That is, the transfer of creditor's rights from person to company or platform is another new concept of Internet finance after p2p. At present, there are about five P2C online lending platforms in China.
What are the advantages of P2C?
1, the investment threshold is low, just a few hundred yuan;
2. High yield;
3.P2C platform plays an intermediary role, neither financing nor lending;
4. Individuals hold corporate creditor's rights, with small risks and high returns;
5. The financing party of 5.P2C is an enterprise, which needs collateral and the risk is more controllable;
6. Internet resources integration, low operating costs.
What are the risks of P2C?
Compared with P2P, P2C is much less risky. Borrowers are all enterprises, with mortgage, pledge or physical guarantee. Generally, the loan amount of enterprises is relatively large, and the project income is also high. It needs the funds of multiple investors to invest, and the borrowing time varies from 1 month to 6 months. Once overdue occurs, the collateral can be realized immediately and repaid to investors, or the guarantee company can intervene in compensation to reduce the risk of investors. P2P is basically a personal credit loan, which is prone to overdue.
What's the difference between P2C and P2P?
1, different modes
P2P: Person-to-Person Mode
P2C: Personal-to-Business Model
2. Different borrowers
P2P borrowers: borrowers or borrowing enterprises, mostly borrowers.
P2C Borrower: Borrowers or borrowing enterprises, most of which are borrowing enterprises.
3. Different credit.
P2P relies on personal credit status, such as salary income and personal credit records.
Most financing parties of P2C are enterprises with collateral.
4. Different risk control measures
The principle of P2P risk control is risk dilution, just as an investor has 500,000 funds to lend to five borrowers. If everyone gets 6,543,800+yuan, even if one or two loans have bad debts, it will have little impact on the overall income of investors.
P2C controls risks through collateral provided by financing enterprises or guarantees provided by guarantee companies, which is completely different from the risk control principle of P2P, but the risk control is stricter and the funds are safer.
P2C online lending model is still in the early stage of development, but many P2P platforms have gradually stopped making personal loans and started to contact corporate loans. In fact, this is a good proof that P2C is the future development trend.