What’s the difference between peer-to-peer and balance sheet lending?

Ever since peer-to-peer (P2P) lending started to take off in 2011, there has been widespread confusion about what exactly it is and how it differs from other, more familiar types of lending, such as the mortgages, personal loans and credit cards that most of us get from our bank.

Secured and Unsecured Lending

What’s the difference between secured and unsecured lending? That’s a no-brainer, right? Secured lending has a safety net; you can seize assets from the borrower if they are unable to repay their debt, and sell them to get your money back.

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