Fintech has replaced the ideas of consumer finance we used to have in the past. The old way of visiting a bank and requesting a loan now seems irrational when we have Peer-to-peer lending platforms.
Recently, you would be appalled to see the influx in this relatively new industry. The mushroom growth of P2P bridging loan apps seems a great thing when it comes to social awareness of finance.
Also, the big players investing in P2P platforms give a clue that alternative finance is getting streamlined with each passing day.
The best is the ease and convenience it provides to ordinary borrowers who want immediate cash in their hands without spending months in the red tape of banks.
If you still have doubts about the importance of P2P bridging finance, then this article is for you. We will argue about this type of lending in this article and show how it’s good for you.
How P2P lending and especially bridging finance can change society?
P2P lending bears witness to the social change happening in the world. We all know the economic drivers depend on every individual putting in their part to produce something.
That’s what we see in the per capita income of individuals residing in a country. Thus, Bridging finance can become more inclusive of providing people with the money they can use in different ventures.
Financing underdeveloped areas:
There is still great potential for bridging loans in financing those where people don’t have access to funds.
For instance, African countries lack the money to finance their businesses and bridging loans can help them get the money without seeking great credit scores.
This way, bridging finance can be a pivot of social change for women running small cottage businesses, let’s say, in sub-Saharan Africa, South Asia, or even Europe, and help them expand their contribution to the global economy.
Banking the unbanked:
When we think of saving money, the first thing that comes to mind is a bank account. For years we have been conditioned that banks are the large repository of money and can save you money if you invest in them.
Similarly, if you want a loan for your home development, property purchase, or business expansion, you still consider getting a loan from a bank on collateral.
But what about those who aren’t banked, which means those who still don’t have a bank account or can’t access banking finance?
Around 1.4 billion are still unbanked. That implies these people don’t feel the need or their loan application isn’t approved.
Tapping this gigantic potential can bring positive change in our society, and we can witness some of its glimpses in the aftermath of Covid-19.
However, P2P bridging finance along with digital money can play its part in bringing more people under the umbrella of financial freedom.
Benefits of P2P Bridging Finance Lending:
Peer-to-Peer lending brings many benefits to consumer finance, especially for those who seek personal bridging loans.
We have discussed some benefits you can get from borrowing or lending from these platforms. It would be a dumb idea to pounce upon the plus side of P2P bridging finance without putting them into the right boxes.
Thus, it would help us understand how to navigate the advantages and determine the impact of alternative finance on our lives.
Swift access to money:
Streamlined connections are the hallmark of peer-to-peer lending. A corporation or a financial institution can’t be a substitute for some individuals when it comes to lending money.
In bridging finance, both lender and borrower are real people having real desires and wants. So, it becomes easy to communicate with people rather than an institution.
That’s why bridging loans are easy to get and don’t have along bottlenecks along the way. Compared to banks, which take months to approve your loan, P2P lending does it within days.
That’s how people get the money when they need it and put it where required.
So, money used for the right reasons generates good profits, and that’s how you can repay the money when needed.
Flexible Borrowing:
We generally think of bridging finance as a source of revenue to bridge the money gap. In the UK, we often think of it as special finance for the property. However, that’s not the real case.
The best thing about this alternative finance is that you can get it for various purposes. You won’t get that kind of flexibility with mortgages and high-street loans.
Various financial products are available in the P2P world that provides short-term loans for different needs.
For example, you need development finance if you want to develop a property from the ground. Similarly, you can save your drowning business with the help of short-term loans.
Conclusion:
P2P bridging finance is good for you if you want flexible lending for diverse needs. It gets an edge over legacy banking due to technology-based P2P lending platforms.
Apart from bringing social change, these peer-to-peer lending websites provide consumer-friendly banking options.
In this article, we have addressed the same benefits of P2P lending platforms for you. So, if you have read the article, kindly let us know your feedback in the comments.
