Peer-To-Peer Lending

Peer-to-Peer lending is a method of borrowing money directly from other individuals through an online platform, without involving a traditional bank.

1. 1One person needs money (Borrower).
2. 2Another person gives money (Lender).
3. 3An online platform connects them.
4. 4The borrower returns money with interest.

Debt financing means borrowing money that must be repaid, usually with interest.

1. 11. Trade CreditBuying goods from a supplier now and paying for them later.
2. 22. Accounts Receivable FinancingGetting a loan using money that customers have not paid yet as security. Example: A company has to receive Rs. 50,000 from customers. It uses this amount as security to get a bank loan.
3. 33. FactoringSelling unpaid customer bills to another company at a lower price to get cash immediately.
4. 44. Finance CompaniesCompanies that provide loans against stock, machinery, or unpaid bills. Example: A finance company gives a loan to a factory against its machinery.