Lending has typically gone hand in hand with banking. Previously banks and credit unions were the only places that people went for a loan. These days lending is not necessarily tied in with banking and as such it has its own category. While this new category will include some challenger banks there are also new providers with new lending mechanisms. Peer to Peer (P2P) lending is where one end user lends money to another via an intermediary. There are obvious risks with this but lending platform offer ways to assess risk and the associated interest rates. Crowdfunding is also another popular method these days, where the public effectively pool their cash and make an investment in you or your business. There are also a number of interesting mortgage providers appearing in this space, offering innovative approaches to home buyers. As with all investments, your capital is at risk and the value of your investment may go down as well as up.
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