Financing Influence Factors And Risk Assessment On The P2P Lending Market

P2P Lending(Peer-to-Peer Lending)is a kind of financial service model based on the Internet,through the network lending platform to achieve the transaction between the two sides of the loan.This kind of network lending model originated in western countries,such as Prosper in the United States and Zopa in Britain.By decades of development,Prosper and Zopa enjoy the highest reputation in the field of International P2 P network lending with a convenient and friendly interface,low and differentiated loan rates.In China,P2 P lending market set up for about ten years since 2007,emerging a large number of outstanding lending platforms in these ten years,such as PaiPaiDai.Ren RenDai and YiRenDai.This new model of lending provides financing for the low-income people and small micro enterprises who need funds urgently.Because of their smaller scale and higher risk,it's difficult to get a loan from the bank,so the new financing way helps them get rid of the financing difficulties.P2Plending market is developing rapidly,but also faces the following three problems.Firstly,the loan availability on the network lending platform is relatively low.Secondly,the loan cost on the network lending platform is much higher than the bank borrowing rate.Thirdly,a large number of network lending platforms emerged,and some risk platforms run away with a lot of debts.Some platforms cannot guarantee the safety of investors' funds.So for investors,it is particularly important to choose a platform with higher comprehensive rating.There is a serious asymmetry of information between borrowers and investors in the P2 P network lending market,which has a negative impact on the loan availability and cost.So reducing the information asymmetry between borrowers and investors become the focus of the development of network lending market.If a borrower providesbetter “hard” informationand “soft” information,it can effectively alleviate the information asymmetry of the both.In this paper,PaiPai Dai is used as a research platform for related issues.Based on the collection of domestic and foreign literature and relatedtheories,the factors that affect the borrower's financing are divided into three basic variables: loan information,hard information and soft information.It will use the combination of theoretical and empirical research methods to find out the factors that affect the loan availability and financing cost,and put forward some feasible suggestions to improve the present situation.At the same time,the paper will use the factor analysis method to grade the risk of the P2 P lending platforms from the aspects of capital dispersion,capital liquidity and financial leverage.And,it will concentrate four common factors to give the comprehensive risk rating of the lending platforms.Then,it will give the suggestions to investors for selecting high-quality platform.The results will prompt the network lending platform to improve their ability to resist risks by establishing their own risk control system.It will be the security platform that both sides are willing to trade.At Last,the paper will put forward some suggestions of the market supervision for the lending market healthy development.