The financial industry has seen a constant evolution over time. The key players have been introducing new trends and platforms to make arrangements for those who require money. Peer to Peer lending and bridging loans are two emerging trends in the market that are becoming famous. This post will talk about the top trends in P2P lending and why bridging loans are becoming prominent.
According to the research, in 2025, the Peer to Peer lending market will be reaching a net worth of nearly one trillion pounds, whereas, in 2015, it was worth forty-six billion. This industry has been progressing rapidly, and this is not just hype, unlike the other trends. The experts believe that the shift of investors and borrowers to P2P is logical and practical. That is why this business will see steady growth over time.
P2P lenders have promoted low operating prices, the least amount of regulations, and implementation of Big Data with the latest technologies to organize the lending platform for a mobile-based end-user. All this has been done to assist the investors and borrowers in gaining fast access to money. It is a financial setup that is experiencing tremendous growth in a short time. Moreover, it is in the transition period where the P2P facilitators are implementing many global variations of the same concept. The finance specialists believe that Peer to Peer lending can even take over the banking industry.
Here is a brief overview of two of the latest trends in the P2P industry
1. There will be an Increase in Small to Medium Size Lenders
For the majority of people, the progress in the P2P system has created financial opportunities. Hence setting up Peer to Peer lending services has become tremendously affordable. There is no requirement for more significant investments and hiring staff. The rules are also not as strict as traditional banks.
That means the banks and other older financial services now experience competition from the smaller Peer to Peer lenders. Besides being small, the P2P platforms provide effective services because of the latest development in lending technology and completely automatic lending services.
2. The Number One Choice for Young People
Young people are more inclined towards using the P2P platforms because they like the easy-to-use latest online system. Moreover, most of the time, young people don’t get loans with favorable conditions from traditional lenders like banks. That is because it requires an affluent financial background. So they stick to Peer to Peer lending platforms.
With the above P2P trends, you can find out where the P2P industry is leading and how you can benefit from it. For further help with borrowing money, you can read our brief overview on bridging loans.
How can a Bridging Loan Can Assist You?
Bridging loans work quicker than standard mortgage services. They can deliver you money within days. Whereas receiving the same amount of cash would take several months if you apply for the traditional mortgage service.
According to a study, chain break finance is one of the driving factors for obtaining bridging loans. Twenty per cent of all property deals in the fourth quarter of 2020 involved bridging loans. With a large number of property transactions occurring, many stakeholders were quitting the purchase process. That is why the clients received the bridging loan to make payments for the parties that left the deals.
One of the famous reasons to utilize the bridging loan is enhancing a property for sales or rental purposes. Moreover, some kinds of property renovation work might be outside the scope of conventional mortgage lending terms and conditions. That is where the bridging loan is helpful. According to experts, thirty-three per cent of bridging loans in the first quarter of 2021 were for business and investment purposes.
To Sum it Up
It is an extraordinary time to benefit from Peer to Peer lending. There are around three billion people worldwide who can take advantage of this industry because of the lack of traditional banking in offering similar services. Moreover, bridging loans are becoming famous for providing property related loans to those who cannot find a suitable mortgage plan.
