In an era of dynamic economic changes and endless investment possibilities, it is difficult to decide how exactly to use your hard earned savings. Put them in a bank and wait for interest to accumulate, purchase real estate or go for the recently trendy Bitcoin opportunity? The options are many, but all of them suffer from an imbalance between the level of risk and the return percentage. Most people are looking for a place where their money will be safe, while still making a hefty profit – a combination of factors that can be found in P2P loan investment platforms.
Benefits of investing in P2P loans
Investing in P2P loans on platforms like Iuvo gives the investor the right set of tools and features, so he can control the level of risk and adjust it based on his preferences, while also presenting а high return of up to 15.2% annually. Increasingly more people from all nationalities and walks of life are discovering P2P lending and turning it into their primary investment method. What makes it suitable for everyone is the small amount needed to start and the directness of the procedure. The investor has complete control over the process and his funds, making every decision by himself and for himself only.
Furthermore, getting started is easy and accessible, with only a few steps that need to be performed. First, you need to open an account, which takes just a few minutes to fill in the necessary information. After that, you need to deposit funds to invest with (it can be as little as 10 Euro), and you`re all set to start. Craft a portfolio of loan investments based on your preferred level of risk and see the profit accumulate in your account statement. Of course, the investment process has many specifics, and there are a number of strategies you can employ. For more information on that topic, you can read here.
The P2P lending field is experiencing a significant rise in popularity in recent years, with increasingly more people investing their funds in it. Statistics support this upward growth trend, showing that the alternative finance market, of which P2P lending is the largest part, has grown by 92% in 2015. The countries with the fastest growing alternative finance markets in Europe, are Estonia, Finland and the UK, the US and Asia are the markets with the biggest volumes. It appears that China is the most dynamic market in the world with over 4000 providers. Furthermore, according to MarketResearch the opportunity in the global peer-to-peer market will be worth $897.85 Bn by 2024 from $26.16 Bn in 2015. The market is anticipated to rise at a whopping CAGR (Compound Annual Growth Rate) of 48.2% between 2016 and 2024.
The Importance of a Buy-Back Guarantee
Although P2P lending platforms offer the same type of service, each platform differs in terms of the support and conditions it provides. Aside from the excellent return rate, the other significant factors that make this investment opportunity so high are the accurate risk assessment and the feeling of security. To be precise, what makes investing in P2P loans risk adequately is the buyback guarantee.
If a credit defaults the originator buys back the invested amount, and the investor minimizes his losses. This is a primary sign of a reputable P2P lending platform and something that investors should always look for. It is also something that we, at Iuvo, pride ourselves to offer.
Many investors don`t realize the added value and freedom that this guarantee gives them. To begin with, the nature of investing in P2P loans presents a great deal of flexibility. The investor can craft his portfolio by selecting loans from specific score class and adjusting the level of risk. The buy-back guarantee takes this flexibility one step further, by presenting a mechanism that allows the investor to bring the risk to a minimum.
Being able to adequately assess the risk before engaging in the investment, having the security of the buy-back guarantee and being able to invest with only 10 Euro are options that cannot be matched by another investment opportunity. The investor can diversify his loan basket, try out bold new strategies and still feel safe about his funds.
Where it`s all going
Being one of the hardest working P2P lending platforms around, we see a very rapid growth rate in invested funds of over 400% for the past year. This trend and our general observation over the global industry, give us a reason to have high expectations of 2018.
More and more people are looking for opportunities to invest their savings and earn a steady profit in the long-run, something which matches perfectly with the services offered by Iuvo. We expect to see an even more significant increase in the number of P2P investors globally, due to the lack of geographic restrictions. A person from the US can freely use the services of Iuvo and invest in loans that are in Euro, Bulgarian Lev or Romanian Leu.
If you`re still not sure, try it out for yourself with a minimum investment of 10 Euro.