Prior to the arrival of those P2P platforms, folks would take short-term interest-free loans from folks that have been directly or indirectly known to them. This situation had its limitations to both loan seekers in the type of societal stigma, taking a favor, short-term durations, etc. and also for creditors in form of absence of legal arrangement, absence of yields, etc.
These are the issues that online P2P platforms have managed to fix. Additionally, P2P lending platforms have managed to scale this practice by allowing transactions between two people that are complete strangers prior to coming to the stage.
Some of these value-added functions in which P2P platforms work besides bringing together lenders and loan seekers are expected diligence on borrowers, easing legal arrangements and payments. In addition, they indicate various ways that transactions can be organized.
Some effective platforms in the UK and USA have tie-ups with institutional investors such as banks and other financial institutions to help faster loans for loan seekers. They're miles ahead of standard lending institutions in exploiting technology.
Not only are associations appearing to lend through those programs, but many businesses like Google are also eager to pick up equity in them by paying substantial amounts of money. For equity investors, P2P is a fascinating and exciting opportunity that works at the forefront of two of the most sought after domain names, finance, and technology.