Research On The Guarantee System Of P2P Lending

Folk P2 P lending prospers in recent years as a new form of private financing. Its fast thriving has been fueled by the long-lasting structural imbalance of our domestic debt market. It is neither the traditional indirect financing through financial intermediates nor the direct financing via capital market. This new form of financing to some extent energizes the financial market, providing a groundbreaking solution for the financing needs of median and small size corporations and individuals. However, some problems such as different operating models and vague roles of these platforms, lack of uniformed credit rating systems and integrated credit valuing mechanisms in judging the creditworthiness of borrowers and slack regulation and law enforcement are all hindering the development of these platforms. Therefore, it is pivotal to any further development of P2 P lending to tease out the legal relationships between the principal party and other participants in the process of P2 P lending, clarify the roles of P2 P lending platforms and institute efficacious supervisory and regulative protocols.To explore the advantages and disadvantages of various P2 P lending platform guarantee mode, guarantee model of lending to optimize the P2 P lending platform, will be the focus of this thesis. In the process of P2 P lending development, produce a variety of business model, from the initial credit lending to demand guarantees and the guarantee model of segmentation. To explore the guarantee mode is beneficial to the development of P2 P lending industry.The first part is a basic overview of the P2 P lending. Historical development of the business model and P2 P lending platform to sort out, and foreign P2 P lending institutions were briefly introduced. To define the concept of P2 P lending through P2 P lending to other Internet financial model conceptual distinction, summed up the characteristics and role of the P2 P lending.The second part is the status of the P2 P lending guarantee system perspective. Whether to provide guarantee and guarantor for standard for P2 P lending operation mode is divided into unsecured loans platform, P2 Plending platform to provide guarantee, the third party guarantee mode and the borrower guarantees four kinds of mode. Initially, the unsecured mode is the micro-credit loans, which are the initially P2 P lending to attract investors and borrowers the most important feature. With the development of the secured loans malpractice gradually, restricted the development of P2 P lending. Immediately, many P2 P lending platform began to strengthen the borrower authentication, based on borrower information(identity card, residence booklet, credit card, proof of income, etc.) the amount and quality of the level of its credit level and other ways to reduce risk. Because of the virtuality of network and abound existence of information faking which due to information offering electrification, it gives rise to great risk of many P2 Plending platform.Additionally, the P2 P lending platform dislocated its law status, whether it possess qualification of guarantee and operation still needs to be discuss. Afterwards, parts of online loans platform draw lessons to take in professional guarantee corporation as their investor guarantee, which transform the risks of online loans into guarantee institution. In fact, it doesn’t decrease the high risk of online loans, the outcome of this behavior leads to guarantee company go bankrupt which undertake high risk. In the end, the pattern of online loans which borrower provides guarantee seems to be the safest one. However, it exists many problems. For example, narrow range and restrict flow of collateral.The third part is concerning optimize and suggest online loans guarantee. According to the perspective of each guarantee pattern, firstly, we put forward the pattern that the online loans strictly limit credit loans. Secondly, it presents that we should pay equal attention to the efficiency and security of online loans. Also, some other sug gestion and measures are proposed, such as the role return of online loans platform an d the virtual borrower guarantee and the modal guarantee institution security.Ultimately, we come up with some mating systems to complete online loans guar antee. The systems can be described as optimize online loans credit investigation route and enhance supervise intermediary services.