Peer-to-peer (P2P) lending is definitely the most creative of the investing models, and I’ve recently become a huge fan of the movement. There are quite a few reasons to love P2P, and I’m going to break down my top five right here in this post.
#1 – You Can Cut Out the Middleman
P2P lending companies like Lending Club and Prosper are fantastic because they serve as platforms for borrowers and lenders – independent people like you and me – to make loans. There are no banks involved – no officers or meetings or weird programs. Just regular people making loans to one another.
I guess I like the simplicity of it. Banks have taken a major beating and suffered a seriously bad rep after the economic meltdown, and for good reason. It’s nice to see people move away from dependence on the banking system and help one another instead….