Are you looking for an investment that yields a lot of profit ?
Moreover, with a relatively low risk?
Then this innovative way is definitely worth reading!
And certainly to get started with,
because you can try it out from a very low deposit of only 10 US dollars ...
The literal explanation of this term is: any form of credit where the sum of money is intended for the purchase of something other than real estate . For individuals in brief: all loans except a mortgage. Whether you buy a car with it or a smartphone. Business loans are also not included, of course, hence the addition consumer.
It is actually an old term. Perhaps outdated , because in the time in which we currently live, the financial world is also due for renewal. Just look at the rise of the cryptocurrency, where the whole point is to no longer depend on institutions such as governments and banks / insurers. All made possible by the Internet phenomenon.
For example, it is now also possible to “play for the bank” yourself. Everyone can lend money to other consumers / private individuals and charge interest for it. And thus make a profit on this investment. This is now called peer-to-peer lending, or P2P credits. And what you do with that loan does not matter that much ...
Of course you cannot just post a message on Marktplaats.nl : “who wants my money?”. That is asking for trouble. Then your return is very likely -100%, then you can just as well burn it or give it to a charity. No, special platforms have been created here that bring together supply and demand.
On the one hand it is an opportunity for people to ask for a loan to be without them so should a lender like a bank. That may be preferable for some people, but it is not easier for them. The platforms do ensure that they thoroughly check whether they can repay the loan.
On the other hand, investors can put money into the platform and spend it as a loan. Because there are often a lot of people on that platform, this has a number of important advantages, the most important of which is spread. It is much less risky to lend 1 US dollar to 100 people than to one person 100 US dollar. And you can do it like that.
Quite a lot of such platforms have now emerged, but you can roughly divide them into 2 categories : those within the Netherlands and those outside it. The difference is that within NL you are protected by our own legal system, but you make a much greater profit outside NL. That yield is simply the legal loan interest that you can ask, and that is simply much lower in the Netherlands than in countries such as Denmark, England, Spain, Portugal and Poland.
We have researched the best P2P lending platforms, and this is the outcome with a number 1 in our country and one outside:
|Lender & Spender||Mintos|
Obviously you have to register first. You can then transfer money to this account and then invest it. At Lender & Spender this is automatically spread over multiple investments, at Mintos you can determine this yourself. These investments are then paid back to you as a normal loan, so with a certain interest.
This means that you can expect monthly installments including interest that will be paid back to your account. You can then transfer this back to your bank account or you can reinvest them in yet another credit. By doing this you will see your assets continue to grow. Reinvestment can also be activated automatically.
Secretly you had of course already read the profit margins for both P2P platforms above. And that 4% or even 19% is certainly a lot more than your savings account or even your long-term deposit! But how much you ultimately end up with in absolute terms depends of course on your investment.
With an investment of 1000 US dollars you will of course earn 10 times as much as with an investment of 100 US dollars. So it just depends on how much you can invest. Always be realistic in this and prefer to invest only with money that you "can afford".
Sounds like a strange statement, but make sure you always keep enough money on hand. You never want, in any way of investing or investing, that you still lose your money and therefore get into other problems. Like not being able to pay your rent or mortgage ...
Can we immediately talk about the risks, because exactly how big is the chance that you will lose your money? First of all, you must realize that you cannot compare this form of investing with investing in things like stocks on the stock exchange. They are price sensitive to exchange rates.
While issuing a credit like this is in fact a fixed contract where you agree on a fixed profit in advance. What can happen, however, is that the person to whom you are lending cannot repay. However, the platforms provide a solution: Mintos takes over payments if they are late, and even repays the loan if it can no longer be Demorei at all.
Lender & Spender takes care of the entire procedure in the event of non-payment and even collection. You will also receive a part of any fines that the person who takes out the loan has to pay. They even go so far as to place the loans in a separate Ltd, so if Lender & Spender itself goes bankrupt, the loans will continue and you will get your money back.