Learn about P2P Lending
The Investor lends money directly to Malaysia SME businesses (the Issuer/the borrower) without going through traditional financial intermediaries such as a bank.
Generally, P2P lending offers greater transparency and a fairer rate of return than traditional investments.
As with any investment product, there are risks involved when investing in P2P lending. Your capital is at risk if the borrower is unable to repay their loan.
There are two main ways to reduce risks: diversification and selection of the right P2P lending platform.
Diversification reduces concentration risk. Concentration risk is when your portfolio is too heavily weighted towards one particular investment or asset class.
For example, let’s assume that your entire portfolio consists of only 2 businesses. If one of them goes bust, you stand to lose half (50%) of your money in a single hit.
By spreading your capital across different investments, you reduce the impact of a single loan default.
B2B Finpal is regulated by the Securities Commission. Read our platform statistics here.