Peer to peer Lending
The practice of lending money to individuals without the use of an official financial institution as an intermediary. Peer-to-Peer lending is often facilitated through online platforms, which are able to offer good rates due to their efficiency.
Peer to peer marketplace lending
Marketplace lending is individuals and/or companies lending to other individuals and/or companies in return for interest payments using an electronic platform. Whilst peer to peer lending (P2P) is many individuals pooling their money together to lend to a specific individual or business for a particular purpose directly, rather than via a bank. Usually, this takes place via a website platform. Here at Lendy we are experts at Marketplace lending, our loans are secured against UK real estate as security and the interest rate agreed will vary loan to loan according to our assessment of each case.
Personal Liability
Personal Liability is a financial obligation that an individual is responsible for.
Personal Loan
Personal Loans are loans which are issued without a security/asset as collateral. They are also referred to as unsecured loans. For example, a personal loan may be a loan used to finance a wedding.
Persuasive evidence:
Evidence that the borrower has a viable exit strategy, for instance an offer of finance.
Portfolio
Portfolios are a grouping of financial securities or assets (bonds, stocks, equities). They are either 'managed' by financial professionals or 'held' by investors.
Portfolio Performance
Portfolio Performance involves understanding how well a managed portfolio has performed in relation to comparison benchmarks.
Prepayment
Prepayment is the payment of a debt before it is due.
Prepayment Penalty
A Prepayment Penalty is a clause in a loan contract confirming that if a loan is pre paid before the due date a penalty will be applied.
Principal
Principal is the amount of money that is actually borrowed. If for example you were to take out a £10,000 loan, this is the principal. By the time you pay back the loan, you may pay back £12,000 (depending on the interest rate). The £2,000 is the interest and the £10,000 is the principal.