The main operation mode of p2p investment and financial management is online service. Investors and borrowers cooperate directly on the Internet. The main operating mode of microfinance companies is offline service. Face-to-face cooperation between investors and borrowers on the Internet has geographical restrictions.

Difference 2: the nature of the company is different

In the whole lending relationship, p2p financial platform does not participate in any capital transaction, but only acts as an intermediate relationship, linking borrowers and investors together and providing them with corresponding services. Private lending companies are different. Their main business is to provide all kinds of small loans to attract the majority of borrowers to come to the loan.

Difference 3: the charging method is different.

Peer-to-peer is a person who has money and investment ideas. P2p lends money to other people who need loans by means of credit loans through qualified intermediaries. And collect account management fees, service fees and other income. Small loans are small loans, and companies only charge corresponding interest. Interest rates will be higher. P2p is an agency that provides intermediary services. Micro-loans are for more people to borrow.

Difference 4: Different interest rates.

The loan funds of microfinance companies all come from shareholders, so the interest rate is relatively high (there are no other hidden costs). The lending funds of p2p credit institutions all come from investors, which is a person-to-person service. So the interest rate is slightly lower (there are other additional fees).