How does peer to peer lending work?

Peer to peer lending has been around for the past decade or so, and is known by many other names. Social lending, person to person lending, and P2P lending all mean the same thing. What exactly is this type of loan and how does it work? Many individuals, especially those with less than perfect credit are finding it a great option compared to other loan offers. When we think of peer to peer lending, we think of the television show Shark Tank, however lending isn't necessarily for a business venture, and investors do not get any stake in what the person plans to do with their loan. Let's take a further look at P2P lending.

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