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Lending like a Bank

Peer to Peer lending is a new way to invest money and receive HIGH returns on your investment dollar, while minimizing overall risk to a portfolio of assets.

Bankers divide a portfolio of available assets for funding over eligible borrowers with varying default risk. Bankers realize that a PERCENTAGE of customers within a risk group will default over time. The key to the success of a banking institution is the ability to manage that risk with diversification between the different risk levels to achieve a rate of return that offsets that default risk.

Now I'm sure your thinking, I'm not a finance major, how am I going to be able to judge the risk of a portfolio. Your right, it would be complicated and difficult, but you actually don't have too. Lending Club has provided online tools that automatically group potential borrowers into risk categories and track delinquency rates. The site makes it easy to make decisions like a banker, as it gives you simple tools to put together a portfolio of lending options. The benefit is a higher RETURN on your investment than you normally have access too with more traditional savings options.

Check it out. Start small. Invest $25 to $100 to get familiar with your new role as financier to the world.