The general P2P platform has its own risk control measures. In addition to a detailed investigation of the borrower's economic benefits, management level and development prospects, it is very important to increase the protection of investors' funds. Peer-to-peer companies will find a guarantee company to guarantee the investment principal and expected income, and ensure that even if the borrower cannot repay, the funds can be paid safely. But after all, finding a formal and qualified guarantee company needs to bear the corresponding expenses. In order to save these costs, some P2P companies set up their own guarantee companies instead of looking for a third-party guarantee company. This form of guarantee only plays a superficial role in deceiving investors. Once there is a risk, the guarantee company will close down with the platform. Therefore, when choosing a P2P platform, we must understand the strength and background of the guarantee company chosen by the platform, and never have a direct relationship with the platform.
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2. Is it the cash pool operation mode?
When the P2P platform is operating, if the matching between investors and borrowers is strictly adhered to, it will often happen that investors have money but no projects to invest, or borrowers are willing to bear high borrowing costs but no investors are willing to contribute temporarily, which will hinder the expansion of the platform to a certain extent. Therefore, some P2P platforms began to operate in the form of fund pools to expand their business as much as possible. What is a pool of funds? To put it simply, the platform will first put the investor's funds into the account designated by the platform, and then match the borrower or loan project. In the time difference between these two actions, funds stay in the platform account, forming a pool of funds.
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In the fund pool model, it is impossible to know where the borrower's funds will eventually flow, because all the funds in the fund pool have been disrupted. The fund pool model can absorb as much funds as possible for the platform, but risks also arise. In this way, the pressure of redemption has quietly shifted from the borrower to the platform. In the one-to-one correspondence, the investor owns the creditor's rights of the borrower, while in the fund pool, the investor actually owns the creditor's rights of the platform, which is equivalent to the platform raising funds from the investor and lending them to the borrower. If the total amount of loans is small and the pool of funds is huge, the pressure of interest will be entirely on the platform, which will easily lead to the break of the capital chain and bankruptcy. Therefore, when choosing a P2P platform, we should also be cautious about the platform operated by the fund pool model.
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3. Review the qualifications of borrowers.
In recent years, due to the huge profits of real estate and resources and the meager profits of manufacturing industry, a large number of business owners have deviated from the real economy and turned to invest in real estate and virtual economy, and the hollowing out of enterprises has become increasingly serious. Some online lending platforms have also shifted from supplementing the short-term liquidity of small and medium-sized enterprises or private enterprises to real estate, minerals, private equity, art, gambling and other fields. However, with the economic transformation and the surge of business risks, these industries have entered the sunset, and it is difficult to bear the corresponding risks with the risk control management level and financial strength of online lending platforms. Therefore, when choosing a P2P platform, it is necessary to have a certain understanding of its real borrowers and the risk control capability of the platform.
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Although there are various risks in the industry, as long as investors invest carefully, do not blindly pursue high interest rates, and stay away from platforms and many industries that are self-financing, opaque information, self-guarantee, and fund pool mode, they can still screen out inferior platforms, leave high-quality platforms, and make their wealth grow steadily.