In only recent years, Peer-to-Peer (P2P) Lending has exploded from the possibly troublesome financing niche to a significant section of customer borrowing in charge of an astonishing $5B of loans in 2014, driven in big component by investor need for fixed earnings options offering better yields in todayвЂ™s low-interest-rate environment.
Yet the stark reality is that P2P financing is not pretty much investment possibilities вЂ“ for most, it is an integral source of borrowing prospective, specially to combine and refinance credit that is existing along with other debts at lower interest levels.
The costs and the caveats, and the situations in which financial advisors should consider exploring a P2P loan as a financial planning strategy for clients in this вЂњFinancial AdvisorвЂ™s Guide To Peer-To-Peer BorrowingвЂќ, we discuss the mechanics of how borrowing via Peer-to-Peer Lending actually works, the rules and requirements!
Writer: Michael Kitces
Michael Kitces is Head of preparing Strategy at Buckingham riches Partners, a turnkey wide range management services provider supporting a large number of independent economic advisors.
In addition, he could be a co-founder associated with XY preparing system, AdvicePay, fpPathfinder, and brand new Planner Recruiting, the previous Practitioner Editor associated with Journal of Financial preparing, the host associated with the Financial Advisor triumph podcast, and also the publisher of this popular economic preparation industry web log NerdвЂ™s Eye View through his site Kitces.com, aimed at advancing knowledge in economic planning.