Summary of Peer-to-Peer Lending

Is peer-to-peer lending attractive to you, perhaps because you have bad credit or because you are looking for a higher return on your investment than you are currently getting? P2P is attractive to both borrowers and lenders and can serve them both. Being a new version of an old practice, it has a number of wrinkles to iron out, not the least of which are complying with regulations and offering services that both borrowers and lenders will want. Ironing out these wrinkles may add to the cost of P2P and make it less attractive.

It remains to be seen how peer-to-peer lending will navigate its challenges and become its own business model, and whether it can stay distinct enough that its advantages can flourish.