Your cash is being counted subordinated loan The first step is to research the notes available. As with any investment, you want to understand how P2P lending works and do your due diligence before you take the plunge. Start by reading the borrower’s profile, and purpose for the loan. Some borrowers don’t share many details about the loan, or why they are borrowing. This can be a red flag. Instead, invest in notes from borrowers who have more to say. Do they state the reasons for their loans? (Debt consolidation is the most common.) Is there an explanation of how the borrower plans to repay the loan? And, if there is bad credit involved, are there extenuating circumstances?