How can you start P2P lending business and avail credit with the P2P lending apps?
Short term loans involving tedious documentations and high-interest rates can be draining you out. But Peer to peer (P2P) lending platforms clarifies the process of availing loans for short- to medium-periods.
Here are the features that your P2P platform must have:
The borrower must register by filling up an online form to get a loan from a P2P platform. The form obtains personal, financial and professional details. If there is any registration charge, it can be prescribed by the platform while creating the borrower’s profile.
⇒ Credit verification
The borrower is expected to put in the loan amount and the period for which they need the loan. After the creation of the borrower’s profile, the P2P system carries out credit verification. A credit score is needed to add the interest rate on the loan amount. The higher is the credit score, the interest rate applicable will be lower.
⇒ Listing of profile
The borrower’s profile is listed for different prospective investors. The investors are allowed to view the profile, credit rating, purpose of the loan, and other important information. If the investors are satisfied with the information, they can choose to fund the borrower. The loan can be sometimes funded by multiple investors.
The loan once funded up to 75% is disbursed to the borrower. Before that, an agreement regarding the loan is signed between the borrower and investor. The borrower needs to choose the method of repayment – automatic deductions or through a credit or debit card.
The loan agreement is generally a digitally signed one which is made available for review upon logging into the profile of the lender or borrower.
The borrower must list a National Automated Clearing House (NACH) order to automatically debit the borrower’s bank account with the EMI amount in support of the lenders.
How do you plan to start the P2P lending business and to develop a P2P lending app?
Step 1: Deciding on a registration form
Choosing a form for registration of a legal entity needs consideration of things like
- Registration as a company or a limited liability company will defend against lenders in the event of failure or force majeure.
- Corporations require significantly more demands than LLCs, including requirements for accounting and tax reporting. You must also look after things like holding shareholder meetings at regular intervals.
Step 2: Registering your company name
- The company needs to be registered in the state in which businesses will operate. The P2P platforms have it as the main office location.
- You need to take up a free name that can be checked on the US Patent and Trademark Office (in case you are launching the platform in the US).
- The brand name can be different from that of the domain name.
- Remember, the registration rules can vary according to states.
Step 3: Raising money for start-up capital
You need money to manage the operating expenses at the starting of your business. You cannot expect the P2P investors to come to your platform immediately. So, to collect the money, we can help with a detailed business plan to reach out to various investors for fundraising.
Step 4: Next is developing a P2P Platform
If you are interested to create the P2P lending platform from scratch you can hire our team of blockchain developers. However, we also have a white label solution to offer you for your P2P lending platforms.
White Label can integrate your own credit outlines, but this will require hiring the relevant professionals.
Step 5: Creating a web portal
When creating a site for peer-to-peer lending, it is crucial to reflect such significances:
The portal must be combined with the highest number of payment gateways.
The site interface should be spontaneous and support numerous significant languages.
Step 6: Testing the site and platform
We help you with customizing the platform and testing each usage scenario. We ensure that everything works in a way it should for your startup. The most attention we pay at this time is security, usability, and performance.
Security: Security is an essential factor to consider because of the user and payment gateways connection. The data should be always encrypted, personal data is hidden behind seven seals, and financial gateways are closed for 1000 and 1 lock.
Usability: The user at the first switch to the site must know how to register, apply for a loan or invest money.
Performance: The speed of loading a site on different devices can be checked to improve and enhance the platform’s performance.
Step 7: Platform Launch
Launching your website is not easy. There are many things that are needed to be done first. One of the most important things is a marketing campaign, offering first users – borrowers and investors – discounts, lower interest rates, more loyal conditions for granting a loan.
We can help you with all of these activities along with technical support and maintenance for your platform. Our specialists ensure with proper precautions, testing and debugging that the platform launched does not contain any errors. We will catch and destroy all the errors and bugs to make your platform error-free. Our white-label solutions are affordable and have amazing features.
If you are interested to know more about the white label solution or P2P loan app, connect with us and share your requirements. We will be most have to help you with our end-to-end solutions to make your business a huge success.