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The Benefits of Peer to Peer Lending

BY Rachel | 11 April, 2015 | no comments

For a while, there has been a slight stigma when it comes to loaning or borrowing money. It was not truly your money, they said, and people will be coming after you soon enough. However, in the age where bigger companies and organizations have been on the rise, and more and more people are looking to start businesses to either add to their income or provide a living, the importance of loans have grown, and the stigma that came with it all but disappeared.

After all, how would one start a business without a capital? Regardless of the product or service that would be the focus of the company, money will be needed to start. Even without having to do with businesses, there are times when large sums of money are needed in case of emergencies, and we do not always the cash available.


Traditional loaning would require an individual to go through multiple loops in order to get to the end point, having to secure intermediaries such as banks or other such organizations. Peer to peer lending, however, is a type of loaning that requires no such difficulty- such as the name says, it will require only the individuals who need the loan and those who will provide the loan. There are multiple platforms on which to conduct these deals, especially online, where privacy is much more paramount than most might think. As an example, UK-based Unbolted is a peer to peer lending platform, that connects such individuals for successful deals. Unbolted uses a borrower’s personal assets for collateral, allowing for safe and fair transactions without anyone having to go through a credit check.

Here are some other good things about it:

1. There will be no questions asked; as long as you provide any of your assets, that are deemed acceptable, for security, you will get your loan regardless if for business or personal reasons.


2. There will be no credit checks- your loans will be guaranteed as long as you have something tangible to give up. This way, your privacy is ensured, and anyone has a chance for a loan.


3. Transactions are transparent. Everything will be clearly stated in order for the borrower and the loaner to understand the terms and move forward without doubt.


4. It’s fair. If the borrower is not able to pay when due, then their collateral will be sold. No one loses in the end, as the nature of the deal already ensures financial security from the beginning.


Platforms like Unbolted offer peer to peer loans, giving anyone a fair chance for long term or short term financial security, without having to go through credit history or expose every blunder an individual had that would work against him in a traditional setting. For as long as the borrower can find assets that are reasonably easy to liquidize, they will be able to get what they need. For the loaner, the transactions offer enough safety and transparency that they will be able to provide the loan without having suspicions.

At the end of the day, peer to peer lending, with the platforms like Unbolted offers, makes loans easier, safer, and most importantly, possible.