P2P Lending: Understanding The Risks

Peer-to-Peer lending is a higher-risk form of investing than regular bank saving and lenders and prospective lenders must not treat the two as substitutes. Lenders’ capital is entirely at risk and lenders may receive back less than the value of their original investment.

The following is a very high-level review of some of the risks currently associated with Peer-to-Peer lending. It is not intended as a comprehensive record, nor a substitute for financial advice.

Please note that lenders and prospective lenders are encouraged to seek their own tailored and professional financial advice when considering investing in Peer-to-Peer lending.

Originally Published: Wednesday, April 6th, 2016
Updated: Thursday, February 7th, 2019

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