Benable — create shareable lists of things you recommend!

E.g., products you love, local businesses, travel recs - you can add anything to a Benable list!

Discover

Step-by-Step Guide to Peer-to-Peer Lending

11 items

Passive Income & Side Hustles

Peer-to-peer (P2P) lending is an innovative way to earn passive income by lending money directly to individuals or businesses through online platforms. Here are six simple steps to get started:

Sections

Step 1: Understand How P2P Lending Works

Step 2: Choose the Right Platform

Step 3: Set Your Investment Goals

Step 4: Diversify Your Investments

Step 5: Monitor and Manage Your Portfolio

Step 6: Be Mindful of Tax Implications

Step 1: Understand How P2P Lending Works

P2P lending connects borrowers and investors directly via online platforms, bypassing traditional financial institutions. Investors can fund loans in exchange for interest payments, while borrowers benefit from streamlined access to funds. It's essen...

When I first encountered Peer-to-Peer (P2P) lending, I was confused by the concept of borrowers bypassing traditional financial institutions and connecting directly with investors like me who were interested in financing their loans. It felt like a m...

What's Peer-to-Peer Lending? It May Not Be What You Think

Step 2: Choose the Right Platform

Research and select a reputable P2P lending platform that aligns with your financial goals. Popular platforms like LendingClub, Prosper, and Funding Circle offer varying levels of risk and return. Review the platform's track record, borrower vetting ...

When I discovered CrowdStreet, it completely changed the way I thought about real estate investing. CrowdStreet opens the door to high-quality commercial real estate opportunities that were once only available to large institutional investors. It is ...

Invest in Real Estate Online with CrowdStreet's Investment Platform

Investing with LendingClub is a very useful for anyone looking to diversify their portfolio and earn passive income. Through its peer-to-peer lending platform, LendingClub connects you directly with creditworthy borrowers, allowing you to earn compet...

LendingClub Investing

Prosper Invest offers a smart and accessible way to grow your wealth by investing in personal loans. As a pioneer in peer-to-peer lending, Prosper connects you with creditworthy borrowers seeking financial support, allowing you to earn consistent ret...

Prosper Invest

Step 3: Set Your Investment Goals

Decide how much money you’re willing to invest and what level of risk you’re comfortable with. Some platforms allow you to start with as little as $25 per loan, enabling diversification. Clarify whether your focus is on high-yield, higher-risk loans ...

Setting your investment goals is the cornerstone of financial success. When you define clear objectives—whether it’s building wealth, generating passive income, or saving for a major milestone—you create a roadmap that guides every financial decision...

How to Set Investment Goals | The Motley Fool

Step 4: Diversify Your Investments

Spread your investments across multiple loans to minimize risk. Instead of funding a single large loan, allocate smaller amounts to numerous loans in different categories, such as personal, business, or medical loans. Diversification helps mitigate t...

Another diversification is also to invest in various financial instrument such as stock market, Term Deposits, High Yield Saving Account, etc

When I first started using Acorns, I was amazed at how effortless it made investing. I’d always thought investing required deep knowledge and large sums of money, but Acorns changed that for me. By rounding up my everyday purchases and investing the ...

Acorns - Invest, Earn, Grow, Spend, Later

The platform lets me invest in short-term, high-yield real estate loans with as little as $10, which felt incredibly empowering as a beginner. Each project is thoroughly vetted, and I appreciated being able to pick and choose loans that matched my co...

Groundfloor

Step 5: Monitor and Manage Your Portfolio

Regularly review the performance of your loans using the platform's tools. Keep track of interest payments, borrower statuses, and any delinquencies. Some platforms offer automated reinvestment options to ensure consistent returns by reinvesting repa...

I used to feel overwhelmed keeping track of bills, budgets, and savings, but Quicken brought everything together in one place. With its intuitive interface, I could easily see where my money was going, set financial goals, and track my progress over ...

Manage portfolio using Quicken

Step 6: Be Mindful of Tax Implications

Understand the tax rules related to P2P lending in your jurisdiction. Interest earned is typically taxed as income, and you may also need to report losses from defaulted loans. Consult a tax professional to optimize your investment strategy and stay ...

TaxAct® will help you to file taxes online, including tax related to P2P lending. You can use their app and put your P2P loan for easier calculation of tax. If you are still confused, TaxAct® also provide tax consultant for you to connect.

File Taxes Online with TaxAct®

This article from TaxScouts will explain about P2P Lending or Peer-To-Peer Loan and its tax implication. You can learn it from them. If you use their software, you will also be available to use their tax app for calculating tax for P2P Lending. Make ...

Peer-to-peer loans – TaxScouts Taxopedia

Understanding P2P Lending Tax will be not easy. You need to check various literature. Although this article below is not directly related, you can check for some additional info.

Peer-to-Peer (P2P) Payment Taxes