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Fast – with no bureaucracy

Peer-to-peer (P2P) essentially means «like to like» or «friend to friend». The concept is extremely simple: lenders and borrowers are brought together via an internet platform. In this way, both sides get a good deal.

Just one of many success stories: Morgan has long been interested in the topic of energy, in particular how we can reduce our consumption as much as possible.

The idea of founding a company to help people take charge of their own energy supply came to him during his studies in the USA. Recently he decided to finally take the idea seriously. To get more financial flexibility, he took out a loan, which he received without any red tape over the internet.

Loans that are provided by a larger group of private and institutional investors can then be distributed to companies and private individuals. Creditors receive repayments at individually agreed intervals, as well as interest payments based on the potential risk.

«Essential to the process is of course the borrower’s credit rating.»

Essential to the process of course is the borrower’s credit rating. Information such as unsettled debts, residential environment and demographic aspects such as age, name and gender may all feature in an initial credit rating decision. The interest rate corresponds to the risk of payment default. P2P providers accurately differentiate and categorise borrowers into sub-groups, each of which pays a different interest rate.

Lenders and borrowers see eye to eye
This assessment is carried out by the provider. Even though P2P loans currently make up only a small portion of the private and commercial lending market, they are strengthening the trend towards an economic system that operates outside of conventional banks. The technical opportunities of the internet make it possible to achieve a high degree of transparency compared to other forms of investment.