Flender Review

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By on 30 November, 2017 | Read more by this author

Flender* is a new peer-to-peer lending website that has recently provided us enough information to be listed in 4thWay's peer-to-peer lending comparison service. This takes place after our experts' usual exhaustive questioning and data gathering.

One of them has written a brief summary of their key findings and an own opinion in this Flender Review:

4thWay's Quick Expert Flender Review

Lots of time needed to prove itself

Established in 2017, lenders using Flender have lent less than a million euros to Irish borrowers, who can be individuals or businesses. The loans are in euros, so UK-based lenders who normally use pounds face currency risk if the pound falls in value.

Flender uniquely requires that borrowers first borrow at least 25% from their “own crowd”, meaning friends, family and other contacts, before other lenders can take part. The own crowd might charge low interest or no interest, making it easier for the borrowers to afford the overall loan.

Flender has a lot to prove and not just because it’s brand new. Details are still very sketchy on its team, so we are unclear if they have the specific banking skills and experience we would expect to see for these kinds of loans.

In addition, Flender approves approximately one-third of loan applicants, which is very high for unsecured loans outside of payday loans, and high for a brand new P2P lending site, which should be able to be more selective of borrowers rather than less.

One-sixth of all applicants go on to raise enough money from their friends and family, so that they are allowed to get the rest from ordinary lenders on the Flender website.

It will take some years to see whether having an “own crowd” reduces the risks for all lenders, as Flender expects it to, and I'll be watching with interest to see how it does.

No loans have gone bad and lenders have lost no money, but it is very early days. We won’t know if the interest rates for lenders – typically 10% – will turn out to be sufficient for the risks involved.

Flender* is partially transparent with us, but we would like access to their data and evidence of their relevant banking training and experience.

Flender’s latest accounts show it is not yet profitable and at this early stage in its life we should expect to wait some years before that happens. Flender has no known major backers.

Unless you are a preferred lender (lending at least €100,000) you choose individual loans for yourself. Preferred lenders have their money automatically lent out. You will need to spread your money across other P2P lending sites to lower your risks and to ensure you are lending in enough loans.

Visit Flender*.

Read more Quick Expert Reviews in our comparison tables.

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

Journalists, bloggers and specialists writing 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 Flender 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.

2 responses to “Flender Review”

  1. SteveH says:

    The only loan on offer has just estimates instead of accounts. Like this
    Operating Costs:
    Staff 100,000
    Other 100,000

    How on earth this could have got through any sort of evaluation defeats me

    And how do they police the friends investments , or do they?

    • Neil Faulkner says:

      Thanks for your useful comment.

      Regarding policing friends’ investments, the friends have to lend through the Flender platform too. They are given private access before it is made public.

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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

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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

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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.

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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.

Got it

×
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