There are so many individuals and companies looking to borrow money, it is sometimes hard to remember that there are people who have money to invest or lend. Many of these individuals do not know how to get involved with this, and today we will discuss a couple of strategies to follow.
The first is indirect lending. If you are not comfortable deciding who is worthy of a loan, or what rate to set, etc. You may want to create business loans indirectly. The way to do this is through capital investment in a publicly traded company that provides these types of loans. Furthermore, if you have a great deal of industry knowledge in a particular field, you can invest your money into common stock in a company that lends out money to companies in your field. This industry knowledge will give you the macro level information you need to know in order to make safe investments.
Another strategy is direct lending through collectives or peer to peer. There are investment groups formed up to help individuals pool their resources for investment. In this way you can lend to larger enterprises with a great chance of success and greater profits than many small ventures. These groups can now be found online and can grow in size to hundred or even thousands of individuals.
Alternately if you want more of a personal touch you can lend your money directly through peer to peer networks.These allow you the safety and security of escrow and legal contracts, while providing the personal involvement of picking your borrower and tracking their progress as they repay you from their business profits. This can be a very excited and satisfying to furnished business loans.