Basically, peer-to-peer (P2P) lending is the act of lending money to an individual or business without the involvement of a bank.
This is done using a P2P platform, which brings lenders and borrowers together.
The amount that you can invest into P2P lending per year depends on your investor classification.
In early 2019, the FCA introduced new rules limiting the amount that everyday investors who are new to the sector can invest in P2P lending to 10% of investable assets.
This limit has been put in place to protect investors, ensuring they do not over-expose themselves to risk.