P2P loans

[HighlandTiger]

Just wondering if anybody has any experience with any crowd funding loan companies. Good or bad?

[ArthGoch]

Have or currently are investing in six of the main companies.

 

Very much of a muchness in respect of returns. Also all of them have been very good in respect of customer service and by the nature of the platforms return of investment plus interest is automatic.  Is there anyone in particular you were looking at? 

[HighlandTiger]

not really looking at any specific but I am considering putting a small amount into some of these companies on a test basis. Any you can recommend?

[ArthGoch]

For low hassle and minimum chasing of potential yields Zopa and Wellesley and probably as good as you will get.

 

The former you can set against risk categories and the amount of default that is forecasted; that is higher potential yields v higher risk. The default over the three years has been impressively low and when compared to the market. Similarly this P2P loan book is retail ( general public,) and where historically bad debut has been an issue .

 

Wellesley is more of a traditional format akin to fixed rates and fixed periods but with this being set against physical assets. To date there has been zero default, but they have a clever algorithm which offsets debt by small segments and across all investors. When they entered the market they were offering some extremely good rates, but overtime these have eroded; but that said still better than the banks 

 

Potentially higher yields can be gained from auction type sites and where you track your stake against a tier of %  return. Although you pre bid etc to maximize this type of return it is akin to watching ebay auctions and putting you bid in with a nanosecond to go! 

 

Hope this helps

 

NOTE TO ALL :

The above does not constitute a recommendation 

your investment is at risk......... blah-blah-blah.

No compensation scheme........ blah-blah-blah.

We are all big boys and girls and need to read the small print. If you don't understand it DON'T INVEST 

[HighlandTiger]

have you heard of Saving Stream?

[ArthGoch]

Yes - Their model is very similar to Wellesley. If I remember correctly the debut is likewise secured against the asset - commercial buildings.

 

If memory serves the LTV was much higher for Saving Stream when I checked between the two, and similarly the credit rating was not as good. Hence the reason that they can offer higher yields. 

 

If you diversify across platforms and assets you are negating risk. It is when you go for all eggs in one basket that you will become a cropper 

[HighlandTiger]

yeah my aim to to probably spread some money over about 4 different companies. Like you say it doesn't make sense to keep all your eggs in one basket

[Paul]

probably in terms of best researched and ease of reading when starting out is the usual port of call MSE

 

http://www.moneysavingexpert.com/savings/peer-to-peer-lending

 

I remember seeing plenty of forum discussions on martin lewis forum MSE if you search the terms/firm your interested in, a few folk have jumped aboard but with rates of less than 5% it not exactly pulse racing exciting.

 

Anyone who cant make 5% interest through their own skills & personal knowledge on your own money your lacking in drive and ambition

 

Research some higher risk stocks or new tech stocks 

 

Flip a couple of auction cars per year. buy a convertible in winter and re-auction in summer 

 

Buy a VW camper van in winter and sell the month before the big pop festivals start and market it as such. Enjoy a few FREE breaks away during the year 

 

research and buy a few high end mountain bikes from local gumtree and sell nationally on eBay with all singing all dancing add, I have flipped so many cannondale/trek/specalised bikes, since i was 16 than i care to remember  buying for £500-£1500 locally and making 0% - 40% return on my cash whilst also having the enjoy of a few months with my new bike 

 

Even to the case of cutting your day to day expenses, a few hens in back garden and FREE eggs, buying a wholesale butchered animal for your meat for the year, growing your own veg or growing your own herb garden, each £1 or £2 saved at the supermarket is better 

 

ALL of these written on the back of a fag packet ideas will net & annually more than any savings account or peer to peer lending or curtailing your week to week spending, thus saving. 

 

Follow whatever is your area of expertise is

[HighlandTiger]

probably in terms of best researched and ease of reading when starting out is the usual port of call MSE

 

http://www.moneysavingexpert.com/savings/peer-to-peer-lending

 

It was actually this article which brought these sort of "investments" to my attention

[Fathersuperior]

Here in the States our main p2p is Lending Club you have to have a median income of 70k, which is completely absurd because I have xx,xxx in savings and no one should dictate how I invest my own capital.

But if you do have the funds to get into p2p. Lenders are averaging at 10% (safe investments) in returns. Also, your quite insulated from risk.

Note: That I'm only speaking about Lending Club and from the information I've gathered. So take it with a grain of salt.

[Guest]

I use funding circle in the UK and I believe they are in the USA too. My investment is split over 200 companies with only a few pounds per company. I estimate that before bad debts my loans will give 9.2% gross.

[SoulUK]

I've personally used Zopa for the last three years, only put in a small amount each month, Have had zero bad debt from it so far with an average return at about 4.9%

 

Zopa, I believe has a bad debt fund, which means part of the fees taken from the lenders is used to plug any bad debt (but I don't have experience of this)

 

They spread your money out over £10 micro loans, which means your never heavily invested into one persons loan