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Will I Get Guaranteed Returns, Earn by Lending?

Jun 25, 2021

If you happen to be among those individuals who want to invest their money but apprehensive about the outcome, you are not alone. Lots of newbie investors would rather limit their losses and avoid short-term falls, and put their funds in a savings account or money market account. Ever thought you can make money lending money?

Well, you probably have, but for your closest friends and family, you can lend money but not charge interest, right? But what if you venture into online loan funding with possibility of a 30 percent profit from your initial investment? The idea on whether or not lending money online will give guaranteed returns may hit you. With the right investment moves, and with careful probing, an investor can secure gains through an alternative investment like lending money online.

Having a Mix of Investments

In retrospect, let us take a look first at some of the savings and investment avenues people have long been utilizing based on their needs and goals. During uncertain times, a money market account may work. What is a money market account? In brief, it is an interest-bearing account opened with a bank or credit union. The rate customers earn is higher than a passbook savings account.  

People who want to spread the risks while also targeting a higher return than what traditional savings accounts can offer turn to any of a wide array of investments. The popular options are stocks and cryptocurrencies, both of which have highs and lows. Cryptocurrency’s volatility has been noted at a time when more and more enthusiasts were bracing to cash in on the big trend.     

The international investment experts’ advice:  make sure that crypto investments are not getting in the way of your other financial priorities. These priorities include paying off accumulating debt and continually saving for an emergency fund.

An investment alternative that shows much promise of bringing in good returns or money profit while providing peace of mind, effectively addressing things like debt consolidation, bills payment, and savings for emergency, is a peer-to-peer (P2P) funding platform.

Yes, P2P can cater not just to people who borrow money. A P2P platform can offer above-market gains to  people who lend money. The easiest means of making money from loans is by lending money online to creditworthy borrowers such as startup entrepreneurs.

Perhaps you have long been eyeing only the most common ways of investing based on stories of a friend or relative who makes money. Maybe you have become too accustomed to typical bank products, stocks and inflation-protected real assets? It may be high time you widen your perspective, and reassess the rewards alongside the risks that go with every form of investment, including lending money with interest via a reputable P2P platform.

For investors into online money lending who are more after long-term goals, there is lesser concern about how soon returns for invested funds can be obtained. They can reinvest their monthly returns and optimize the gains.  Yet they would want to see where their money is going.

A P2P funding platform like Blend.ph lets lenders monitor the earnings in their account whenever they wish. After all, if you lend money for profit, you should always keep an eye on your investments.

It is good to follow the basic rules of investing before plunging head-on, foremost of which is knowing your risk tolerance and actual goals. Once that is done, keep in mind that you can do more for your money than let it sit idle, so stop dilly-dallying. As Lao Tzu said, “A journey of a thousand miles must begin with a single step.”

Money Lending Business Up Close

When it comes to lending and borrowing, banks immediately come to mind. Even during pandemic time, people continued going to banks to deposit and withdraw funds, and are compensated by getting a sense of security, and an interest rate, albeit rather low. Banking has become such an intrinsic part of Filipino culture that few individuals bother to ask how do banks make money, much less where do banks put their money.

Interest income is primarily how most commercial banks make money. Banks have a tedious process when lending out money to people who need it at the moment. The lenders need to repay the borrowed funds at a higher interest rate than what is paid to depositors.

In the world of finance and loans, you also need to understand interest rates. As an investor with money to lend, you can do the math and see how compound interest can grow your money. Interest rate is determined by the forces of supply and demand in the long-term, and set by the central bank in the short term to ensure a healthy economy.

Investors who are just starting out in money making P2P or lending money with interest can begin with minimal amounts. Those who prefer high liquidity can choose to make use of the monthly returns as the borrower begins to pay off the loan availed.  Staying invested or rolling over funds to a longer term would bring in higher gains.

Earning By Lending Via P2P

Earning by lending people money via a peer-to-peer platform can be well worth the time studying how it works. Generally, online lenders pass on the money they save in overhead to end-consumers in the form of lower interest rates. More often than not, there is a streamlined approval process. but conduct due diligence. Knowing what you are investing in is crucial.

In today’s world, finance podcaster David Stein said, “if you’re going to invest on a fintech platform, you want to know who’s behind it” and see how credible it is.  In the Philippines, the online money  lending marketplace has become well-established and has given rise to a number of industry players. Blend.ph has a proven track record and has maintained good performance, even during the pandemic.

Even with funds ranging from 5,000 to 10,000 pesos, a lender can generate interest earnings that can go to his retirement savings or emergency fund, or some other purposes. Blend.ph encourages smart saving and responsible borrowing, and can lend you money to individuals determined to start their own businesses, pay for education, medical needs, or other exigencies. 

You need to be clear on what your main goal is as you start creating your borrower or investor account using an online platform.  Take the time to know the processes, rewards, and risks, which are part and parcel of any investment.

Take it from what investment strategists say – take small risks at first so that if you do fail, you don’t get into big financial trouble. Moreover, you can take calculated risks. To reduce risks and ensure a smoother ride as investor, have a mix of investments. To help clients diversify investment and minimize the risk of loss, Blend.ph suggests funding different loan applications or investing some of their assets in Auto-Investment while using the remaining for Peer-to-Peer investment. 

Peer-to-Peer investment offers investors a higher rate of return and gain up to 30 percent of their investment in a year though this is not without risk. Auto-investment, on the other hand, offers lower risks and nine percent gain per year. Repayment of the monthly dues will start one month after the disbursement of the loan. Visit www.blend.ph/investor or send email [email protected] to learn more.

Even masters of the trade know that the path to successful investing requires open-mindedness about the different options in the market to make money grow. The Blend.ph platform can help you  get healthy returns and a reliable income stream. Make money lending money. Check out testimonials at www.facebook.com/blenddotph. To create an account, please click https://app.blend.ph/register/investor.