One of the great successes of the private loan is the P2P loan between individuals and companies; The main cause is found in the absence of credit by banks. This has made new avenues open up and new formulas for credit to come into being; companies in the network of new business opportunities and some of them are P2P lending platforms with reference to the English expression «peer to peer». They are also working in Spain such as Cream Bank or Comunitae; and recently the German company Nice Lending has just joined the private loan car on the Internet.
Clients who want to apply for a loan
They represent success stories of the private loan; These companies work as follows. First of all, there are clients who want to apply for a loan and, even if they are solvent, they do not meet the demands of the banking system; therefore they need to find an alternative to get the money they need. On the other hand there are also investors who want to lend their money, for these investors the Internet loan platforms are the ideal product to invest their savings and thus obtain a much higher profitability than with other types of savings options, Take the case of bank-type deposits.
Although according to Abdicae, there is no safe return and it all depends on the ability to pay that the person receiving the loan has; It is an important point because the investor must also keep in mind that there is a risk and that it is possible to lose the money that is lent.
New successes of the private loan is that the default of these platforms
An interesting fact about these new successes of the private loan is that the default of these platforms is between 2% and 3%, as opposed to 14% of the defaults that have been obtained by the banks. For this reason it is not yet possible to offer the investor real security, the guarantee does not yet exist. Although the company Cream Bank indicates that the most appropriate thing is to work with a large number of loans in order to soften the risk of defaults that we have mentioned above.
Although these platforms are obtaining successes in the private loan, there is still no easy access to credits; however, they are offering a new option to traditional banking. We must bear in mind that the Nice Lending company is rejecting 80% or 90% of the requests that come to it, this percentage is even higher in the case of the Cream Bank company. Keep in mind that these are small amounts of money, up to $ 25,000 in Nice Lending and around $ 100,000 in Cream Bank; even so, successes of private loans are being observed online thanks to these new technological alternatives.
It has been shown that the cause of these successes lies in the fact that these new business models emerge outside traditional banking and are using a gap that financial institutions have left empty. The economic magazine Forbes thinks that it has a utility, in a special way although it is still impossible for them to replace traditional banks.