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CapitalRise Review

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By on 29 April, 2019 | Read more by this author

Here's the CapitalRise review from one of 4thWay's experts:

4thWay's Quick Expert CapitalRise Review

Will be surprised if this one isn't a good'un

When did CapitalRise start?

CapitalRise* has completed over £40 million since launch in 2016.

What interesting or unique points does CapitalRise have?

CapitalRise's focus is prime central London development properties, which is a nice niche for lenders to consider putting some lending in.

How good are its loans?

There have been no bad debts as yet. Although days are still young, CapitalRise forecasts no losses to lenders due to its strict criteria and, while this remains to be seen, I find that forecast plausible for the typical lender, if not every lender all the time.

How much experience do CapitalRise's key people have?

The key decision-maker has both a long history heading over 100 developments with a high rate of return, as well as a seemingly keen interest and experience in the mathematical and analytical side of lending and risk management, which is a rare combination for these types of loans.

The rest of the impressive team appears to have a huge amount of relevant experience and training, which is far from a given in specialist property P2P lending.

CapitalRise review: lending processes

The checks that borrowers and developments have to go through before CapitalRise will approve a loan are impressive and as expected for a team of this calibre and for these kinds of loans. Only a small proportion of borrowers are allowed to lend through CapitalRise.

How good are CapitalRise's interest rates, bad debts and margin of safety?

Lenders can lend in senior loans – meaning you get your money back first in the event a loan goes bad. But more often you will lend in junior loans – meaning other banks will get repaid first.

Lenders should however remember that CapitalRise's junior loans are not low-risk loans and CapitalRise's history is short, which indicates that lenders should lend a small proportion of their lending pot in each loan.

Across all its loans, I believe interest rates of around 9.8% are likely to be very satisfactory for the risks involved.

Has CapitalRise provided enough information to assess the risks?

It has been transparent with 4thWay, providing reassuringly full information on almost all aspects of its business.

Is CapitalRise profitable?

CapitalRise's*  most recently filed company accounts show it is not yet profitable. That said, I see no reason to be concerned at this stage. I expect it will be some years before CapitalRise turns a profit, which is normal for a P2P startup.

What is CapitalRise's minimum lending amount and how many loans can I lend in?

At present, there are not many opportunities to lend, so don't forget to spread your money across many other P2P lending sites as usual. The minimum lending amount is high at £1,000.

Does CapitalRise have an IFISA?

CapitalRise's loans are available in IFISAs.

Other info

CapitalRise offers a non-lending product – an equity product – whereby you an share in the profits of selling developments rather like you are one of the development's owners. 4thWay does not assess equity investments, which are higher risk than lending.

Visit CapitalRise*.

Independent opinion: the opinions expressed are those of the author and not held by 4thWay. 4thWay is not regulated by the ESMA or the FCA, and does not provide personalised advice. The material is for general information and education purposes only and not intended to incite you to lend.

All the experts and journalists who conduct research and write articles for 4thWay are subject to 4thWay's Editorial Code of Practice. For more, please see 4thWay's terms and conditions.

*Commission and impartial research: our service is free to you. We already show dozens of P2P lending companies in our accurate comparison tables and we keep adding more as soon as they provide us with enough details. We receive compensation from CapitalRise and other P2P lending companies not mentioned above when you click through from our website and open accounts with them. We vigorously ensure that this doesn't affect our editorial independence. Read How we earn money fairly with your help.

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Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

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Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Orchard’s interest rates different?

Orchard’s lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Orchard’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×
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