Pier to peer lending has very much entered the mainstream these days.

You can even hold it in an ISA, but what is it and should you consider it for your investments? B'O'er all the men and bienvannu at a

nautern Voldi the 5 minute that's quite enough of that.

The internet has brought us many things.

Cat videos, cookies that you can't even eat,

and more porn and you can check a stick at.

I said stick, filth.

But the internet has also brought significant change to the world of lending and borrowing.

So let's look at this brave new world, not that new actually, of peer-to-peer investing,

stick five minutes on the clock down here.

Say a quick thank you to my friends at seven investment

management for continuing to sponsor meaningful money

and let's crack on.

Time was when you wanted a loan, you went to a bank.

And the bank either agreed or didn't agree to lend you the money. Now if you have money to save

you save that money in the bank. The bank takes that money they pay you interest on, that's kind of your fee for letting the bank use your money,

what for, well for lending?

The bank takes your money, gives you interest and lends it to borrowers, charges their more interest and essentially makes a turn on the difference.

Peer-to-peer lending works exactly the same way. They take money from investors and lend it out to borrowers.

But because the peer-to-peer internet

platforms don't have branches to heat and they don't have so many staff to pay, their

margins can be smaller, which makes the whole thing better value for borrowers and also for lenders.

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