P2P Lending Platforms crowd funds and raise money from a large number of investors.
As a young company or an SME with very brief credit history and possibly lacking in a strong financial record. The traditional method of obtaining an SME loan from the banks become extremely difficult.
With P2P Lending Platforms, they allows companies to avoid the time burden, financial costs, and other limitations of traditional financial institutions when in need of fundings.
As investors, we can invest in these crowdfunding platforms to earn an interest from the loans we dispatched to these SME companies.
Currently there are a few major P2P Lending Platforms in Singapore.
They are mainly:
To help Singaporeans make smarter personal finance decision, here are some tools to help you:
One can read up our comparison article on all the P2P lending platforms here: