P2P lending is also known as Peer-to-peer lending. It’s a method of linking a borrower to a lender.
P2P Lending - December 6th
What is peer to peer lending and how does it work? Peer to peer lending involves borrowers taking out an unsecured loan via investors though the peer to peer lending platform, rather than borrowing from a bank…– Read more
P2P Lending - November 10th
Co-author: TJ Ryan What is peer-to-peer lending? P2P lending or peer-to-peer lending is a relatively new form of loans, where potential borrowers borrow money from investors directly, rather than through a lending financial institution. It can…– Read more
P2P Lending - October 26th
Peer-to-peer (P2P) lending is a direct loan offered from lenders to borrowers through a secure online platform.– Read more
Peer to peer finance is a relatively new concept in Australia, although very well established in countries such as America and the UK. The past few years have seen a significant increase in the number of Peer to Peer lenders in Australia and there are now P2P platforms catering for various types of lender and borrower. A summary of who offers P2P lending in Australia is here.
Peer to peer (P2P) lending is a commercial arrangement offered by various non-banking organisations to enable borrowers to tap into spare cash that investors are willing to lend.
CoAssets is Australia’s first publicly listed peer to peer lending platform with offices in Australia, Singapore, Malaysia, China and Indonesia. CoAssets brings real estate developers, businesses and investors together, with excess of A$48+ million worth of transactions taking place through the platform in the last two years.
Society One was Australia’s first marketplace lender. It is a privately owned company registered in Australia that connects individual and institutional investors with people who want a personal loan of up to $35,000. For investors, loans are diversified across many different individual loans in order to reduce the risk of capital loss.
Ratesetter launched its Australian business in November 2014. It is an independent company, managed and majority-owned locally which connects individual and SMSF investors with people who want to borrow. For investors, it minimises investment risk via a provision fund and was the first P2P lender to release its loan book data in Australia.
Moneyplace launched in mid-2015 and offers investors receive a portfolio of loans to diversify their risk. Investors can select a risk profile (investment preference) and receive a loan portfolio in line with that preference. Moneyplace offers loans of between $5,000 and $35,000.
Marketlend provides loans for between $2,000 and $1 million and is a Peer to Business platform. It is a wholly owned subsidiary of Tyndall Capital Pty Ltd. Borrowers must be a business which is operating and is registered as a limited liability company, or limited liability partnership or sole trader with an Australian Business Number and unlike the providers listed above, Marketlend lists loans on its platform for investors to bid.
As an investor, investing via a P2P or P2B platform might net you a higher rate of return than is available on cash accounts, such as a term deposit. However investors should be mindful that P2P lending is not capital guaranteed.