P2P loans stand for peer-to-peer loans and means that individuals lend money to each other through an online platform. The phenomenon is sometimes referred to in Swedish as person-to-person loans. This blog post is about P2P loans and Cream Lending loans.
First an explanation
For those who want to read more about P2P loans, please scroll down a paragraph. Cream Lending does not offer P2P loans, but fast direct loans. Click here to apply for a direct loan.
P2P loan and where it comes from
Peer to peer is a concept that became known as file sharing grew. The file sharing, as you know, offered users to download files from each other’s computers instead of downloading the material from a server. This meant that every person who had files they wanted to share could do so directly from the home computer with the help of a file sharing program.
The consequence was that illegal file sharing exploded. A common technical solution was that each individual user contributed a small part was when someone downloaded a file. The downloader did not download the files from one source, but several from several sources. Theoretically, thousands of people could contribute with a few small parts, for example. a digital music album that an individual user downloaded.
Because the files were not in one place and because it was indifferent if a single user was stopped, it became more difficult for the authorities to prevent file sharing. The technology behind it is still legal.
A P2P loan is based on the same idea as the peer-to-peer technology. A P2P loan starts with a lender deciding the amount she wants to lend. Just as a P2P file divider does not control who, how many or how large portions of the file individual users download, nor does the person who gives a P2P loan decides who lends or how much each individual debtor borrows from the amount.
In other words, the borrower takes out a loan, but behind the amount there are a variety of creditors. In this way, the risk is spread in a P2P loan.
The technology behind P2P loans is an online platform that matches lenders and borrowers against each other. Thanks to the fact that P2P loans are managed entirely online and do not offer any other services, the cost of the loan can be kept down. This is one of the reasons why people apply for P2P loans.
Why has P2P loan not broken through on a broad front?
P2P loans are a marginal phenomenon. Why that is, I can only reflect around. Maybe it feels unsafe to borrow and to legend to an unknown number of people who are and remain anonymous? Most people hold on to their hard-earned slums and do not want to risk anything. Under ordinary loans, it is clear who lends and who lends, and so the loans have worked ever since the first banks emerged in 13th century Italy. That the amounts in P2P loans are moved around anonymously may feel uncertain?
Of course, what the future looks like for P2P loans remains to be seen. Maybe the new generation is easier to take on the loan form? The new generation who may not even have access to cash when they grow up …
Are there any risks with P2P loans?
Different clients for peer-to-peer loans offer different security solutions. There are strategies for the lender of a P2P loan not to lose their money on non-payment, but the risk is taken by the lender. On the other hand, creditors for P2P loans are given a high return, it is not uncommon for interest rates up to 10 – 15 per cent. As usual in the economic world, the interest rate reflects the risk the creditor takes.
If you want to lend to or take out a P2P loan, you must make a risk assessment yourself. We recommend that you do research so you are sure the company is serious. can see if it has known investors behind it. But of course there are other ways to insure that as well.
A quick loan from Cream Lending
Cream Lending is a serious lender with extensive experience. We are part of the international 4 Finance group which has more than 10,000,000 issued credits. In other words, we hope you can feel safe borrowing money from us.
Cream Lending is a high-cost credit for fast consumer loans of amounts between $ 2000 – 15,000. The maximum amount for new customers is $ 5000. The repayment period is 7 – 30 days.
We do not offer P2P loans but are a traditional lender. Cream Lending fast-paced similarity to P2P loans is the agility that comes from online management. If you are granted a loan by Cream Lending , the money is paid out within 15 – 30 minutes, around the clock, every day of the week. It can actually be faster than a typical P2P loan.
Here’s how to borrow from Cream Lending
To borrow, you must first fill out the form on the Cream Lending website. You will also need to identify yourself with Bank ID and approve that we do a credit check.
You confirm your identity with Instantor and your bank or through a manual process. After identification and credit check, your loan application immediately begins to be processed. In most cases, you will shortly be presented with a loan proposal from us.
If you want to take out the loan, just choose to accept it. The money is deposited into your account 15 – 30 minutes after your application has been registered!