Default risk : what if the borrower doesn’t pay ?

The #1 risk when investing in loans A borrower who doesn’t reimburse the loans is obviously the greatest risk when investing in P2P loans or through real-estate or business crowdfunding. In this article, we’ll examine the possible outcomes, based on real-life situations. Loans covered by a buyback guarantee Most P2P lending platforms offer loans covered … Read more

Crowd-lending and P2P lending lexicon

Crowd-lending and peer-to-peer lexicon This lexicon will explain the terms you’ll most commonly encounter when investing in loans. Several definitions are borrowed from external sources, while I wrote other ones. Crowd-lending Crowd-lending is the use of small amounts of capital from a large number of individuals to finance a new business venture (adapted from Investopedia). … Read more