Download the complete guide to P2P lending for beginners and experienced investors. Learn how to maximize investment return, minimize risks and lots more!
This guide was written by my favourite Peer-to-peer lending platform Grupeer. It is like a bible between the investor which everyone must have in his book collection. Once you read it you will be ready to invest in Peer-to-peer lending to earn high interest probably the best rate offered by financial market on the earth.
Let download it free from the following link: DOWNLOAD the complete guide to P2P investing in 2019
Terms used in peer-to-peer lending
- Peer-to-peer lending (P2PL), is the practice of lending money to individuals or businesses through online services that match lenders with borrowers. Since peer-to-peer lending companies offering these services generally operate online, they can run with lower overhead and provide the service more cheaply than traditional financial institutions. As a result, lenders can earn higher returns compared to savings and investment products offered by banks, while borrowers can borrow money at lower interest rates, even after the P2P lending company has taken a fee for providing the match-making platform and credit checking the borrower. (Source Wikipedia:
- Loan-To-Value (LTV) is the ratio between the amount of the loan and the market value of the collateral.
- The Annual Percentage Rate (APR) is the annual rate charged by the loan originator to the borrower.
- Loan originator (LO) A loan originator lends money to borrowers. To be able to lend out more money, they place the loan on a platforms and let investors buy a part of the outstanding loan.
- Skin in the game (SIG) This refers to peer-to-peer companies or loan originators investing some of their own funds in each loan.
- Net Annualized Return (NAR) is an annualized measure of the rate of return on actual investments made in loans, after actual write-offs and service charges.
- Buyback guarantee If a loan with a buyback guarantee is delayed by more than 30 / 60 days, the loan is automatically bought back by the loan originator from the investor at the nominal value of outstanding principal plus accrued interest income or at the nominal value of outstanding principal ONLY so please check this all the time before you buy a loan.
- Full Amortization (FA) you will get interest and principal back each month, the interest is less every month as the outstanding principal lowers every month as well
- Interest-only Amortization (IOA) you will receive interest every month and the principal is paid back in full at the end of the term. The interest stays the same, since it’s based on the same principal.
- Cash drag (CD) When you’ve got money on a platform that isn’t invested yet, so you don’t earn interest from it. It mostly happens if a platform doesn’t have new projects available all the time or if your auto invest settings are set in a way that no loans fits in. This happened to me with the platforms like Twino, Swaper so I decided not to use them anymore.