4thWay's Quick Expert RateSetter Review
Professional business with a good record
Established in 2010 and with lending measured in billions, this agile P2P lending company has the longest record of zero losses to lenders, thanks to great borrower selection processes, very experienced people from the banking industry and a reserve fund set aside to cover expected losses.
RateSetter* is exceedingly transparent, so that we can assess its results in great detail using risk modelling and investing techniques. It is easy to spread your money across lots of loans.
When it is not investing to expand, RateSetter is already a profitable business – still a rarity in this new and growing industry. This background profitability might, however, be taking a hit due to a very large loan that has gone bad, but we still fancy RateSetter's prospects as a business.
Interest rates have sunk recently and bad debts have risen, eroding the large margin of safety we like to see. Lenders should consider re-lending repayments and interest received in order to lower their risks.
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