P2P Lending Strategy

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7 Reasons To Put Half Your Savings In P2P Lending

In a recent article, one of his first for 4thWay, freelance investment journalist Cliff D’Arcy suggested the maximum amount that any of us should lend through P2P is 5% or at most 10% of our wealth. Susan, a 4thWay reader, told me on the phone that this frightened her. I’m not surprised. It shocks me… Read more

RateSetter Lending Strategy

Here is the RateSetter lending strategy. RateSetter is one of the simplest and easiest P2P lending offerings available. Lend using the market rate Most of us using RateSetter lend and re-lend our loan repayments automatically using the “market rate”, which is the average rate achieved the previous day. Currently you can expect to lend your money within a day,… Read more

Funding Circle Expansion Loans Are Lower Risk

When you look deep into the detail of Funding Circle’s* loans, you get some interesting patterns. Today, I compared the two biggest types of loans: “expansion/growth capital” versus “working capital” loans to see how they compare on both bad debts and interest rates. Is one riskier than the other and is the interest rate higher to… Read more

Simple Way To Improve Loan Selection & Lower Risk

Until more P2P lending websites have a longer record, searching for patterns to improve loan selection is not possible at most of them. But there’s one way to select loans that I think will work everywhere. Keen investors like to scour through past loans to try and find patterns that help them select lower-risk loans…. Read more

How To Use The Bad-Debt Rate

Lenders can use the bad-debt rate to see how low bad debts have been in the past on a P2P lending webste. An average annual bad-debt rate of 0.5% during a moderate or good economic backdrop is very low, for example. Any bank would be chuffed to have such a rate. If bad debts based… Read more

Are Bad Debt Forecasts Misleading?

Forecasts might not be the best way to decide whether to lend through a particular P2P lending website, but there are plenty of other ways to do so. UK Bond Network, a P2P lending website, recently sent 4thWay® enough data to get listed in its comparison tables. In doing so, it didn’t provide any forecasts of… Read more

Should I Borrow to Lend?

I remember working at stock-market investment website The Motley Fool when Stuart Watson was the editor. He was a smart guy. That’s why, when I told him a friend was re-mortgaging his house to invest in the stock market, he had a very intelligent response, albeit not with his usual coherence. It reminded me on… Read more

Lending Works Lending Strategy

Lending Works lending strategy is short and simple, because this P2P lending website is simple and easy to use. You have limited strategy options available, but it still requires a little bit of maintenance. Lending Works Lending Strategy: take it or leave it! Many P2P lending websites give active lenders with time on their hands the opportunity… Read more

P2P Lending is Not Like Picking Shares

Back on Wednesday, 30th July 2014, there was an interesting interview on Money Box on BBC Radio 4. But I only just listened to it this morning. At roughly 13 minutes in, the conversation turns to one man’s experiences with peer-to-peer lending. That man is John Spiers, He is a founder of Bestinvest, which does investment… Read more

Funding Circle Lending Strategy

This is the second article in 4thWay’s Lending Strategy series that focuses on strategy for a single P2P lending company, and I’ve decided to go with another big one: Funding Circle. As you will see reading the various strategies and techniques below, you can get up to 12.5% after fees and bad debts at very low… Read more

Today’s average interest rates

4thWay® Forecast Returns Index: 4.68%

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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