Thanks for the reply. Heard that Capital match has higher default rate?Invested small sum using capital match on invoice financing.
So far so good. Returns so far this year is around 8%.
Thanks for the reply. Heard that Capital match has higher default rate?
I wonder if the underlying companies can secure a bank loan - if not, then would you as an individual lend them money over the long terms and hope to earn a decent return? The middle man stands in between to make a spread and has no credit risk so that basically reduces the return needed to compensate for the risk - same with banks but at least banks have some skin in the loans they make out.
generally, at times these firms do not have enough of a credit history, or they have already taken some loans before. but even at these p2p websites (based on my research) have their own checks on companies before providing the loan.
they firms that are borrowing might just need some money to get through a rougher time, or for certain expansions that cannot wait. it is possible to make money. just make sure you do not get too greedy, and properly diversify your investments. whatever investments you do, there is always a chance to lose some..
I wonder if the underlying companies can secure a bank loan - if not, then would you as an individual lend them money over the long terms and hope to earn a decent return? The middle man stands in between to make a spread and has no credit risk so that basically reduces the return needed to compensate for the risk - same with banks but at least banks have some skin in the loans they make out.