What is peer-to-peer lending?
Peer-to-peer and peer-to-business are relatively new concepts in the field of lending and borrowing. Traditionally, individuals or businesses would save their money in a bank, and the bank would then lend that money to other individuals or businesses. Peer-to-peer financing steps in to this process - in place of a bank - and creates a mutually beneficial platform bringing borrowers and lenders together. This process can also be referred to as social lending or crowdfunding.