Peer to Pool

Peer-to-Pool is an alternative approach to the Peer-to-Peer method. Traditional Peer-to-Peer lending networks are highly inefficient. Here are the primary reasons that make Peer-to-Peer lending ineffective:

• Borrowers must wait for lenders to approve their demands.
• Borrowers must pay interest in full even if repayment comes before the term agreement’s expiry.
• Even though borrowers can renegotiate term agreements, they must wait for the lender to review and agree on those. Sometimes the procedure becomes lengthy, and they lose their assets due to liquidation.

There was a desperate need to create an underwriting pool that enables borrowers to get instant liquidity without negotiating conditions. Hence Peer-to-Pool mechanism was founded to overcome these drawbacks with Peer-to-Peer lending.