In the current economic climate, person-to-person (P2P) lending has become rather popular. It provides alternatives for both borrowers and investors who are looking for ways to meet their financial goals.
If you're like a majority of average American investors, you earn 1 percent or less in your savings account, mutual funds or bonds, and lose 2-3 percent to inflation. Ever wonder where that 2 percent difference goes?
Is this the beginning of an outright social movement? P2P lending will certainly not displace the retail lending divisions of the big banks anytime soon. That said, well-regulated social banking clearly offers many advantages.
The web is making it easier to borrow money from a community of strangers using a concept called "peer-to-peer lending." Entrepreneurs are embracing it to find virtual "friends & family" to give them loans.