Starting a Peer-to-Peer Lending Business: Advice & Tips
Hey everyone! I’m interested in question of how to start a peer-to-peer lending business, but I’m unsure where to begin. I know it involves connecting borrowers with investors directly, but I’d like to get a clearer picture of the basics. Specifically, what’s the first step to setting up this kind of business, and what should I focus on to ensure I’m meeting legal and financial requirements? Any advice or tips would be great, especially if you have experience in fintech or setting up a lending platform. Thanks in advance!
You’ll also need to think about risk management. Not all loans will be repaid on time, so many peer-to-peer platforms have reserve funds or insurance partnerships to help cover potential losses. Structuring a fair risk-sharing model is important for attracting both investors and borrowers. Additionally, offering customer support is crucial, as many people may be unfamiliar with this type of investment.