New Ways of Money

1. New Ways of Money So, it’s been a terrible bout of rainy days in your life and you’ve ended up short on money with a lot of bad credit statements to account for. Somehow you show courage and device up a plan that is going to work, and will sail your damaged ship back to shore. You gather your paperwork, fill forms and go to the bank. The bank sees your bad credit and turns you down for a loan. This case is actually a very common occurring among the people of this world. Due to unseen circumstances, people end up accumulating bad credit ratings and when the time calls for a loan, they get turned down. For such people, the good news is that there is a new way that money is going around nowadays. Banks are not the only option to get loans from. If you’re thinking what’s to come must be illegal, then you’re wrong. The new way of lending money is calledpeer to peer lending. It basically means that instead of going to the bank for a personal loan, you directly go to the person who has money ready to lend. Thus, it is called “peer to peer”. This mode helps borrowers get in touch with investors directly, thus establishing a network where banks are nowhere in the picture. The best peer to peer lending arrangement is seen when a small business venture kicks off well because of the financial aid and begins to generate returns. This is when the borrower can start paying the money back to the investor upon agreed terms.