What to look for in a specific P2P platform
Before you start investing through any P2P service, it is worth spending a little time and studying it. I have not yet met frank fraudulent services, but the tips below will help you understand what the investor will have to face.
View company information on the platform website. It will not be superfluous to check the legal entity of the platform in the same way as you would check potential borrowers. Pay attention to how long the activity has been going on and how long the site has been registered (you can check through the WHOIS services, for example whois.net).
Read the documents available to investors on the site. This may be the “License Agreement”, “Terms of Service Use”, “Agency Agreement”, the form of the agreement with the borrower. If there are several such documents, it is desirable that they do not contradict each other – this happens when changes are made not to all documents at once.
In the documents pay attention to these points:
How to notify about changes on the platform. Someone suggests that users monitor everything on their own, while others do not allow them to make new deals until the participant accepts the updated conditions.
Platform Rates. Who and what pays the fees for using the service.
How is tax withholding? The service can assign it to the borrower (if it is a legal entity), to the investor, or to act independently as a tax agent.
Try to call the phone number listed on the platform website. When you need to resolve any issues, a “live” contact number will come in handy.
Read reviews on the forums.