Cut out the Middle Man

One of the major advantages of peer-to-peer lending is that it eliminates the middle man. You've heard of the phrase "cut of the middle man." It is usually used to describe the distributor of goods. It means that you are eliminating one entity who is trying to may money.

Peer-to-peer lending is eliminated the middle man -- that is, the bank. By eliminating the bank borrowers can obtain a loan at a lower interest rate since there is one less entity trying to get paid, and the lender, those people who are loaning money to their peers, can obtain a higher rate of return.

So cut out the middle man with peer-to-peer lending.