Choosing Your First P2P Platform
Decided to invest in P2P loans and wondering which platform you should use?
You’ve come to the right place! Here at P2P Empire, you’ll learn all you need to know when choosing your first P2P lending platform.
We’ve been investing in P2P lending since 2017 and tested dozens of P2P platforms. In this post, we’ll teach how you choose your first P2P platform to start earning money online.
Let’s jump straight into it.
When choosing your first P2P lending site, you want to pick a reliable P2P platform that fulfills the following criteria:
Why is Fulfilling the Above Criteria So Important?
If you’re just starting out with P2P lending, your first experience will define your long-term P2P lending strategy, which is why we want to make sure it’s a good one.
With our strategy, you’ll earn at least 10% interest per year from P2P lending.
Keep reading to find out exactly how you should choose your first P2P lending platform.
Solid Track Record
Don’t invest your money on a P2P lending site that has recently launched; these lack transparency and you might end up losing your money.
Instead, look at the platform’s statistics and check the following:
- When was the platform launched?
- How much money have other investors earned?
- How many loans have been funded?
- How many investors are currently active on the platform?
- What’s the platform’s average portfolio size?
- What’s the platform’s financial performance like?
All of our P2P lending reviews have a dedicated section revealing platforms’ statistics.
So, what does a good platform’s stats look like?
A good platform will:
- Have been operating for at least three years
- Have paid out more than €1M to investors
- Have funded more than €100M worth of loans
- Have more than 10,000 active investors
- Be profitable
Keep this checklist in mind when choosing your P2P platform. Your goal is to make money and a platform with this kind of track record will more likely help you reach that goal.
Large Availability of Safe Investments with High Returns
You want to invest in loans that will be paid back with high interest, right?
We certainly hope so.
So, how do you ensure this happens?
You’ll need to analyze the risk and returns on every platform. Luckily, we have done this for you and you can learn more about this in our individual P2P lending reviews.
What you want to do is understand the protection of your investments.
Is the P2P platform able to communicate this in a comprehensive way? If so, this is a good sign.
It’s not easy to evaluate the risks if you’re just starting out, which is why you should also study our guide to safely investing on P2P platforms.
Making investments is one thing, but being able to make investments in safe loans is another entirely.
What we mean by this is that the P2P platform needs to provide you with enough investment opportunitiesp in order for you to make money. We refer to this as the ‘availability of loans’.
The greater number of loans a P2P lending platform offers, the better.
Why? Because your goal is to keep your money invested all the time, and the more loans available, the greater the chance of this happening.
You can check the number of loans a platform has by looking at the primary market. Most P2P platforms show you how many loans are available before you even sign up and create an investor account.
Transparent and Fair Terms & Conditions
When starting out with P2P lending, you’ll always be asked to accept the platform’s terms and conditions.
We know what you’re thinking... Who actually reads these? Well, 99% of investors don’t.
But, we do! And do you want to know why? Because these documents are crucial when it comes to understanding and evaluating the risk of our investments.
Would you like to invest on a platform that can change its terms and conditions anytime without informing you?
We didn’t think so…
Believe it or not, a lot of terms and conditions have a clause that says they’re able to do that, and needless to say, this can have a negative impact on your investments.
We recommend reading the terms and conditions fully, but if you don’t want to read the entire document, have a quick overview of the fine print in our due diligence section that we have included in all of our P2P lending reviews.
Your goals should be to invest money on a P2P platform that puts your interest first and protects your money.
Fast Access to Your Money
As a beginner investing in P2P loans, you need to gain experience and build trust with your chosen P2P platform.You might even find yourself checking your investment account every day to make sure the money is still there.
We feel you. We have also done that at the beginning of our P2P lending career. But, eventually, you will become more comfortable with P2P lending.
No matter how cautious you’re feeling, we recommend you start investing on a P2P platform that allows you to withdraw your money in case you decide that P2P lending isn’t for you.
If you decide at any point that you want to withdraw your money, you can do so within 30 days with no additional cost. That’s the benefit of investing in microloans: the loan term is typically very short, which means your investments are more accessible.
You want to make money and not to study the functionality of complex investment tools, right?
That’s why you should choose a P2P platform that’s very easy to use while keeping all the above-mentioned criteria in mind.
When looking for good user experience, check for the following:
- Easy sign-up
- Fast verification
- Fast deposits
- Intuitive auto invest that allows you to invest your money fast
Wondering whether there’s a platform that fits every criteria in the list above?
Why PeerBerry Should be Your First P2P Platform
We have been investing on PeerBerry for more than two years. The P2P platform lists loans from established loan originators with healthy financial reports - meaning they are profitable.
All of your investments are protected by the buyback guarantee as well as the additional group guarantee.
There are always plenty of investments available and you can access most of your funds within one month.
PeerBerry is also one of the few platforms that publish weekly news updates about the performance of their lending companies.
You can also automate your investments with the auto invest in just one minute.
PeerBerry is one of the most reliable platforms in 2020 and a great option if you’re just starting out with P2P lending.
Here’s what you get by investing on PeerBerry:
- The platform offers investments in loans from established loan companies
- All investments are protected by a buyback guarantee
- You’ll have fast access to your money
- High availability of loans
- Regular reporting and monitoring of the loan performance
- Functional and intuitive auto invest
These are also reasons why we have currently have more than €10,000 invested on PeerBerry.
Are you ready to join us and start earning money online?
By signing up with our link you'll receive additional cashback bonus of 0.5%