If you are new to P2P lending investing or an experienced investor on this type of platform you may be wondering how to achieve higher returns. Peer Loan Advisor has developed a proprietary methodology for assessing the quality of peer to peer loans offered on the lending club Platform. This algorithm is based on research and analysis of hundreds of thousands of actual loans issue by Lending Club. This is an extraordinary task and it was done for you by. All you need to do is join and you will have access to information on every loan that is available to investors. The price is very low and you will not find a better value anywhere since this service can help you achieve significantly higher returns.
Here are some basics on how Lending Club works:
1) Prospective borrowers go to LendingClub.com and complete a new loan application. This can be done in a matter of minutes.
2) Lending Club will evaluate the application based on industry standard underwriting principles and determine if the loan is approved.
3) Loans that are approved are then assigned a grade from A through E, with A being the highest and E being the lowest. The lower the grade is the higher the interest rate charged to the borrower.
4) New loans are offered to investors and investors select the loans they would like to invest in and they amount which must be at least $25.
5) Once investors have committed all of the money for a particular loan then it is no longer available to investors.
6) Lending Club provides the borrowed funds to the borrower.
7) As the borrower makes payments Lending Club will credit the account of each investor.
8) If a borrower missed payments then Lending Club will initiate processes to get the borrower back on track. If this fails then they will send the account to collections.
The benefit to the borrower is the ability to secure capital while paying sometimes significantly lower interest rates and maintaining easier loan terms. Banks and traditional financial institutions are circumvented and avoided entirely through P2P lending, helping both the borrower and lender by offering a lower interest rate and a higher investment return. One could summarize further by noting that P2P lending maximizes diversification and yield while minimizing risk and time cycles for an investment. This, coupled with the market constancy of personal need for capital and the avoidance of the complexities and risks of stock-market and bond investment, make P2P lending an attractive investment vehicle.