What are the reasons for the collapse of P2P platform?

First, the initial and sole purpose of some platforms is to illegally raise funds through the Internet. This platform is a Ponzi scheme in the Internet age. It attracts investors with high interest rates and short-term bids, and uses new investors' money to pay interest and short-term returns to old investors, creating the illusion of making money, thus further defrauding more investments.

Second, some platforms may be the same boss or some related platforms. These platforms just want to cast a wide net and catch more fish. In order to collect more funds, it is illegal to raise funds in essence.

Third, some P2P platforms have become enterprises' own tools. Self-financing in P2P internet finance should be kicked out of the mountain gate, because the essence of P2P is to help lenders find funds to alleviate urgent needs and help investors find suitable projects and earn profits. In fact, self-financing means that an entity establishes a P2P online lending platform, and the funds on the platform are mainly used for blood transfusion to its own enterprises or affiliated enterprises. As the saying goes, it is to raise money for your own use. With the supervision measures in place, this situation will be improved.

Fourth, risk control is not done well. In fact, most P2P platforms are based on the principle of doing a good job in Internet finance. The reason why they closed down and ran away was largely because they did not do a good job in risk control. As we all know, the most difficult part of P2P Internet finance is risk control. The risk control of many platforms has no corresponding qualification or experience, and the audit materials are not strict, which leads to "standard deviation" and "standard deviation" on the platform. Some are still large loans. As a result, the platform accumulated a large number of subprime loans, and a large number of lenders failed to repay them within the time limit, and the loans could not be recovered on time. In addition, the registered capital of the platform itself is not strong enough to bear a large number of overdue loans, which leads to the failure of the platform to operate normally.

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