Peer-to-Peer Lending and Borrowing

Peer to Peer Lending Networks (also known as P2P Lending or social lending) have been gaining in popularity as individuals and businesses have been finding it virtually impossible to secure financing from banks and other financial institutions since the financial crisis of 2008.

Currently, the average rate of return on a Lending Club investment (via a person-to-person loan) is 9.6%. If you're interested in a short-term investment and you're willing to take on some risk, investing via P2P lending may be an attractive way for you to grow your wealth. Research the network you're planning to lend with. Find out the average loan default rate and carefully consider whether it's a system that you are comfortable with.

Most lending networks allow you to provide micro-loans to borrowers, which you can use to get your feet wet.