What Is P2P Investing?
By P2P Insights Editorial Team
P2P investing skips the banks and lets investors fund real people and businesses directly. You earn interest as borrowers repay, and platforms handle the screening, servicing, and payments. It is simple in concept: you supply capital, they put it to work.
P2P can be a smart middle ground between low yield savings and high volatility stocks, offering higher yields than savings accounts or CDs, but only if you treat it like a portfolio, not a lottery ticket. Diversification credit quality and platform fees matter.
The upside is steady cash flow and transparent loan terms. The downside is real: defaults happen and liquidity can be limited. If you want returns that feel earned instead of hoped for, P2P investing is worth a serious look.