If you are looking for a line of credit, the first thing you should know at this very moment is that there is life beyond Bank credits more traditional. How? Well, very simple through the so-called loan platforms between individuals. It is a way of alternative financing that can get you out of more than one trouble from now on. And what is more important, with the application of an interest rate that in most cases will be much more competitive. That is, you will save money in the formalization of the operation.
In any case, it is a very new model that is emerging with exceptional popularity among users. In particular, between the sector of the younger population that is used to operating with new tools in information technology. With the appearance of new platforms that allow individuals to finance some of your closest needs. Although of course its mechanics will not be the same as through the more traditional systems.
The loan platforms between individuals offer duly differentiated services and benefits that you need to know right now. With the aim of value if you can or demand them depending on the profile you present as users. Another of his most relevant contributions lies in the fact that it is a solution when They have closed the possibility of financing you through the proposals of the banking entities. You will always have this resource to request a loan. Although the amounts they offer at the moment are lower than the conventional ones.
Platforms between individuals
It is very interesting that you know what these platforms offer you at the moment. Well, you should know that these special financing tools constitute a clear support to investors who wish to undertake their business expectations. In this sense, it is a series of loan platforms, commonly called P2P, which are really connected to investors who need loans. That is, they want to finance some need, well personal, but above all professional. With a series of characteristics that very well define these new tools that are replacing banks.
This new product is characterized above all because the expected rate is close to 7% per year, well above the returns that European banks offer, which in most cases do not reach levels of 4%. On the other hand, another of the common denominators of these very special platforms is that liquidity is immediate. Where the process starts from where the investor can sell his portfolio and access his money at any time, requesting the transfer so that it goes to his bank account. It is perhaps the least complicated part of the operating process.
What are your requirements?
To operate in these loan platforms between individuals, there are not many requirements that are requested at this time. Among the most prominent is its great ease of use. Because indeed, if these new financial tools are distinguished by something, it is that they are very easy to use, as it does not require investment experience. So that you are fully ready to operate from the first moment. Despite the possible lack of knowledge in its use. That is, in the cases in which you operate for the first time and that is when more doubts arise about what you are going to find from those precise moments.
On the other hand, you cannot forget that in the loan platforms between individuals you can share your portfolio with friends and relatives. For example. With your older brother who wants to contribute to your investment. Between other reasons because you can do it in a very simple way and both of you can have many advantages. Why you will get a more competitive interest for leaving the money and yourself because you will be in a position to finance yourself in better contracting conditions. Not surprisingly, it will cost you less money than if you use any of the credits marketed by financial institutions. It's that simple from now on.
Risks in operations
Of course, one of the aspects that you will consider right now are the risks involved in the operations carried out from these loan platforms between individuals. In this sense, you should know that the risks are very limited because it is the platforms themselves that invest their capital in micro portions of various loans, reducing the risk to the maximum. As a consequence of this unique commercial strategy risks will be reduced every time you demand one of their products or services. Beyond the interest that you agree with the other party, that is, with the private lender.
Furthermore, these platforms They use filters so that delinquencies are practically nil or nonexistent. In this way, you will avoid unwanted contacts that may lead you to have more than one surprise in the coming weeks. From this point of view, there is no doubt that the risks are certainly controlled. And this is a factor that helps investors, as it can be in your own case. Although in any case, and as is logical to understand, everything will depend on the conditions imposed by each of the loan platforms between individuals. And that they are not always the same since it is a very inhomogeneous sector that is undergoing a profound transformation in its dissemination among users.
Portfolio diversification
To manage risk, it is important to diversify within your portfolio, meaning you should not put all your eggs in one basket. Instead, you must diversify through a wide variety of loans to reduce your overall risk of loss. In this sense, these platforms allow this unique investment strategy to be carried out. So that in this way, risks are reduced in either of the two parts that are part of this process. It is something that you should not forget to use this service that can undoubtedly help you at some point or another.
On the other hand, it is also very important to take into account from now on that user platforms have before them the percentage of investments made through the API in the same trend as in previous months. Not in vain, decreased slightly to 0,4% of the total, due to the technical skills required for this option. In either case, it is one of the clearer options than other investment alternatives. Despite the advantages and disadvantages that these models entail between individuals.
What is the P2P loan?
For those who have not yet taken advantage of this investment alternative, there is a very frequent question that you ask yourself at this time. What do you need to know about P2P loans? or how do P2P loans work? Well, the main Technological advances and the global reach of the Internet has enabled them to turn their service-centric ambitions into a very powerful reality. On the best P2P platforms, it can usually take just a few minutes, and a few clicks, depending on whether you are using a computer or a phone, to register and begin participating.
Just by registering you can access its content at any time of the day, even at night or on weekends. Without having to formalize this administrative and management process in any physical office. So that in this way, you can operate with their products and services. To the point that you can demand a line of credit under the conditions promoted from the loan platforms between individuals. It will be very interesting, on the other hand, that you can find out who is going to be the person who is going to finance the money. It is something more important than you can foresee from the first moment.
Terms of these credit lines
Another aspect that must be taken into account is the deadlines to which these special products that we are talking about in this article are directed. From this general scenario, although it is true that the loans that are offered by the platforms generally have terms ranging from six to 18 monthsThis does not mean that you have to fully or partially commit to that period of time. Because you can have more or less long maturities.
Moreover, there are no fees to invest in the primary or secondary markets. A small collection and recovery fee is deducted from the cash flows of the delinquent loans. Just as there is a large internal secondary market that allows investors to buy and sell their existing investments. Wherein, investors can access hundreds of data points on available investments through a so-called user interface. Being one of the novelties with respect to traditional financial channels. One reason that may incline you to hire this service from now on.
I am from Guatemala and I am interested in a credit