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P2P Lending – is it the future? P2P Lending – is it the future?

P2P Lending – is it the future?

8th August 2014 | Written by Michael Devlin | Categories : Business Litigation, Personal Litigation
P2P Lending – is it the future?

Peer-to-peer lending is the practice of lending money to unrelated individuals, or “peers”, without going down the traditional route such as a bank and has been described as one of the most disruptive innovations in financial services in recent years.

It is aimed at matching lenders to borrowers with the goal of providing lenders with higher returns on their investments than they would get in traditional savings accounts whilst borrowers benefit from lower interest rates being charged on their accounts than those offered by pay day lenders.

It is a rapidly growing area of financial services and with the growing dissatisfaction with the traditional institutions and the recent regulation of pay day lenders that seriously restricts their business models it has left a large market for P2P business to step into to provide unsecured personal loans, commercial and property investment loans, payday loans, as well as secured business loans.

That could be set to increase even further with recent figures suggesting a downturn in remortgaging and an increase in personal secured loans – is that an area that P2P lenders will be able to step into?

That can be an area that is heavily regulated by consumer credit legislation that can put off many lenders, but if they get it right could P2P lenders who venture into this be even more disruptive to the mainstream than has been predicted?

It is important that as you grow your P2P business you have all the correct foundations laid including a strong recovery process that can allow you to do what you do best whilst we look after those problem borrowers that can cause a headache to your and your lenders.

Contact us on 01565 754444 or by email to to discuss what we can do for you.