The importance of ratings for the P2P sector
P2P lending is easier and quicker to apply for online than traditional loans, and it appeals to investors for a multitude of reasons. Primarily, investors engage in P2P lending because it is so easy to open an investment account online, only a low initial investment is required and high returns are usually guaranteed. However, one area in which P2P lending is falling behind is in the lack of coverage available regarding peer-to-peer lending research and ratings.
Why are P2P ratings so important?
Any online service that engages with its customers benefits from the availability of background information and research, so that information is freely accessible for people to review before they make any sort of commitment. A well-researched service is generally a more trusted service, and much is the same for peer-to-peer lending. As an online borrowing option, it is essential for potential investors and borrowers to have an open dialogue online about the performance of peer-to-peer lending managers and information about new opportunities from different platforms.
Ratings provide more exposure and engagement online for the P2P sector, which is essential for any business. Transparency promotes trust from private lenders, as peer-to-peer lending is a relatively new industry. With ratings, lenders are offered more insight into an industry that they may not have previous experience with and are free to compare offers made by different platforms. Generally, comparison tables are the go-to method of rating lending platforms, specifying the investment sites’ typical rates and bonuses, with some feedback from the researcher about their general performance. This makes the process far easier and streamlined for lenders as they don’t have to do their own research.
The initial intention of P2P lending was to be more open with businesses and lenders than traditional lending mediums such as banks, and this is only enhanced by the availability of ratings to further promote this newer method of investing.
Secured Capital offers short-term P2P loans secured by property in Australia. If you have any questions regarding P2P lending, don’t hesitate to contact us by filling out our online form, giving us a call at +612 8599 9856, or by emailing us at [email protected] for more information.