For these borrowers, it is not necessary for them to give loan collateral, but to determine the loan amount and interest rate by knowing their identity information and bank credit report. The intermediary made a detailed investigation, provided this information to the fund lenders, and collected income such as account management fees and service fees, and they directly reached an agreement.
P2C is the abbreviation of individual to company, which means that individuals borrow money to invest in the company's business through the Internet platform, return the investment interest regularly, and automatically return the principal after the project ends. It is another innovative model after P2P, and its advantage lies in that it is an investment and loan made by individuals to reputable companies through the media.
Differences between P2P and P2C:
L P2P borrowers are mainly individuals, mainly credit loans. Personal mobility is high and the cost of default is low. Due to the high cost of credit audit, the platform and audit institutions are required to be professional and controllable. If they can't conduct real-time return visits and monitoring, it may lead to a high bad debt rate.
L P2C borrowers are mainly enterprises, with relatively fixed enterprise information and operation, stable cash flow and repayment sources, easy information verification, and the default cost of enterprises is much higher than that of individuals.
L P2P generally takes the form of credit loans, and now some have joined the mortgage and guarantee.
L P2C requires that it must be guaranteed and mortgaged, and the security is relatively better.