30 Passive Income Ideas You Can Use to Build Real Wealth

Peer To Peer Lending

#28 Peer To Peer Lending

Peer to peer lending is essentially you lending out money to someone who couldn’t get a loan somewhere else.

If this is setting off your ‘risk’ alarm, it should be. These types of loans are inherently risky, considering that an established institution (like a bank) wouldn’t even give this person a loan.

There’s a risk to everything, peer to peer lending included.

But that doesn’t every peer to peer loan is a bad deal. People can be turned down for a loan for plenty of reasons. That doesn’t automatically mean the person is untrustworthy.

A younger person who doesn’t have an old enough credit history would be denied a loan from the bank to start their business.

This would be the type of person who might try to get a P2P loan.

And say this person has a big idea that could change the world…

Your investment today could mean serious passive income in the future.

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