P2P investing vs other yield-based investments

The financial crisis in 2008 may be 10 years behind us now, but the financial instruments it created are still expanding at rapid speed to satisfy the demands of an ever-dynamic market.

Obtaining a bank loan became a lot more difficult after the collapse – the business sector was in urgent need of low interest rate loans, while lenders left their doors open only for high-return investments.

The financial crisis sparked the creation of a new form of investment that has made a huge impact. It gave an opportunity to eliminated a lot of the inflexibility that occurs with the traditional banking.

What is P2P?

P2P investing is a product of the FinTech revolution, which makes connecting investors and borrowers easier in a way that has never been available before. Thereafter new forms of P2P platforms appear, such as iuvo, that connect investors and lenders (credit companies).

P2P embodies a lot more benefits over traditional banking methods – for one thing, one would never need to walk into a brick-and-mortar office to sign for a loan or to make an investment, as this form of trade entirely takes place online.

Both sides “meet” digitally, thanks to peer-to-peer platforms from the first kind, which gives small businesses the opportunity to get a loan easy and quick, as well as it gives transparent and controllable investment for the investors.

Rather than loaning money to a single entity in the form of a lump sum, P2P allows loaning to multiple parties, while the investor maintains complete control over who the money goes to. This diversification eliminates a lot of the risks, associated with traditional lending and unexpected credit defaults, without inflating the transaction costs.

This system works fantastically for borrowers as well, for they can rely on multiple smaller investors. They can find cheaper loans and potentially reach a much wider range of investors, instead of just one.

And there are the new kind of peer-to-peer platform, like iuvo, which give you the opportunity to make profit out of your savings by investing in loans, that are already granted.

What is the difference between P2P and the traditional forms of investing?

Traditional forms of investing are not as attractive as they once appeared to be, especially when there are much more profitable next-generation financial mechanisms.

Bank deposits are not only very cumbersome and outdated, but the current interest rates are laughably low. Investing your money through iuvo could bring you rates of up to 15,22% – these are digits traditional banking can arguably ever reach in its current form.

Speaking of high returns, real estate has always been seen as one of the safest and most profitable investments, but P2P presents much more lucrative options for your money. Taxes, maintenance, bills, insurance, and other expenses normally associated with real estate are not present in any kind or form in P2P transactions. Putting your money in real estate involves contacting multiple people, dealing with representatives of governmental institutions, and does not provide the ease of operating with your own finances that P2P does.

Last but not least, we need to say a few words about investing in precious metals. Despite the significant price drop in recent months, gold and silver still remain one of the most secure investments in the long-term. Nevertheless, buying precious metals and luxury goods requires a high level of understanding and expertise, especially if you are looking to score big. This, understandably, needs dedicating a fair amount of personal time, which iuvo can save you. By using iuvo, lenders are able to guide the stream of their capital with ease and great transparency at every step without having solid knowledge or continuous monitoring of the market.

How can we exceed your expectation?

Iuvo provides you with comprehensive loan score classes. You receive clear guidance as to what returns to expect in each class, while our platform helps you create a personalised strategy for your investments.

Iuvo’s success in the P2P arena is more than measurable, but our true pride streams from the success our clients achieve. The loudest statement of our expertise as a mediator between investors and lenders is the exponential growth of our loan portfolio – it currently encompasses between 20 and 30 thousand loans free for investment on the primary market.

Our knowledge and years-long experience in the finance industry has enabled us to create a product that is both easy to use and highly efficient for our clients. Iuvo’s professional customer support team is there to help you make your way through your investment journey, while the user-friendly interface prevents you from feeling “stuck” or incompetent with regards to your own finances.

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