I fielded a call from a lender who wondered, only very mildly worried, about Funding Circle’s changes to its property loans, which it announced a short time ago. There are two changes. Some property loans to get a worse grade Funding Circle is going to…
Neil Faulkner says that with low interest rates for lenders, less impressive loan book performance than similar competitors, increased risks from borrowing to lend and not enough of the right kinds of unambiguous information and data, he sets out his opinion that, if he was lending…
May people say that P2P lending websites hve lost their way; they’re not P2P any more. And when I say “many people say”, unlike Donald Trump, I don’t mean me. I mean a lot of financial journalists and individual lenders are saying it. I’ve heard them…
When you look deep into the detail of Funding Circle’s* loans, you get some interesting patterns. Today, I compared the two biggest types of loans: “expansion/growth capital” versus “working capital” loans to see how they compare on both bad debts and interest rates. Is one riskier…
Having lived in Germany for seven years, I’d like to make a small comparison before getting to the point. While Germans are all individuals like the rest of us, their culture has developed a few very different ways of looking at things. As far as I’m concerned,…
If you lend to Funding Circle* A+ business borrowers you can currently earn more than at RateSetter, Lending Works* and Zopa, but with a better recent record of repayment than RateSetter and Zopa. Yet Funding Circle doesn’t have a bad-debt provision fund and the others…
Eddyyy intends to start up as a peer-to-peer lending company offering personal loans. We have little information about it and so we don’t know if it will get off the ground, so I shan’t be reviewing it today. But what we do know is its…
See the hidden costs in peer-to-peer lending on four peer-to-peer lending websites covering five different types of loans. Also read how the overall P2P lending costs compare to other investments. While many peer-to-peer lending websites (aka marketplace lenders) claim to have no lending fee, and others…
The more risky an investment is, the longer you need to have in mind to invest. And you need to keep investing regularly throughout that period to really get your risks down to a sensible level for the rewards involved. Most lenders like you and…
P2P lending website ArchOver*, which does secured and insured business loans, has just launched its secondary market, so that you can now buy and sell existing loans. However, it is highly unusual and so it requires explaining. Two key facts Before I waste your time,…
A leak to the Financial Times has revealed that Funding Circle* is planning to be the first P2P lending website to create its own investment fund – and it’s got some very interesting features, so pay attention. It’s called the Funding Circle SME Income Fund. Here’s what…
If you’re asking yourself: “Are interest rates high enough on these development loans?” “Are bad debts low enough on these personal loans?” “Is pawnbroking P2P lending too high a risk?” “Is the loan to value low enough on these buy-to-let mortgages?” “Do these guys really have…
On the one hand we have buy-to-let P2P lending website Landbay* showing that buy-to-let returns have beaten all other assets over the 18 years to the end of 2014. On the other, we have a This Is Money article calling buy-to-let a “£200 billion time bomb”….
I wrote about my interview with CapitalStackers‘* Steve Robson in CapitalStackers: High Property Returns With Lower Risk. Today I’d like to explain about the potential to make a profit here by buying and then selling loan parts to other lenders, rather than just buying loan…
Hedge funds, banks and other institutions are increasingly lending their money or, more commonly, their clients’ money, through P2P lending websites. Do institutions have an advantage over us individual lenders? Here’s my take: Institutions versus the crowd Plus for the crowd: we have more choice…
This is adapted from a blog we wrote for Zopa’s website. Lending through personal loans platforms such as Zopa is part of the staple diet for both individual lenders and professionals alike. The attraction is the low-risk profile, reliable and predictable nature of personal loans….
Bad debts on the 23,000 loans issued by Zopa in 2015 so far are virtually zero, despite more riskier borrowers. In my article Zopa Risks & Lending Speed Rise, Rates Stable, I reported that Zopa is accepting more loan applications than it used to, so that it can…
Hi 4thWay® News and Tips subscribers! My book, “4thWay’s Intelligent Peer-to-Peer Lending Strategies”, covers strategies to make much more money, much more safely, and it drills down to show individual strategy by each individual P2P lending website. For you, it’s free! All I ask for in…
MarketInvoice is a P2P lending service that allows lenders to lend to medium- and large-sized businesses. These business borrowers put up specific invoices as collateral, and they repay lenders within a matter of weeks or months when the business receives payment of its invoices from its customers. Lenders earn…
Over half of the P2P lending platforms allow you to lend in property loans. (Read 18 Property Peer-to-Peer Lending Websites.) So you might be concerned to have read the headlines this week that house price rises have halved from over 11% a year ago to…
