The so-called P2P credits, or credits between people are increasingly known in our country. But what do they consist of? How do they work? How can they be applied for? We tell you everything in this post.
P2P Credits: What are they?
P2P credits or credits between individuals is a new way to finance and invest. Through this alternative financing, people and companies get financing directly from other people who lend them their money. Between borrower and investor there is a P2P platform, which through the internet is in charge of putting them in contact and executing the mandates of both parties.
In short, through P2P loans borrowers get financing in the form of loans directly from other people who lend them their money, all through an internet platform. MytripleA offers the P2P service for investors who want to lend money to companies in exchange for a return.
Are P2P credits regulated in Spain?
Yes, Law 5/2015, of 27 April, on the promotion of business financing, regulates this activity under the heading of Participatory Financing Platforms, which is the name that the regulator has given to the companies that carry out P2P credits. According to this law, any platform that wants to provide the service of loans between individuals, P2P credits or participative financing (all these terms refer to the same thing), must obtain an authorization from the Comisión Nacional del Mercado de Valores (CNMV). MytripleA has recently obtained this authorization, which allows us to offer the P2P credit service with total security for our customers. If you want to have more information about this law, check out this post on our blog.
P2P Credit vs. Bank Credit
The main difference between a bank loan and the financing of a P2P loan is the origin of the funds, since in the case of the former the money is contributed by a financial institution with a bank statement, and in the case of P2P loans, the funds are contributed by a variety of individuals. For example, a P2P credit can be participated by more than 50 investors and this is where the role of the platform that articulates them comes into play, as it is responsible for managing the money of all of them, collecting from SMEs the fees for the loan and distributing it among all investors. For these procedures MytripleA has the Payment Entity license nº 6869 granted by the Bank of Spain.
P2P Credit: Advantages for the applicant company
When an individual or company is financed with a P2P loan or credit, it obtains financing with the following advantages:
P2P credits without travelling, as everything is done online through the participative financing platform.
Very short procedures. The processing of the application is extremely fast and the company gets a response in an average of 48 hours from completing the application in the case of MytripleA.
No additional products: no additional products or services to purchase
It does not consume CIRBE.
Free amortizations. In the case of MytripleA, companies will be able to amortize their P2P credit both totally and partially, totally free of charge.
The investor in P2P credits
Investing in loans between individuals is a way of generating attractive interest because it offers the investor the return that until now was reserved for banks. More and more people choose to make their money profitable by lending it directly and in exchange for an interest rate to other people or companies. Platforms such as MytripleA offer investors the ability to easily create a diversified portfolio of loans, which is generating an attractive return, plus the satisfaction of knowing that their money is helping to finance the real economy.