Published on 07.06.2021, Eppingen
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More and more people in Eppingen and the surrounding area are opting for a P2P loan.
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Here, the borrowers do not turn to a bank or another credit institution, but get their money from private donors. This is a good way of securing financial resources, especially for the self-employed or people with a moderate credit rating. With a P2P loan there is great room for maneuver and they can be used as an investment opportunity. For this it is important to find a reputable and reliable provider. This article explains what makes P2P lending so special and what borrowers should look for when choosing.
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A loan from private individuals
A P2P loan (peer-to-peer loan) is a form of loan that works independently of banks and other credit institutions. Instead, borrowers occur andprivate donors in contact with each other and negotiate an individual loan agreement. This is interesting for everyone who wants to save the sometimes time-consuming process of issuing a classic bank loan. A P2P loan can usually be negotiated flexibly and unbureaucratically, so that the required money lands in the account promptly.
Compared to a bank loan, the requirements to get a P2P loan are less strict. However, here too, a requirement is that the borrower of legal age and therefore full legal capacity are. In addition, they must have a place of residence and an account in Germany. A regular income and positive payment behavior are also important requirements, even if the credit check is less comprehensive than with other forms of credit. Borrowers can choose to take out a loan from a single private individual or take out a loan from multiple private lenders.
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P2P lending is a great choice for the self-employed
Finding a suitable loan is often difficult for the self-employed. The main reason for this is that their income fluctuates strongly in some cases. At the beginning of a month, you can only roughly estimate how much money will be available to you at the end of the month. Tax bills show the income and profit development of individual years, but also here there can be strong fluctuations. Due to these uncertainties, banks have a comparatively high default risk, which is why they do not grant loans to the self-employed or only grant them at poor terms.
In Eppingen and the surrounding area there are a considerable number of people who work independently or have a lucrative business idea. Many of them choose to take out a P2P loan, to be able to set up or expand their business. For this it is important to convince the potential lender of your own idea and to score with seriousness and reliability. A business plan and good payment history are therefore good prerequisites for getting such a P2P loan.
Even with a moderate credit rating, a P2P loan is possible
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With a bank loan, creditworthiness plays an important role. The credit institutions want to protect themselves against loan defaults and the associated losses, which is why they carefully check the solvency and payment behavior of applicants. It is irrelevant here whether the borrowers need the money to finance Christmas gifts, for a business idea or to repair their own car. Only those who have a good credit rating have a chance of getting a loan.
In the case of P2P loans, the creditworthiness is also checked, but the criteria are much less strict. So it is also for people who already have entries with the Schufa or whose creditworthiness has deteriorated in some other way, possible to get the money you need. The number of private donors is significantly larger than the number of banks operating in Germany. Therefore, the probability is high to find a suitable lender who wants to support the ideas and plans of the borrowers and thereby earn money.
P2P loans sometimes offer great scope for negotiation
The number of people in Eppingen who take out a P2P loan is continuously increasing. Many are impressed that this form of credit opens up a lot of room for negotiation. Banks and other credit institutions often have firmly established award procedurethat are used in a loan application. If you want to have a loan, you have to meet the requirements set out in the bank’s catalog of criteria and then receive the money at the conditions that have been tried and tested for the bank. Flexibility is only given within narrow limits here.
The situation is different with P2P loans. Here the borrower enters into direct negotiations with the lenders. There are no structures or traditional working methods in the background that borrowers have to take into account. Instead, all loan terms can be freely negotiated and fixed in a loan agreement. However, this flexibility makes it necessary bring good negotiating skills and to find a sponsor whose ideas fit perfectly with your own ideas and wishes.
P2P lending as an investment option
For private financiers, P2P loans are a lucrative, but relatively risky one Investment form The self-employed, whose creditworthiness is difficult to assess, and people with a moderate creditworthiness often seek P2P loans. Thus there is one for the investors comparatively high risk of failure. Many try to minimize this through great diversity. By making many P2P loans to different borrowers, they are approaching the average default rate. You thus have a specific value at hand that you can count on, which makes the granting of P2P loans plannable and offers the opportunity to avoid defaults. Due to the high negotiating leeway that such loans offer, it is also possible to negotiate good terms and achieve an attractive return.
Find a partner for P2P lending
There are a considerable number of P2P platforms and credit institutions that establish a connection between borrowers and private financiers. In contrast to other forms of credit, these do not act as lenders themselves, but rather serve solely as an intermediary. It is advisable to make a precise comparison of the individual portals and platforms. This increases the likelihood of getting to a reputable provider. In addition, such a comparison makes a large number of potential lenders available with whom borrowers can enter into negotiations. This noticeably increases the likelihood of a positive loan approval.
Conclusion
P2P loans are particularly popular with self-employed people from Eppingen and people with moderate credit ratings. You benefit from the less stringent credit check and the large negotiating leeway with this type of loan. For private financiers, however, P2P loans are primarily considered to be lucrative form of investment Interesting. It is important to find a suitable and reputable platform that establishes contact between borrowers and lenders.
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