Have you ever considered investing in a trust deed? This is a form of financing that allows small investors to make money the same way huge financial institutions like commercial banks do. Trust deed investing involves purchasing a loan to a borrower as evidenced by a promissory note. The promissory note is a written contract that stipulates the amount of loan given and the interest rate andfrequency of payments to be made. The promissory note also includes details on when the borrower is to repay the principal.
Since many financial institutions have made it difficult for people to access financing, people have turned to social lending. This is a form of lending where small investors fund a business idea or venture and then are later given back the amount borrowed together with an interest. However, the borrower must prove that their idea is profitable before gaining the trust of investors
Whether you choose to invest in social lending or any other form of financing, make sure to do comprehensive research. Many people have faced significant losses after venturing in a form of investing that possesses high risks. Evaluate your risks carefully and realizea what you are likely to earn when you invest in any form of financing.