Best P2P Lending Sites 2020
Want to invest in P2P loans? Here are the best P2P lending platforms to invest with:
Find the best Peer-to-Peer lending platforms
So you want to find the best Peer-to-Peer lending sites for investors? Then you’ve come to the right place. At the top of this page, we have collected the industry’s very best P2P lending platforms from around the world.
This means that you can easily compare Peer-to-Peer lending sites, which allows you to quickly find your best choice and get started with P2P investing as soon as today.
We have collected everything from national to international Peer-to-Peer lending sites. So whether you are looking for the best P2P lending platforms in Europe, the United States, or maybe even South Africa, you will be able to find an opportunity that suits your needs.
Peer-to-Peer (P2P) lending is a type of financing that makes it possible for borrowers to lend money and investors to loan out money without the need of a bank. P2P lending is facilitated on Peer-to-Peer lending platforms, where borrowers and investors meet.
If you want to invest in P2P loans, you can do so via one of the platforms featured on our website here.
Via the many P2P platforms, you invest in real estate loans, business loans, consumer loans, and more.
Mintos is a very popular P2P lending site with hundreds of thousands of users. It is by many even considered the best company in the industry. The platform has consistently been able to provide +10% annual returns for investors over the past 5 years. You can check it out here.
Over the past few years, it has not been unusual for investors to be able to achieve annual returns of +10% by investing in some of the highest returning and best European P2P lending platforms.
Let’s say that you invest €10,000, the amount of money you would be able to make with a 10% annual return would be €1,000.
Find a platform to get started with P2P lending here.
No investment is without any risk, and even if you only invest your money on the best P2P lending platforms, your capital is still at risk.
Best P2P Lending platforms in Europe
On this website, you will mainly find some of the best European P2P lending platforms. The following are some of our favorites:
- Iuvo Group
- Fast Invest
Even though the companies mentioned above are from Europe, many of them are available for investors from all over the world. You can learn more about the platforms in the P2P website list at the top of this page.
Which P2P lending platform(s) to choose?
But what is the best Peer-to-Peer lending site, you might consider? If so, it’s your lucky day. In the following, we are going to explain everything about just that.
When choosing between even some of the best Peer-to-Peer investment platforms, there are a number of things to consider. Which platform you should use depends a lot on your situation and the goals you have with your investments.
But other factors such as where you are from, also play a role in which platform you should choose. Let’s look at some of the important factors to consider in the search of the best crowdlending platforms for you.
Which P2P lending firms you should look at is largely based on where in the world you live. This is due to the fact that a number of platforms only can be used in a limited geographical area.
For example, many Peer-to-Peer lending platforms in the US, such as LendingClub and Prosper, are only available to investors from the United States. Conversely, investors from the US may not always be allowed to invest through European P2P lending sites.
So when you are looking to find the best platform for you, it’s important to be aware of where it is available and whether you can use it or not. You can read more about this in our platform reviews.
There is an increasing tendency for P2P lending websites to offer Peer-to-Peer lending for international investors. This means that almost no matter where you are from, it is possible to find a great platform.
Another thing you should be aware of is that P2P lending companies in some cases only provide loans in a particular currency. For example, it can be USD, EUR, or even PLN.
Many investors tend to invest exclusively through their own currency. It is perceived as the safest. However, for a European investor, it may be a good idea to invest both in USD, EUR, and perhaps even a third national currency. This can help to minimize currency risk.
But before investing all your money in some small national currency, you should take a look at how stable the currency is in relation to your own. Because, if the currency constantly falls in value compared to your own currency, then it is perhaps best to keep your Peer-to-Peer investments in your own currency.
3. Time horizon
Before you throw your money into the first and best P2P investment, it is also important that you consider your time horizon. It is not all Peer-to-Peer lending websites that give you the opportunity to withdraw your money ahead of time. And if you need to do so, it can sometimes cost a large fee.
Fortunately, the vast majority of the top lending sites allow you to withdraw your money ahead of time. So whether you are in it for the long-term or prefer short-term Peer-to-Peer investing, you have the confidence of being able to withdraw your money ahead of time, if necessary.
If you are in doubt about your time horizon, look for a P2P marketplace that has a secondary market. You can check if a platform has a secondary market in our Peer-to-Peer lending sites list at the top of the page.
