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secondary markets

A secondary market is where you can buy and sell existing investments. The stock market is the most famous example of a secondary market. Most P2P lending websites and IFISA providers operate their own secondary markets, where you can sell your loans before the borrower repays in full. You’ll only be able to sell early… Read more

liquidity

Liquidity means how easy it is to get your cash back when lending through P2P (or when investing in anything else too). Most P2P lending websites allow you to sell your loans before borrowers repay them. Most of the time, you can sell immediately or very quickly. However, this will not always be the case…. Read more

credit risk

Credit risk is the risk that a borrower is unable to repay the full amount owed and attempts to collect the bad debt fail. This is the most common risk in P2P lending.

financial conduct authority

The Financial Conduct Authority (FCA) is the UK’s financial regulator. Its job is to protect those who buy financial services, such as P2P lending and IFISAs. It has the power to sets rules for financial businesses and punish them for non-compliance. It has no authority over investors, including people who lend through P2P.

fintech

Fintech stands for financial technology. The fintech industry is businesses that are using computer programs to advance banking, investing and other areas of the financial industry. The work of a fintech business can include topical themes, such as artificial intelligence, blockchain or biometrics.

smes

SME is shorthand for small- to medium-sized enterprises (companies). The vast majority of companies fit in this category. Some peer-to-peer lending platforms enable lending to such businesses. At present, there are no P2P lending companies that focus on lending to large companies, which typically borrow by issuing their own bonds (loans) directly.

retail investors

Retail investor is a phrase used in the financial industry in the UK (and in many other countries) to officially describe ordinary investors. (Or ordinary lenders in the case of P2P.) Many people who lend through P2P are in this category of investor. Retail investors are mostly expected to invest (or lend) in simpler types… Read more

invoice finance

Invoice finance is when you lend to business borrowers who put up amounts owed by customers as collateral. In some cases, the borrowers’ customers can be asked to pay their invoices directly to the lenders or at least to the P2P lending/IFISA platform in the middle. Read more.

4thway plus rating

The 4thWay PLUS Ratings are based on interest rates and a forecast of the risk of borrowers not repaying their entire debts. There are other risks. A top, 3/3 “Exceptional” 4thWay PLUS Rating means that, using a strict version of the international banking standard “Basel” method, we expect the average investor won’t make a loss across… Read more

the administrators

Administrators (otherwise known as receivers) are people appointed to wind down a peer-to-peer lending platform or IFISA provider, when it has failed or gone bust. Administrators are expected to attempt to return as much money to lenders as possible by taking over the management of the existing loans until they are all repaid. Read more.

Today’s average interest rates

What is the “4thWay”?

There's the savings way, the property way, the stock-market way, and now there's the peer-to-peer lending way. The 4thWay® to save and invest.
Learn more.

What does 4thWay do?

We help people save and make more money, more safely when they cut out the banks and lend directly to other people and to businesses.

Why use 4thWay?

4thWay® is shaped by investors, bank risk modellers and a senior debt specialist, and we're governed by our users to ensure our comparison services and research are trustworthy and complete.

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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