Online peer-to-peer (P2P) lending is a relatively new phenomenon where individuals can lend money to other individuals, often without the involvement of a traditional financial institution like a bank. By removing the middle-man both borrowers and investors can realize additional benefits like higher interest rates (compared to other investment options like certificates of deposits, bonds, or Treasuries) and control/transparency for the lender, and easier access to capital for the borrower in the form of lower interest rates, quicker loan disbursement, and an online application process.
For the investor the primary risk of P2P lending is borrower default, e.g. when a borrower is unable to repay their loan. In addition, P2P investments tend to be more illiquid; investors have limited access to a secondary market like a stock market exchange to buy/sell Notes (though investors typically receive monthly payments of interest and principal into their P2P account where they can reinvest in other Notes or withdraw their cash).
Prosper and Lending Club are the two largest P2P companies. Both focus on providing personal loans to individuals who are primarily looking to consolidate credit card debt.
At Mosaic we take a slightly different approach. Investors at Mosaic invest in Notes that support businesses looking to build solar projects. Mosaic loans fund real assets in the form of solar panels that will generate electricity and create a revenue stream for the borrower. Through Mosaic, solar project developers looking for capital can receive funding from individual investors all across the country looking for competitive P2P returns while also supporting solar energy.
Our expert project finance team conducts a comprehensive due diligence on each solar project so that we mitigate risks. To date Mosaic has experienced 100% on-time repayments.
Our mission is to democratize and decentralize clean energy production and shift power back into the people's hands. By investing at Mosaic you'll contribute to our country's energy independence, help preserve our environment for generations to come, while also earning a solid return. We want to open up energy and true prosperity to all. Join us today.