Funding Circle has shown itself to be extremely adept at learning, so that it can improve borrower selection, lower bad debts and increase recoveries when loans go bad. Everything else being equal, this translates into higher returns. It also is likely to mean that bad…
Some P2P lending companies, like many businesses do, have been borrowing money. They might have borrowed as part of their start-up costs and they have certainly been borrowing for expansion. When a P2P lending company borrows money, it takes on risk. If its growth plans fail,…
Note that, since this article was published, Wellesley & Co. has greatly clarified its marketing and re-named the bond the Wellesley Listed Bond. Wellesley & Co. has been offering one of the safer P2P lending opportunities for individuals like you and me. However, its new…
At least one P2P lending company continues to make some unsupportable claims. The financial regulator recently reported that it’s had to ask P2P lending companies to stop bigging up the benefits while talking down the risks. Jane thinks the regulator gave the industry a B-. (Read Financial Regulator Gives…
Yesterday I wrote about why I stick to low-risk P2P lending. Today, I want to write about why I look to shares for my higher rewards. To me, there’s no competition when choosing between higher-risk P2P lending and the stock market. Regarding high-risk P2P lending,…
At 4thWay® we write all our views, both positive and negative, about P2P lending. We don’t shirk on our responsibility to tell it like it is. With this in mind today I’d like to tell you about why I stick to low-risk P2P lending instead…
Landbay has today revealed a few of its key statistics that help us to better understand the low-risk, BTL property P2P lending company. We can now see the average size of the BTL mortgages we’re lending in through Landbay, rental coverage and now, at last,…
Like you I am in the position to put a small sum of money aside for that rainy day to spend on my family. There is no more room under our bed, as that space was filled up many years ago with paraphernalia. We bought…
Between us at 4thWay® today we could come up with just one oxymoron that was half as good as “recklessly conservative”. I’ll tell it to you later, because first I want to write about the first. This expression was used in a preliminary paper by The Open…
Here are the latest high-rate loans that are open for you to bid on from rebuildingsociety, the P2P lending company that finances riskier loans to businesses. C grade loan to spa centre This spa, beauty and health centre wants to borrow £25,000 for five years. The loan is…
Hargreaves Lansdown, a stockbroker as well as the UK’s largest investment fund “supermarket”, has added even more credibility to the P2P movement by confirming it will offer the service to its 675,000 customers. (A fund supermarket is a service that gives you access to lots…
What happens when, not if, a provision fund is overwhelmed by bad debts? What makes these reserve funds so solid? Before we look at how some of the bad-debt provision funds will eventually be breached, let’s look at why they’re such tough nuts to crack. Because that just…
The Financial Conduct Authority published its first report since it took over regulation of P2P lending. It visited five of the larger P2P lending websites to “assess the governance, management and controls of five market participants to understand the risk that the sector poses to our statutory objectives.”…
I really don’t like to bad-mouth competition because it makes us seem petty, but this is the Candid Opinion blog, and this latest information we have received from The Big Deal is eye-opening to 4thWay® readers. Before I criticise, them, I am absolutely convinced that…
Saving Stream is a secured loans P2P lending company that has been paying around 12% to lenders, with no losses to its 2,000 lenders. Now, in addition, it has launched the Saving Stream Provision Fund. Saving Stream Provision Fund Not only does Saving Stream lend…
All of us at 4thWay® missed a very important detail about Lending Works‘ new interest rates last week. We’re not sure if we all need stronger lens prescriptions or if the consumer loans P2P lending company hadn’t explained its “Lending Works Rate Lock” properly to begin…
Those of you who like to take a bit more risk might try P2P lending company Mintos. Key risks It’s riskier because it’s new, having started in September 2014. It’s also riskier because, well, it’s based in Latvia, so I don’t know much about how…
I put it to the wise community at P2P Independent Forum whether personal guarantees count as secured lending. Before I share their views, here are two unavoidable definitions: Personal guarantee Business borrowers sometimes give their “personal guarantees” that they will repay a business loan using the owners’ and directors’…
For most peer-to-peer lending companies, a late payment is not newsworthy. But it’s different for Wellesley & Co. (4thWay® Risk Rating 12/50, putting it just slightly above savings accounts on the risk scale.) This peer-to-peer lending company has been around since late 2013. Wellesley & Co….
The big news for lenders today is the big jump in interest rates that I noticed this morning. In other significant news, Funding Circle is also celebrating £500 million of loans matched between borrowers and lenders like you – including me. Let’s start with the rate…
