Direct Structure

A direct structure, in P2P lending, refers to an investment structure involving three parties – a borrower, a lender and a platform. The lender buys a claim directly against the borrower. The platform serves only as a facilitator, providing virtual space for borrowers and lenders to “meet”, enter loan contracts and transfer money. It’s opposed to indirect lending, where a fourth party is involved – a loan originator, who “owns” the loans and re-sells them to investors via a platform. Explore more differences between the two lending structures and find out what it means for your investments in our indirect vs direct investment structure explainer.