P2P is an online lending platform, where lending companies provide Internet financial loan services through websites or mobile APPs.

Three parties are involved here:

Party A is the fund provider, or in layman’s terms, the investor.

Party B is an online loan company, an enterprise that provides intermediary services for online loans.

Party C is the person in need of funds, or in layman’s terms the lender.

To put it bluntly, P2P is an upgraded version of the traditional loan business. More investors and lenders are brought into the loan business through the Internet. In order to expand the scale of funds, the intermediary company provides Party A with a guaranteed minimum guarantee. The income is very high. This is also the main reason why P2P attracted many investors in the beginning. Intermediary companies often use investors’ money to lend money or do other self-packaged projects. But most of the time, there is no way to cash in the profits, so they become a drumbeater. game.

At the beginning, because there was not much capital, the intermediary company could honor the first batch of investors and give them high interest and principal repayment requirements. But when more and more people joined in investing in P2P, the game could no longer be played, and P2P intermediary companies began to run away. After all, there was no profit in this game. In essence, it is a game with nothing but a white wolf. The capital chain cannot circulate in a positive way and becomes increasingly hollow.

In view of the large number of P2P companies, in order to attract more customers and expand the pie, a large number of frauds have emerged, causing investors Party A to lose all their money; on the other hand, there are also companies that squeeze Party C's lenders , forcing lenders to repay high amounts of principal and interest, brewing a large number of tragedies and scandals in society.

Of course, this industry has existed for some time. Unless there are large-scale social problems, the country will not easily clear out the P2P companies in the entire industry. Instead, it will get out of control and beat one company and another. The family got up again and had to completely withdraw.

This liquidation process will of course involve three parties:

For investors who have invested heavily in P2P, it will be difficult to get back all the principal, forget about the interest. , it would be good to return the principal in a better way. Because it is a full liquidation, the P2P intermediary company will definitely deduct various expenses in the name of management fees, etc., and will not pay interest, etc. Although it is better than running away from P2P platforms, the loss is huge; in addition, if P2P intermediary companies are liquidated and closed down, the refund cycle will be delayed under various names, and it will be difficult to return investors' money.

As a P2P intermediary company, we are also among the victim groups. After all, there are companies that do serious business, but once they are eliminated by the industry, they will naturally suffer huge losses. After all, being a P2P intermediary company requires huge investment in capital, manpower, technology, and advertising. There may also be a large amount of unrecoverable loan funds, which directly leads to huge losses.

For P2P lenders, loan funds are forced to be returned early or they have no funds for subsequent investment, making it unsustainable. Some P2P lenders simply cannot afford to repay the high debt interest rates and have to make their credit records worse. Even if they have the money to repay later, it will be difficult to eliminate their credit records.

The P2P industry collapsed as a whole because the entire industry frightened the whole society, but the business it carried out was also a real and objective need of society.

We all know that in real life, many people do not have the strength to borrow money from large formal financial institutions, because most commercial bank loans in our country have strict review and threshold requirements. In addition, traditional loan business is cumbersome, requiring constant visits to financial institutions, repeated confirmation of various information, provision of guarantees, etc.

Online loans are different, very simple, as long as you provide your ID card and credit record, your solvency will not be overly reviewed, as long as you repay the loan regularly.

At this time, there are a large number of qualified financial companies that can obtain large amounts of low-priced funds from banks or other channels to issue loans. We all know that the interest rates on online loans are very high, and some even exceed loan sharking rates. Formal online loan companies offer fixed interest rates, while informal online loan interest rates are on the verge of usury.

As an online loan company, you can make huge profits from it. As long as there is money to be made, there will be a business. This is also the reason why there are still many online loan companies. Online loan companies are the product of concentrated capital or wealth. If they need to seek huge profits, they will naturally open such companies.

In "Das Kapital", Marx once said, "If there are 100% profits, capitalists will take desperate risks; if there are 200% profits, capitalists will flout the law; if there are 300% profits, then capitalists will Trampling on everything in the world!

As a large number of people at the bottom of society, they are forced by the pressure of life and urgently need money, but they cannot obtain funds through formal channels. In order to survive, they will seek help from online loans. . This is also an important reason why online loans are still alive.