Traditional Culture Encyclopedia - Traditional customs - What is the difference between p2p online lending and private lending? Will it be safer?
What is the difference between p2p online lending and private lending? Will it be safer?
Peer-to-peer can directly connect borrowers with capital needs and investors with idle funds, eliminating the intermediate link of private lending, without multiple lending relationships and short capital chain, thus reducing the borrower's loan cost and improving the investor's return on investment.
The emergence of P2P online lending is an epoch-making product for traditional private lending, with high returns and higher security.
Private loans often need to go through credit intermediaries or middlemen. Investors don't know much about the borrower's information and the purpose of borrowing. Once an economic dispute occurs, it is prone to violent debt collection, which has a negative impact on social stability.
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