P2P lending (or peer-to-peer lending) is a fast growing space in which any individual or organization can lend money directly to another individual through an online p2p lending platform such as Prosper or Lending Club. The transparency, ease-of-use, and ability to quickly make a loan request or fund a loan at competitive interest rates make P2P lending attractive for both borrowers and lenders. The passing of the Jumpstart Our Business Startups or JOBS Act in 2012 created additional interest by formalizing rules around crowd funding—an off shoot of peer-to-peer lending. This growth has attracted institutional and investment advisors to P2P lending to invest in this fast growing space typically through a P2P lending fund. What follows is a look at P2P lending for professional investors.
P2P Lending Industry Overview
In 2013 two of the largest platforms in the United States, Lending Club and Prosper issued READ MORE
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Copyright ©2014 Mark Shore. Contact Mark Shore for permission for republication at firstname.lastname@example.org Mark Shore has more than 25 years of experience in the futures markets and managed futures, publishes research, consults on alternative investments and conducts educational workshops. www.shorecapmgmt.com
Mark Shore is also an Adjunct Professor at DePaul University’s Kellstadt Graduate School of Business, where he teaches the only known accredited managed futures course in the country. He is also a Board Member of the Arditti Center for Risk Management at DePaul University.
Past performance is not necessarily indicative of future results. Only use appropriate risk capital; this investment is not for everyone. The opinions expressed are solely those of the author and are only for educational purposes. Please talk to your financial advisor before making any investment decisions.