.

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