Secrets – what P2P investment sites tell you and what they really mean
The best P2P investors ‘read between the lines’
Most P2P investment sites provide a lot of information about the loans they offer. There will be information about the borrower, the purpose of the loan, and what the loan collateral is (if any). Often the information provided will be very positive about all aspects of each loan and each borrower. Some investment risks may not be addressed fully or will be totally ‘glossed over’. It can take time to gain experience and know what things to look for.
Our goal is to help P2P investors of all experience levels find the very best opportunities and avoid potential mistakes. The post below is meant to be a little provocative, but hopefully informative and fun. We’ve listed some common statements we see made on P2P investment sites and what they can sometimes REALLY mean. This is just a starting list though – we welcome all our readers to give their thoughts and also contribute some new ones by adding them in the comments below.
“The loan is to provide working capital to the company”
“The collateral is a guarantee from a director of the company”
The min loan target size is X, the max loan target is Y
“This is a development loan stage 1”
“This is a development loan stage 12”
“The loan will be repaid by refinancing, the sale of the collateral
“We give this loan a B rating”
“The company grew its revenues by 20% last year”
“This loan has 2% cashback”
“The loan is secured on a crypto mining rig”
“You can purchase this loan through fiat currency or our ICO token”
“This is a refinancing of an existing loan”