Balance Sheet Lending

Balance sheet lending is a type of marketplace lending with an increased platform role, which acts more like an informal bank (or a non-bank credit intermediary). The platform originates and actively funds loans, fully or partially,  and retains them on their balance sheet (hence the name). If a loan defaults, the risk of financial loss lies with the platform operator too, and not solely with the lender as in the “pure” P2P lending model Learn more about balance sheet lending and how it differs from peer-to-peer lending in our explanatory guide to balance sheet lending.