There are rich people lending others money out there. In fact, this is a legitimate industry. This is often called person to person loans, peer to peer loans, or p2p. You will find many sites where the wealthy and those with the means to borrow to other are willing to do so. These transactions come complete with contracts, making them fully legit. Let’s explore a bit more peer to peer lending, so you can find the wealthy and rich people borrowing others money, rather than hoping to find millionaires giving away cash.
How it Started
This type of social borrowing has been around for many years, at least to some extent. However, it wasn’t until the worldwide economic crisis in 2007 through 2010 that this industry took off. The first US based company to specialize in this was Prosper. Today, there are many such companies out there that help to setup peer to peer loans. This is one of the places you’ll find rich people lending others money.
Why It’s Popular
Unlike traditional banks, each individual that has funds to borrow out sets their own credit limits. This means even those with a very bad credit score can get a high risk personal loan. Most will specify exactly what is required to borrow from them. Since folks with bad credit scores have a hard time getting loans at banks, they often turn to person to person borrowing for help. The industry has grown tremendously in recent years. There are more folks willing to borrow and more folks looking to borrow.
How it Works
Rich people lending money will sign up on hosting sites, like the previously mentioned Prosper, to help them connect with those looking to borrow funds. Each lender can set their own limits. Some may only borrow to those with a decent credit rating, while others may be willing to borrow to those with a poor score. In addition, the dollar amount can be limited. Some may only be willing to lend a few hundred dollars, while others may lend out tens of thousands of dollars. Rich people lending others money can set their own limits.
The terms of the loan are clearly stated. Interest rates are stated up front, along with the other repayment terms. The hosting site essentially acts as a middleman, getting the two sides together to agree on terms.
Since there are contracts involved and electronic records of communication with the borrowers, the folks borrowing the cash, and the hosting site, there is typically plenty of proof to support the intent to repay. This makes the transaction more secure for both parties.
Now that you know how p2p borrowing works, you can find some rich people lending others money.