Articles tagged with: Real Estate Crowdfunding

How Does P2P work?

P2P lending is popular among young entrepreneurs as it helps them in fulfilling their dreams. Money is the prior need to start any project. P2P platforms like Peerberry connect you with investors that can lend you money. You may check reviews for Peerberry at

The P2P lending process can vary by stage; however, it generally involves these steps:

  • Before a loan is submitted onto a platform's site, a prospective borrower submits an application to the stage for consideration.

  • The platform gets a credit report on the applicant and uses this information, together with other information, in proprietary versions to assign a hazard tier into the projected loan and establish an interest rate corresponding to the assigned hazard level.
  • If approved, a loan petition is submitted on the system site, where investors may examine all loans or search for particular loans that meet their preferred risk/return characteristics.
  • If there are enough investors to finance the loan, the loan is then originated by a financial institution, the deposits of which are insured by the Federal Deposit Insurance Corporation (FDIC).
  • The originating bank subsequently sells the notes related to the particular loan into the stage, which at precisely the identical time, sells the notes to every lender which has agreed to finance the loan from the principal sum of the dedication.
  • The notes issued by the stage are ensured by the underlying loan, which implies that investors are due payment from the stage if the inherent borrower repays the loan.