Peer-to-peer lending is a contemporary name for an old practice. People (peer lenders) lending funds directly to family, friends, and acquaintances. The modern p2p website utilizes the internet to introduce borrowers and lenders investing in p2p loans.

Peer-to-peer lending, or most-commonly known as P2P lending, is a financing method that matches individuals and businesses who need to borrow money with others who want to invest their money without the need for any financial institution as an intermediary at an agreed fixed interest rate.

The UK is renowned for its robust economic muscle. However, this has not been the case all through. A barrage of disappointing financial reports proved one of the most recent UK Recession in 2008-2009. This economic recession in the UK affected many areas including banking and investment firms.