Which P2P Lending Sites Are Profitable?
This page was last updated on 30 April, 2022
For many years, 4thWay has had a small, steady stream of requests from our readers to find out which P2P lending companies are profitable – which of them are making money. That's why we have this guide, which we update kind of regularly.
Lenders' concern is that if these websites are not profitable then they will go bust. Or, rather, the concern is that if they go bust it will take much longer to get your money back or that you might even get less money back.
After all, P2P lending websites not only find the borrowers for us individual lenders, they also collect loan repayments and chase bad debts.
Certainly, in the event one of these companies goes out of business, there's a substantial risk that you'll face delays in getting all your money back.
Luckily, history has shown so far that most people lending through P2P sites don't suffer additional losses as a result of the closure. (Although, as usual, you can suffer losses from bad debts – just like if the P2P site was profitable.)
You can read more about the scale of this risk, and how to greatly reduce it, in The 10 Key Peer-To-Peer Lending Risks Risks.
How much are the P2P lending sites making?
It's now 2022 and we're finding that a steady trickle of P2P lending companies have been becoming profitable as they get out of the startup phase. With profitability and greater revenue, they have been providing more information in their public accounts and more of their accounts are being independently audited.
Even so, many P2P lending companies are still very much in their startup phases and have yet to make a profit. For most of these, profitability figures are hard to come by, because they remain too small. Smaller companies don't have to file much information at the public registrar of companies.
What we know about their profits
Below is a list of different P2P lending companies with the latest information we have on their profitability.
Bear in mind that this information is largely taken from company reports, some of which haven't been externally audited by independent accountants. In other cases, the information comes from spokespeople at the companies. That increases the chances that there are some inaccuracies and sometimes even whoppers. (And even independently audited accounts are not immune to error and deception.)
If you choose to read filed P2P lending company accounts for yourself, you'll need to take a fair bit of time to understand some of the idiosyncracies of accounting in this space. For example, you'll need to learn to interpret the figures and even to correct them in the sense of making them more meaningful to you as an investor in their loans. And you'll have to work out how companies within a group or related to the group fit together in the overall picture. We try to make it easy for you by summarising the real situation as we see it below.
ArchOver | not profitable
ArchOver* lost half-a-million pounds in the calendar year 2020, down from a £1.5 million loss in 2019. The auditors have been CBW Audit Limited for at least the past few years.
ArchOver has a substantial and profitable parent, Hampden Holdings, which has provided plenty of financial support to ArchOver in its initial years.
Assetz Capital | profitable
Assetz Capital* made a profit of about £2 million to March 2021. This is the group's first profit, so it's a big improvement on losses of around £1 million prior to that.
Despite the large profits that year, it's not clear whether Assetz Capital has already reached consistent profitability.
Revenue has fallen between the narrow range of £14 million and £16 million over the past three years.
Assetz's auditors for the past few years have been Kay Johnson Gee Limited, which is unknown to us. It's based in Manchester where Assetz is also headquartered.
BLEND Network | not profitable?
BLEND Network isn't yet required to file complete company accounts. Its abridged accounts indicate it made a five-figure loss in 2019 and a six-figure loss 2020, but this is a very small, new P2P lending site. I expect its losses to grow for several years as it scales up its business. Its owner appears to have injected enough money into the business to work on the growth it needs.
CapitalRise | not profitable?
Little information is available in CapitalRise‘s unaudited, published accounts. It looks like it might have made losses of around £1.5 million in both 2019 and 2020. This is not unusual at this stage in a P2P lending company's life. Its owners appear to put their money where their mouths are and they appear to be successfully growing the business at a rapid rate.
CapitalRise appears to have plenty of cash to keep it going while it grows into profitability.
CapitalStackers | profitable
CapitalStackers* has been profitable since around 2017, and slowly and steadily growing profits since then. It probably made more than £300,000 in 2021, according to unaudited information.
Crowd2Fund | not profitable
Crowd2Fund* hasn't made a profit yet. It's made losses of around£800,000 to £1 million in each of the past three years to April 2021.
