Peer to peer lending firms match lenders with borrowers, but is
the practice decreasing in popularity?
I used to be a fan of peer to peer (P2P) lending. People with
money would lend to individuals and companies, though a website
organised by the peer to peer company.
The idea was that individuals could get much more interest than
they would by putting their cash in a bank. Lenders who would
probably not get a bank loan anyway because they did not have a
track record or would find it hugely expensive, it was thought,
would willingly use a peer to peer facility.
It seemed to go swimmingly, particularly in the months and years
after the financial crisis when the banks had their own problems
and drew in their lending horns.
