Isn’t Peer-to-Peer Lending another form of Ponzi scheme or Pyramid?
Peer to Peer Lending platforms are not new. The first one, Zopa, started more than 10 years ago in UK. Since then this industry has grown and has established a decent track record as well as good practices.
UK Peer to Peer Association has defined a set of operative rules. They are of good sense and are progressively applied by the industry all around the world.
It should help preventing unfortunate events like the fall of TrustBuddy, a Swedish platform which bankrupted after some internal fraud or like various cases in China where the market developed too fast with thousands of platforms, some of them collapsing to the detriment of its investors.
Besides, even within an established regulatory framework, frauds or collapses like the ones of KTB, Greece, Enron or Maden can happen in spite of supervision and auditors.
So what we try to do is to be as transparent as possible:
- We present ourselves with our names, faces and everybody can check our experience and track record in this industry.
- We are the owners of the company. We put our own money, nobody is hiding behind the scene.
- We disclose clear information to borrowers and investors. We don't hide that there is risk in investing.
- We will regularly publish our financial statements and audits. Any investor is welcome to visit us in our office and see how we grant credits.