How does peer to peer lending work

Share On Facebook
share on Linkedin

Peer to peer (P2P) platforms bring together people wanting to invest with borrowers that are looking for a loan, delivering better value to both.


Until now, people have not been able to lend directly to borrowers in a meaningful way. Instead they have had to put their money into a bank deposit and the bank then lends their money on.  Banks are regulated with the objective of keeping deposits safe, but this comes at a price: low returns that often can’t even match inflation.

P2P lenders like RateSetter are different to banks – we are optimised to deliver value. We offer the opportunity to put your money to work, by efficiently matching investors with borrowers, allowing investors to directly enjoy the risk and returns.  We have an excellent track record of delivering steady, healthy returns to investors since 2010.

P2P lending is becoming a popular investment for people that are diversifying their investment portfolio, because lending sits in the gap between the safety, but low returns of cash deposits and the potentially large returns, but volatility of shares.


New investor offer: £100 bonus when you invest £1,000+ for a year. Ts & Cs apply: Click here for more information


CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch:

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20211027 14:27:55