{"id":6788,"date":"2020-03-30T14:10:00","date_gmt":"2020-03-30T14:10:00","guid":{"rendered":"https:\/\/savingsforfreedom.com\/?p=6788"},"modified":"2020-07-18T22:18:22","modified_gmt":"2020-07-18T22:18:22","slug":"how-to-research-a-p2p-platform","status":"publish","type":"post","link":"https:\/\/savingsforfreedom.com\/blog\/2020\/03\/30\/how-to-research-a-p2p-platform\/","title":{"rendered":"How to Research a P2P Platform?"},"content":{"rendered":"\n

P2P Industry Introduction: 6 out of 7<\/h4>\n\n\n\n

Do you want to be the boss of your own financial situation and make money by being an investor? The goal of this series of articles is to introduce you to P2P lending & crowdinvesting and to help you decide if this asset class makes sense for your investment portfolio!<\/em><\/p>\n\n\n\n

Risks of P2P Investing<\/a><\/strong> was the previous post of the series.<\/p>\n\n\n\n

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After discussing some of the benefits and risks associated to this asset class, hopefully you have a more clear picture if P2P lending is the right investment for you. Now, if you decided to go ahead and to become a P2P investor, welcome on board! <\/p>\n\n\n\n

There are many P2P platforms on the market and it can be frustrating to choose the best one for you. Make sure to invest sufficient time to fully research your options before you commit any capital. In order to give you support, learn about some of the key topics to research for the right P2P platform and what you need to look for in a trustworthy P2P lending company.<\/p>\n\n\n\n

\"Choosing
How to research a P2P Platform <\/figcaption><\/figure><\/div>\n\n\n\n

Research the Company that Owns the Platform <\/h2>\n\n\n\n

How easy it is for you to find information about the company that owns the P2P platform? Do they provide any particular information regarding the key beneficial owners and stakeholders on their website? Search every possible bit of information available online about the company structure and key individuals involved to make sure there is no conflict of interest, such as overlapping shareholders between the different entities involved in the platform operations.<\/p>\n\n\n\n

If you are not able to find out who are the company owners, specially if they want you to trust them with your savings… make sure you at least know who they are.<\/p>\n\n\n\n

Evaluate Team Background and Experience<\/h2>\n\n\n\n

Is the P2P platform key team members visible on the website? What are their professional backgrounds? How aligned such experience is with the need to develop a successful P2P platform? How much credit and investment experience does the platform\u2019s investment team have? <\/p>\n\n\n\n

A team with a strong financial background will be better placed to make sensible and informed decisions regarding loan originators and managing loans. They should also be able to better identify loans that should be avoid.<\/p>\n\n\n\n

Check the Platform Transparency Practices<\/h2>\n\n\n\n

Are you able to easily find information about the P2P platform investments performance? Dues the platform provide any audited financial reports? Is the auditor reliable? How long is the P2P platform operating? Do you have access to all legal documents required to invest, such as User Agreement, Claim Rights, Loan Agreements, Guarantees, etc.)? Are the financials showing a sustainable business model? Remember that although past performance is not a prediction of future results, it is one element in considering where to invest.<\/p>\n\n\n\n

P2P platforms typically make money by charging fees to the borrower (and sometimes the investor too) on each loan they fund or particular operation performed. How much they charge should be visible in their website. If the platform don\u2019t have a constant flow of new loans, it won\u2019t be able to survive, putting your investments at risk because the platform is at risk of default.<\/p>\n\n\n\n

Due Diligence Check List<\/h2>\n\n\n\n