We talk to 4thWay users a lot directly, and we see your comments in articles, in our surveys and now even in our new discussion boards. What we find is that lenders are making the same mistakes over and over again – and frankly it is worrying 4thWay’s experts. While the P2P lending sites really… Read more
P2P Lending Strategy
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3 Huge P2P Lending Mistakes You’re Making Now
How 4thWay’s CEO Selects P2P Lending Sites
I have always invested in investments that are relatively easy to analyse, so that I have a good chance of being able to weigh up the risk-reward balance properly, and invest with a large margin of safety. The types of investments I choose also need to come with total costs that are low enough to… Read more
5 Reasons Why Lending to Residential Landlords Is The Lowest Risk
Lending to residential buy-to-let landlords is intrinsically the safest kind of lending available to lenders through P2P. I’ll give you the five reasons for this in no particular order, since it’s all good: The bricks-and-mortar are already there Firstly, since the properties already exist and are not merely building sites with promise (like lending to… Read more
How Lenders Can Pick The Best Loans at HNW Lending
HNW Lending offers many loans with exceptionally high-quality security to protect you against losses. This means that the borrower owns properties or possessions that are easy to value and that are worth much more than the loan amount. For a good proportion of these loans, lenders are also first in line if the borrower has… Read more
ArchOver’s New Auto-Lend: The Right Kind Of Diversification
ArchOver* is now the latest established P2P lending site to introduce auto-lend combined with auto-diversification. The ArchOver Investment Plan, as it is called, does three very useful things, the third is about the type of diversification on offer, which is a feature that deserves expanding on. Firstly, most obviously, ArchOver’s auto-lending saves time for lenders who… Read more
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