Day 27 - Invest in crowdfunding

If you have some money to start with, Crowdfunding is a great place to explore your options. This is not only about Kickstarter and similar platforms, We're looking more at Investment opportunities such as Zopa. This commonly called peer to peer lending and the concept is wonderfully simple. people who for whatever reason cannot borrow money through the traditional channels borrow from others. 

The beauty in this is that the risk is shared but the returns are better than the interest you would earn on savings. A person may need to borrow £2000, You put £100 into the pt together with 20 other people and share the risk. at interest rates that can be as hgh s 18% long term you only need to get a consumer credit licence once you reach a particular threshold and are lending thousands of pounds. The P2P platform will arn you when your investments are nearing the limit.

P2P Crowdfunding does give the investor a feel good element as often you actually know who the lender is and a bit about their story.