Revenue was around £750,000 up to April 2019, £530,000 up to April 2020 and just £90,000 by April 2021 after the worst pandemic year. Its latest accounts state that it believes it has the resources to keep going for at least 12 months from the date of approval of the accounts, which was in April 2022.
Crowd2Fund's CEO has owed Crowd2Fund over £100,000 for at least five years.
Crowd2Fund's past two company accounts have been independently audited. Its auditor is Shipleys LLC.
CrowdProperty | not profitable
CrowdProperty was profitable from October 2019 and remained so to its latest published but unaudited accounts, with an end date of March 2021. Annual profits reached £600,000. Since then, it's chosen to again operate at a loss, so that it can spend more to grow more.
Downing Crowd | profitable
Downing Crowd is a unit of a larger business, Downing LLP. We can't see the results of the Downing Crowd unit, but the overall business is nicely profitable, making at least seven-figure profits over the past six years. It's been profitable for at least the past 13 years.
Revenue rose sharply to £37 million in 2020 from £25 million in the prior year.
easyMoney | profitable
easyMoney‘s accounts, audited by Warrener Stewart (which is unknown to us), made its first profit of about £200,000 in 2020, after a loss of about £1 million the year before. We have no way to know if it's now already stably profitable and suggest you assume it isn't.
Folk2Folk | profitable
Folk2Folk has been profitable for three years up to 2021, with profits rising from £200,000 in both 2019 and 2020 up to £1 million in the 12 months to January 2021. Revenue has been stable at above £3 million for the past couple of years.
Auditors are Saffery Champness LLP.
We are told that profits have risen substantially again in the 12 months to January 2022 and we await Folk2Folk's published accounts for details.
HNW Lending | profitable
HNW Lending* claimed in 2019 that it had been profitable every year. Its unaudited, published accounts up to 2021 indicate this to be the case, although there isn't enough detail to know.
Invest & Fund | not profitable
Invest & Fund* lost £1.1 million in 2021, up from a loss of £300,000 the year earlier. Revenue fell from £750,000 to £450,000.
Invest & Fund's accounts are audited by Crowe U.K. LLP.
Kuflink | profitable
The Kuflink group of companies made its first profit of around £400,000 in 2021, according to its accounts, on revenue of more than £3 million. Independent auditors are MHA MacIntyre Hudson.
This is its first profit, up from a loss of £129,000 the year before and from around £3 million in losses in each of the two years before that.
It claims to now be stably profitable.
Kuflink's other bridging-loan business, its older brother so to speak, has mostly been profitable and growing since 2011.
LandlordInvest | profitable
LandlordInvest‘s unaudited accounts don't provide sufficient information, since they are the abridged versions, but it told 4thWay in April 2022 that it was profitable in 2020 and 2021.
Loanpad | profitable
Loanpad* tells us it reached profitability on a monthly basis in June 2021 and it states that it will remain profitable from now on. Its published accounts can't confirm this, as they're abridged accounts for smaller companies.
MarketFinance | not profitable
MarketFinance turned profitable in the 2020 calendar year, according to P2P Finance News. However, the audited and published accounts for the group show a loss of £9 million for 2020, which is similar to the £10 million lost in 2019.
Revenue in 2020 was £10 million and in 2019 it was £6 million.
Proplend | not profitable
Proplend* is not yet profitable. Its unaudited accounts appear to indicate small losses still, although there isn't enough details yet, as it is not required to publish full accounts.
SoMo | profitable
SoMo is profitable. It filed audited accounts for 2021 show a profit of nearly £5 million, up from just under £4 million the prior year. It's been profitable for many years and profits appear to have risen for several years in a row. SoMo says that it's made a profit ever since 2015, when it was called BridgeCrowd.
Other ways to measure P2P lending site stability
At this stage, profits aren't key for many of these fast growing startups, so you need to look at other ways to measure stability and strength. To that end, read Who Owns The P2P Lending Sites?
*Commission 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 Assetz Capital, CapitalStackers, Crowd2Fund, HNW Lending, Invest & Fund, Kuflink, Loanpad and Proplend, 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.