With a theoretical return promise of 10 to 12%, peer to peer has something to appeal to investors. This category of crowdfunding has the merit of being highly flexible and more advantageous than a traditional savings account.
In addition, investing in P2P does not require in-depth knowledge and allows you to create passive income to enhance your wealth. Of course, the risks of capital loss exist, but are relatively low.
We explain why investing in equity loans may be ideal for you.
More advantageous than a savings account
You will find it interesting to invest in P2P for its level of profitability. Indeed, the investments made within the framework of the participatory loan have a return that varies between 5% to 12%, or even more depending on the platform. This makes it a much more profitable investment than most traditional savings books and materials.
This is mainly due to the freedom available to investors to be able to set relatively high interest rates on P2P loans.
No knowledge needed to invest in Peer to Peer
Another major advantage of peer to peer investing is its simplicity. It does not require any special knowledge and anyone can invest in it without being an expert in finance.
Depending on the characteristics of the platform, a feature allows you to automate your investment portfolio. You will only have to define in advance the minimum loan amount, the interest range and the duration. That said, it is always essential to think of an investment strategy, to define your investor profile according to your sensitivity to risks.
The risk is low
If the risks of the P2P loan are not zero, they are kept at their lowest expression. This is due to the security measures put in place by the platforms to secure investors and preserve their reputation.
To this end, borrower profiles considered to be risky are generally not eligible on the platforms. The latter conduct a careful analysis of the profile of debtors and the solvency of their projects any loan agreement. They assess and provide all reliable information with a credit rating and lenders can engage with knowledge of the risks.
Finally, investors can spread the loans granted over different projects in order to minimize losses due to the default of a lender.
Enjoy great flexibility
You have flexibility that you usually won’t have with most investment media. The platforms easily put you in touch with a multitude of borrowers who want to negotiate loans.
You invest freely in the projects that interest you. You set the amount of the loan granted, the amortization period and the interest rate.
A way to create passive income
Investing in P2P finally offers you the means to diversify your assets and earn passive income to enrich your wealth. Depending on the case, the various loans granted grant you equity securities or interest. A percentage of the loaned capital plus interest is paid into your bank account on a regular basis.