Alternative funding has gained worldwide popularity, becoming increasingly widespread in Europe as well. While it has many faces, the largest share of it is funding using the so-called Peer-to-Peer (P2P) platforms .

What is P2P Lending?

According to the Wikipedia definition, this is the practice of borrowing funds for individual borrowers or businesses through an online platform that directly connects them with lenders.

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Do you want to invest money online in peer to peer lending platforms? Check our P2P lending comparison table comparing most important features across best p2p lending platforms.

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.

As an investor, if you have cash that you wish to invest you have a number of options, including savings accounts, bonds or riskier investments like stock markets or complicated derivatives.

Savings are safe but offer paltry returns, bonds pay out regularly, but cannot grow your money, and shares require a great understanding of the markets.