6 best P2P lending apps with engaging investment options that can help you attract your investors
Peer-to-peer lending continues to capture the minds of people and driving them towards the modern way of borrowing and lending money. It has become a much more viable option for the people who need money as well as for those who wish to invest their money. Let’s check out some of the best P2P lending sites and their unique features- mainly for the investors.
In the early days, when you wanted a loan to pay off your car or credit cards, you’d go to a bank or a credit union. You had to sit down with a loan officer to discuss things and then keep waiting for them to approve the loan with crunched numbers.
As for investing, it was always done with a traditional broker- either online or in-person.
Since times have changed, there is no need to go to the bank or brokers. Peer-to-peer lending is all about supporting each other instead of relying on big banks.
In 2005, Prosper came into being where people could lend money to each other and could make money through interest rates.
Today, there is a skyrocketing growth seen for P2P lending and in figures, the growth can be marked as 110%. Looking at the current scenario, we can say the P2P apps are here to stay and conquer with more and more marketplaces popping up every year.
Since there are overwhelming options let’s check out why some of the best P2P lending apps are great for investors. After reading this, we are sure, you can determine how to attract investors for your P2P lending apps with our white label solutions.
6 best P2P lending apps you have to know about before going for P2P lending app development
Prosper is the first peer-to-peer lending marketplace founded in the US. The platform came into existence in the year 2005. The company is called OG peer-to-peer lender. The website claims to have co-ordinated more than $12billion loans for more than 770,000 people.
How is it to Invest with Prosper?
Prosper provides many options for you as an investor to choose from. They have seven distinct “risk” categories that you can select from. Each category has its own estimated return and level of risk. Take a look at the risk levels and the estimated returns, according to Prosper:
- AA – 4.99 %
- A – 5.22 %
- B – 5.77 %
- C – 7.78 %
- D – 11.49 %
- E – 13.48 %
- HR (High Risk) – 11.74 %
Now, you can make out as the letter gets lower the risk of default increases and also the return expected is higher. A $25 minimum investment can work for you across all seven categories. Prosper claims that 84% of their active investors get expected or more than expected returns on their investments.
2. Lending Club
It works just like Prosper but it started two years later than Prosper.
How is it to Invest with Lending Club?
The lending club allows individual investors to invest as little as $25 across different risk profiles called notes. They have developed an automated solution to pick up loans and the investors can choose from platform mix, custom mix, or do it manually. This allows an investor to become varied with the click of a button. They do not have to worry about finding loans to fit in their particular criteria.
There is also an education section to let the investors know more about investing with them with this newer type of investment strategy.
It is an innovative P2P lending company founded by three ex-Google employees. The unique feature of upstart is the way it determines risks. They have a system with Artificial intelligence to assess the risk which has significantly lowered the loss rates.
How is it to Invest with Upstart?
Investing in Upstart is also rather spontaneous. Unlike other P2P platforms, it allows setting up a self-directed IRA using the investments from peer-to-peer lending. Many investors should be attracted to this is a unique feature. The platform also allows automated investing by picking a particular strategy and automatically depositing funds.
StreetShares is a peer-to-peer lending platform that is somewhat distinctive than the others. In this platform, the loans are designed for small businesses.
How is it to Invest with StreetShares?
StreetShares allows investors to invest in a Skilled Business Bond that supports business owners all over the country. StreetShares provides funds to new and main street businesses. The investors can earn a 5% flat interest rate on their money. The investors can deposit money from $25 to $500,000 and after one year they can withdraw the money with 5% earnings.
5. FundingCircle (small business)
This is another P2P platform for small businesses. The company was founded to help small business owners grasp their aspirations by granting them the funds required to grow. The company has funded more than 40,000 small businesses across the world through investment funds by 71,000 investors across the world.
FundingCircle concentrates on more valuable dollar amounts for companies that are available for huge growth. They also have an exceptional TrustPilot rating.
How is it to Invest with FundingCircle?
As an investor, you are required to spend at least a minimum of $250,000. FundingCircle allows you to invest in American small businesses that have stabilized operating history, cash flow and a vital plan for growth. Although there is risk associated, the fundings are for businesses looking for extra growth.
You can control your finances and choose individual loans or set up an automated strategy. You can set your investment rules and prepare a portfolio.
Peerform is a P2P lending app founded by Wall Street Executives in the year 2010. It had two primary objectives – to provide borrowers with a positive experience and to provide investors with a well-vetted investment choice.
How is it to Invest with Peerform?
There are two different types of products for investors – Whole loans or fractional loans.
The whole loans are most suitable for institutional investors and fractional loans are intended for individuals. The platform has 16 different risk classes to invest in. They have deployed an algorithm that is continuously updating as new loans are funded so they can provide the best data for investors. They also allow tailoring investment mix with their customization options to get a diversified portfolio.
After reading all these features for investors in the famous apps, you must have got a fair idea in your mind to attract investors with a certain set of features. Our white label solutions have all those features already adorned and you can directly get started without any hassle.
Interesting isn’t it? We recommend you to connect with us and share the requirements to get these white label solutions customized as per your suitable needs. You can even ask for a free app demo. Our technical team promises end-to-end solutions empowered with the latest technologies to take your business to the next level. With our white label solutions, you can enter the P2P lending world with a bang! What are you waiting for? Get started today!