Question: What is the additional risk facing a lender on a P2P platform operating in an unregulated jurisdiction, compared with mature markets such as UK/US? Borrower
What is the additional risk facing a lender on a P2P platform operating in an unregulated jurisdiction, compared with mature markets such as UK/US?
- Borrower is unable to pay up in default.
- Founders of P2P platforms abscond with investors money.
- Lender is unsophisticated enough to properly assess whether a P2P loan will default.
- Borrower is frequently late in making repayments due to cashflow problems.
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