Lendermarket on the Differences Between Peer-to-Peer Lending and Crowdfunding

Peer-to-peer (P2P) lending is a relatively new practice that has seen tremendous growth in recent years. But what exactly is it and how is it different from crowdfunding platforms like Kickstarter and GoFundMe? We asked this very question to the good folks at Lendermarket, an investment platform focused on P2P lending.

“In comparison, equity crowdfunding is riskier. And as a result, equity crowdfunding platforms are essentially targeted at experienced investors who understand early-stage companies and the risks associated with them. Peer-to-peer lending can be more predictable and has fewer risks and rewards than traditional lending.”

Lendermarket was created as a spin-off of Credistar Group, one of the largest and most reputable consumer finance companies in Eastern Europe. “We act as a trusted partner for facilitating funding processes between investors and lenders,” Lendermarket said. “We strive to offer our customers the most reliable platform to grow their long-term investment portfolio, the best customer support and the widest range of investment opportunities.”

One might say that P2P lending is still in its infancy, with plenty of room to grow and evolve. Looking into the future, Lendermarket informed us that the “P2P market is expected to grow by 10-50x over the next few years.”

“As technology progresses, we will see more passive and automated investment tools for investors. Marketplace lending has the potential to enable more retail investors to access investment opportunities that will help to secure their future financially. We aim to take part in this process and deliver this opportunity to the masses,” Lendermarket concluded.