Whether you’re a borrower or a lender, find the best P2P site by following these tips:

If you want to borrow money:

• Check the longevity. See how long a site has been in business. While a company’s founding date is not a measure of future performance, you’ll at least see which ones have established a track record.

• Determine the specialty. Before you choose a P2P site, see which ones focus on your needs. For example, it you’re looking to convert your student loans to one with a lower interest rate, two sites now specialize in education debt— Fynanz.com and CollegeDegreeFund.com.

• Measure client satisfaction. One way to do this is to check independent online chat groups and read the praise and complaints. You can do this by typing the P2P site into Google + “forum.”

• Know the terms. Read the site’s frequently asked questions (FAQ) to understand the rules, fees and risks—minimize disappointment.

• Verify the score. Check the P2P’s credit-score cutoff point. Some sites use 640 as a minimum. Only consider sites where your credit score is higher than the one used. Doing so will make you more attractive to lenders. You can use the site if your score is lower, but you will be designated as a “high risk” borrower.

If you want to lend money:

• Do your due diligence. Check the site’s longevity, client satisfaction and bank the site uses (see above).

• Understand the risks. Most P2P sites explain the risks you face as a lender and what the site will and won’t due if a borrower is late paying, does not pay or defaults.

• Consider making several small loans rather than one large one. This strategy will help you diversity your risk and improves the odds of higher returns, since you’ll likely hold many loans with different rates rather than just one.

• Vet the borrower. Like eBay, many sites let you see buyer information and even contact the borrower to learn more about the individual or loan need. Consider contacting borrowers and asking for more information about their need for the loan and how they plan to repay it. You will, of course, be at the mercy of whatever they tell you, but banks have no guarantee of repayment either. Banks reduce risk by making lots of loans and lending only what they think they can afford to lose if a borrower defaults.