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Mike Bristow shares some insight into the P2P lending industry, which is set to be worth $900 billion in five years.
P2P is able to provide its lenders with a higher interest payment than banks could, not because the loans are riskier, but because the business model is completely different. That’s also why P2P firms can combine attractive lender rates without eye-watering repayment rates for their borrowers – something unimaginable for a traditional lender.