Lending money is easy. Lending money well is much harder.

Wise words from the CEO of a leading UK P2P lender in an interesting article by David Stevenson for Altfi:

But for me the most important point came in a comment from LendInvest’s boss Christian Faes following the announcement of his excellent results. 

Christian observed that “the world of P2P is a slightly bizarre one in that there’s a lot of talk about how much platforms are lending. But for the industry to mature, investors should start looking at how viable underlying business models are, rather than simply how much a platform has lent. 

Lending money is easy. Lending money well is much harder. 

At LendInvest we are lending substantial volumes but, more crucially, we are a profitable business without having to rely on external funding to stay alive.” 

And what’s true of alternative finance is also true of virtually any disruptive business sector transformed by technology. Bet on profitable businesses with sound business franchises where the revenue lines are transparent and obvious.