Due Diligence

Due diligence is an investigation into the financial records before entering into a transaction with a party. In P2P lending, platforms usually perform due diligence on loan originators upon accepting them on the site or during periodical reviews (in indirect lending structures) or on borrowers and/or their projects before making deals available to investors (direct lending). Read more about how the process is conducted in our guest post on due diligence in peer-to-peer lending.