This allows investors to maintain liquidity if they’ll need access to that capital in the short- or medium-term.
Short-term in nature: Many P2P loans are short-term in nature. The loans may only be for a year or less, particularly if the owner only needs bridge capital, construction financing or other short-term capital. Most borrowers will then recapitalize using more traditional lending products. This allows investors to maintain liquidity if they’ll need access to that capital in the short- or medium-term.