What is online credit? What are the characteristics and risks?

The arrival of the Internet era has changed our lives. In addition to food, clothing, housing and transportation, the emergence of online credit is also a change.

Credit is not a credit loan, but a monetary lending behavior between different owners that reflects a certain economic relationship. Traditional credit can be divided into two types. Credit in a broad sense refers to the general term for deposits, loans and settlement of financial institutions. Credit in a narrow sense generally refers to loans from banks or credit cooperatives.

And online credit refers to the use of Internet technology to achieve monetary lending between different owners. In fact, online credit can be regarded as a branch of credit, and both have some characteristics, as follows:

1, pay attention to safety

Money-related things should naturally be safety first. In the process of operating credit business, online credit platform should try to avoid the risks and losses of credit funds, and improve the security of credit business from the aspects of security, risk control ability, risk review before lending and after lending.

2. Maintain liquidity

A major feature of credit business is that it can recover loan funds within a predetermined period of time or quickly convert credit into cash without loss, maintain good liquidity and meet the capital needs of both credit parties.

3. profitable.

Through the rational use of funds, improve the efficiency of the use of credit funds, maximize profits, and achieve the unity of the platform's own economic benefits, investor returns and social benefits.

In short, online credit can not simply point to a certain industry, and the financial business is complex, which extends more possibilities on the basis of the Internet. Therefore, both borrowers and lenders should understand the above basic knowledge when they are involved in online credit.