Alternative Investments can provide lucrative returns that are unavailable by investing in the stock or bond market. In earlier posts, we discussed alternative investments in farmland, rooftop solar system, private equity, collectibles, real estate, and gold. In this article we discuss investing in another form of alternative investment – Peer-to-Peer Lending, or P2P Lending or Crowd Lending as it is more commonly known. P2P Lending has gained plenty of momentum in the recent years as the hunt for alternative sources of investment and higher returns are pursued by investors, especially in this low interest rate environment.
Alternative Investments – Peer-to-Peer Lending
Peer-to-Peer Lending is the practice of lending money to unrelated individuals, or “peers”, without going through a traditional financial intermediary such as a bank or other traditional financial institution. The lending takes place online on peer-to-peer lending companies’ websites using various different lending platforms and credit checking tools. It is important to realize that these are unsecured personal loans – either to an individual or a small business.