If you’re in the market for a loan, there’s a good chance you’ve come across “peer-to-peer” or “P2P” lenders.

Peer-to-peer lending relies on a crowdsourcing model where other people can fund your loan. Unlike GoFundMe, these aren’t people you know. These are third-party investors.

Peer-to-peer funding attracts two different types of people: borrowers who need money and investors who want to make money funding other people’s loans.