What are the issues involved in P2P retirement? Why are there still many online loans?

P2P is a platform in peer-to-peer lending, which means that lending companies provide internet financial loans through websites or mobile apps.

There are three parties involved:

Party A is the provider of funds, or, in layman's terms, the investor.

Party B is an online loan company, providing intermediary services and online loans.

Party C is the demander of funds, which is popularly called the lender.

To put it bluntly, P2P is an upgraded version of the traditional loan business. More and more investors and lenders participate in the loan business through the Internet. In order to expand the scale of funds, the intermediary company promised Party A a guaranteed income, which was particularly high. This is also the main reason why P2P attracts many investors. Intermediary companies often lend investors' money, or do other packaged projects themselves, but many times there is no way to cash in the proceeds, which has become a game of sweeping.

At first, due to the lack of funds, intermediary companies can cash out the first batch of investors and give them high interest and repayment needs. However, when more and more people join the P2P investment, the game can't be played any longer, and P2P intermediary companies start to run away. After all, the game is unprofitable. The essence is a game of empty gloves and white wolves, and the capital chain can't be virtuous, and it is getting empty.

For a large number of P2P companies, in order to attract more customers and draw big cakes, there have been a lot of frauds, which have made the investor Party A lose all his money. On the other hand, at the same time, it squeezed the lender of Party C and forced the lender to repay the principal and interest at a high price, which caused a lot of tragedies and scandals in society.

Of course, this industry has existed for some time. It is not a large-scale social problem, and the country will not easily exclude P2P companies in the whole industry. But out of control, one company was beaten, and the other went up again, so it had to be completely retired.

Of course, in the course of this retreat, three issues will be involved:

It is difficult for investors who invest heavily in P2P to get all the principal back, so don't think about the interest. It would be nice to be able to repay the principal better. Because it is fully retired, P2P intermediary companies will definitely deduct various fees in the name of management fees without paying interest. Although it is better than P2P platform, it is a big loss. In addition, the liquidation of P2P intermediary companies will delay the refund cycle in various names, making it difficult for investors to refund money.

As a P2P intermediary company, it is also one of the victims. After all, there are also companies that do business, but once they are retired by the industry, they will naturally lose a lot. After all, it takes a lot of money, manpower, technology and advertising to be a P2P intermediary company. There may also be a large number of irrecoverable lending funds, which directly leads to huge losses.

For P2P lenders, it is unsustainable that the loan funds are forced to be returned in advance or there is no capital investment in the future. Some P2P lenders simply can't repay the high debt interest, so they have to make their credit records worse. Even if they have the money to repay in the future, it is difficult to eliminate their credit records.

The total collapse of P2P industry is because the whole industry has frightened the whole society, but its business is the real objective demand of society.

As we all know, in real life, many people can't borrow from formal large financial institutions, because most commercial banks in China have strict examination and threshold requirements for loans. In addition, the traditional loan business is complicated, and it needs to constantly rush to financial institutions, repeatedly confirm all kinds of information, provide guarantees and so on.

Online lending is different. It's very simple. As long as you provide your ID card and credit history, you won't over-audit your solvency, as long as you make regular payments.

At this time, a large number of qualified financial companies can obtain a large number of low-cost funds from banks or other channels to issue loans. As we all know, the interest on online loans is very high, and some even exceed usury. The loan interest of formal online lending companies is fixed, and the interest of informal online lending is close to the edge of usury.

As an online loan company, you can get huge profits from it. As long as there is money to earn, there will be enterprises. This is why there are still many online loan companies. Online loan companies are the product of capital or wealth concentration. If they need to make huge profits, they will naturally open such a company. Marx once said in Das Kapital, "If there is a profit of 100%, capitalists will take risks; If there are 200% profits, capitalists will despise the law; If there are 300% profits, then capitalists will trample on everything in the world!

As a large number of people at the bottom of society, forced by the pressure of life, they urgently need money, but they can't get funds through formal channels. In order to survive, they will seek the help of online loans. This is also an important reason why online loans are still alive.