4. Loan types
Before you lend through P2P lending platforms, you should also consider what type of loans you want to invest in. There are a number of different P2P loan types to consider:
Some different loan types include:
- Personal loans
- Business loans
- Car loans
- Short-term loans
- Pawnbroking loans
- Invoice financing
- Mortgage loans
- Agricultural loans
Consider whether some of the loan types are better suited to your portfolio than others. For example, if you want to invest mortgage loans or real estate development projects, it may be a good idea to use one of the specialized real estate Peer-to-Peer lending platforms. Would you rather have personal loans in the portfolio? Then use one of the many Peer-to-Peer payday loan providers. You get the point.
Like most, you might just want to diversify your portfolio in order to minimize your risk. You do this best by choosing at least 2-3 different specialized Peer-to-Peer investing sites. Alternatively, you can also find a platform that offers many different types of loans.
5. Buyback guarantee
Many Peer-to-Peer loan platforms have started offering a buyback guarantee. That means either the P2P loan sites or the loan originators must repurchase the loans if a borrower is unable to repay. In our opinion, some of the best P2P lending platforms for investors are those offering a buyback guarantee.
However, you must always be aware that a buyback guarantee is only as valid as the company behind. Therefore, it is always a good idea to use some of the top Peer-to-Peer lending sites in the industry.
6. One or multiple P2P platforms
Having both some P2P payday loans and a bit of Peer-to-Peer investment property in your portfolio can be a really good idea. The first can be achieved with the platforms you can find in the overview at the top of this page, while the latter can be achieved by using real estate crowdfunding platforms.
As previously mentioned, good diversification can best be achieved by investing via several P2P platforms. However, there are also platforms like Mintos, where you can find almost all loan types.
If you are serious in starting lending out your money, we recommend that you in our P2P lending comparison section, at the top of the page, choose 2-3 platforms that specialize in different things, and invest through those. It is probably the best way to achieve a good P2P investment diversification.
But if you just want to try your hand at P2P lending, then it might also be a good idea to simply choose a good all-round platform like Mintos.
How you can use our website
It is our mission to help investors compare and find the best P2P sites to their needs. In order to find the best possible platform, you can benefit from using the following process:
1. Compare Peer-to-Peer lending sites
The focal point of our website is to make it easy to compare P2P lending platforms. At the top of this page, you can, therefore, find a huge list of firms in the industry. This allows you to easily find your best match.
As part of your platform research, we also recommend that you look at what other P2P investing websites, such as this one, write about the various P2P platforms featured on our site. If you compare information from several places, you will probably have a better foundation for choosing the right platform for your needs.
On our website, in the section for P2P investing comparison, you can compare the different platforms based on these relevant points:
Compare the following points:
- Average return
- Where the platform is available
- Minimum investment
- Year the platform has launched
- If there is a secondary market
- Whether auto-invest is possible
- Whether buyback guarantee is possible
- If an investment bonus is available
Note: The contents of the items in our list of Peer-to-Peer lending sites are indicative. For example, a bonus might be mentioned. But if you want to know the circumstances under which it applies, you can read more about this in our P2P lending platform reviews. You can get to the review of the individual provider directly from the overview at the top of this page.
2. Read P2P lending platform reviews
If you have found a crowdinvesting platform that immediately meets your requirements, we actually recommend you to do more in-depth research.
You can do this by reading a Peer-to-Peer lending sites review. A link to a review of an individual platform can be found just below the descriptive points about the platform at the top of the page.
In the reviews you can see our ratings of the following points:
- Investor protection
In addition, you can find pros and cons about the platform, a brief summary, what the platform really specializes in, and much more.
We also typically include some tips and tricks. These will help you avoid common pitfalls, and get started crowdinvesting in the best possible way.
3. Choose your desired P2P lending platform
Once you’ve made a comparison of P2P lending platforms and read some reviews, it’s time for you to choose.
We recommend choosing at least 2-3 different platforms. It will help you minimize your platform risk. But if you just want to dip your toes a bit in the crowdlending world, then you can of course also just try it out with a good all-round platform like Mintos.
Are you ready to go to our Peer-to-Peer lending comparison section? Press the button below to get to the top of the page. Here you can find some of the very best crowdlending sites, read reviews about them, and maybe even get started with P2P investing today: