Peer to peer lending is a unique technique to raise money and collect funds. Peer to peer lending involves people who are in need for money and those who are willing to lend. Peer to peer lending is a simple yet efficient technique to raise money. In peer to peer lending, a common rate of interest is fixed and both lender and borrower are mutually conscious of the same. Peer to peer lending is again unique in this feature as both the parties mutually consent upon the interest rate and unlike traditional ways of money lending where a pre-decided or forced rate of interest is enforced upon the lender. Peer to peer lending also provides another unique and interesting dimension, where in online peer lending platforms the present borrowers and lenders can settle lending and the issues associated online, enjoying the comforts of their homes.
But a fund raiser often gets anxious with questions about peer to peer lending. The person more often gets stuck between many things emerging in his mind which can successfully be presented on a peer to peer lending platform, to garner funds for the cause for which the funds are sought for. We present below certain ways that can easily draw attention of lenders in a peer lending environment.
Ways to attract peer to peer lending prospects
- Knowledge: Knowledge of the borrower is over necessary and is of prime importance when it comes to peer lending. A fund seeker must be through with the profile of his borrower. Lending sites are a good medium for such profile or background checking. A borrower should go through minutes of the borrower’s profile and get a braised of the needs and interests which a borrower is looking for.
- Self-profile: The profile of a borrower needs to be quite lucrative for getting looked at by lenders in a peer to peer lending model. He who is looking to collect funds should not have a bad track record with previous loans and their repayments made. Nowadays a CIBIL score maintained for an individual keeps track of all past loan history of a person. This score of the borrower should be high.
- Agreement: The terms and conditions of the loan agreement should be clear to the borrower as well as the lender. Any breach of contract terms is intolerable and results in decreased trust on the part of both the parties to continue relationships.
Well these few points should be clear on the art of the fund raiser before stepping into peer to peer lending for fund raising.
