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Now’s The Time: Instant Diversification Available Now In Some Of The Safest Lending
I just have time for two brief updates on Proplend, which is truly one of the most remarkable P2P lending and IFISA providers for lowering your risks while paying attractive interest rates.
Instant diversification in extremely safe loans available now
At time of writing, Proplend* has 19 loans that you can take part in instantly, with an average lender rate of 6.3%.
All those loans are Proplend's “tranche A”, meaning the amount the borrower is borrowing is just half the size of the property valuations. That's a lot of protection against lender losses.
On top of that, virtually all of these current loans are where the borrowers are earning rent on the properties you're lending against. That rent more than covers the monthly payments to you.
Proplend has paid out around £20 million in interest to lenders since 2014 with just £40,000 in total write-offs on one of its optional, somewhat riskier loans (non-tranche A).
If you move fast, you might be able to spread your money into many of these loans right from the start. If not, you can drip your money in over several weeks or months, if necessary. However, make sure you only put money in after you have completed a lot of research into Proplend.
First results in lending to the government
For the past 16 months, Proplend has also been offering VAT loans, which is when borrowers get a loan based on VAT that the taxman is due to pay back to them.
In a way, this is a bit like lending to the government.
The results have started to come in on these loans, as Proplend has steadily been testing the market.
Six out of six VAT loans have repaid in full, with the last one just repaying in March. The total lent was over £4 million.
The loans, so far, have been about 1/5th the size of the VAT due to be paid back, so, again, the downside protection is very large.
These loans pay an attractive 9% interest rate. The downside is that these are short-term loans of just three months, so expect them more to just fill in the gaps when you're lending and re-lending.
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*Commission, fees and impartial research: our service is free to you. 4thWay shows dozens of P2P lending accounts in our accurate comparison tables and we add new ones as they make it through our listing process. We receive compensation from Proplend and other P2P lending companies not mentioned above either when you click through from our website and open accounts with them, or to cover the costs of conducting our calculated stress tests and ratings assessments. We vigorously ensure that this doesn't affect our editorial independence. Read How we earn money fairly with your help.