At 4thWay, we’re fascinated by the unusual nature of Rebuildingsociety’s loan book. No high-street bank dataset we’ve ever seen comes close to this kind of profile and nor do any other P2P lending companies. The loan book defies belief. Borrower grading has historically sucked. Bad…
This article covers: What is unsecured small business lending? When do small business loan bad debts occur? How and when do these loans make a profit? What do individual lenders need to do to reach a profit? How much does platform ability, borrower quality and…
LendingCrowd’s Growth Account is unrated, due to lack of information. These loans have been paying lenders interest after bad debts. Visit LendingCrowd* or keep reading the LendingCrowd Review.
I’m not new to reading long-winded court judgments, so I want to write about some interesting points for lenders that came up in this 83-page High Court judgment on Lendy this month. My thoughts are not specifically for people who lent through Lendy, the disgraced…
The Assetz Capital login page is one of the key focal points for security risks on its website. We have assessed this page – as well as the entire website – for its cybersecurity. Most websites now earn the “secure” symbol next to the website…
LendingCrowd* has taken the rare step of deciding to no longer publish its loan book or provide 4thWay with it on a regular basis. As a result of this large step back in transparency, LendingCrowd has lost all its 4thWay PLUS Ratings on all its…
Each type of lending has its own particular unique sides and risks. One aspect of bridging lending is when a P2P lending company sets up a loan and then allows the borrower to repay that loan at the end by taking out another loan. Most…
Has P2P lending outperformed long-run returns from the stock market, and with more stability? Where to look for information on shares I’d like to start by crediting the research on shares – and bonds – by Credit Suisse and the London Business School. If you…
RateSetter (which recently closed its P2P business with all lenders in profit after being sold to Metro Bank) and Lending Works* both had to adjust lending interest rates during the pandemic to cover the additional losses from the recession. Their reserve funds alone didn’t cover…
Assetz Capital was one of the businesses that temporarily paused P2P lending last year in order to offer businesses government-backed pandemic loans, which weren’t available as P2P. It’s now reopening its P2P lending, but it could be some weeks before lenders can put new money…
One of the key things to understand when putting your money into a lending account is the competence and character of the people behind the P2P lending company in question. While I can’t distill all 4thWay’s acquired knowledge and method for scrutinising key people, I’m…
Lending Works has said to us that lenders have expressed support of it during the pandemic. And we have corroborating evidence that it’s probably a minority of lenders who are truly angry. Yet there’s certainly some anger going around. While it has so far justified its…
P2P lending often pays better than bonds and there are several reasons for this: Illiquidity – you might not be able to sell up early Most people invest in bonds through bond funds, where they can sell their holdings in those fund right away, even…
[orangebox] Lending Works* states that no lender has lost money while some Lending Works lenders have written to us saying that they have. What’s really going on? This article has two parts: Firstly, to talk about whether any lenders have suffered an overall loss at…
4thWay’s specialists have reassessed Lending Works’ ratings. This mostly involves reassessing the performance of their loans and stress testing them with horrible disaster scenarios, such as assuming a severe recession and property crash. In these circumstances, can lenders still end with an overall profit? The…
See the latest update on the subject below in Update On Kuflink’s Financial Results And Auditor Reports. Let’s catch up on 3/3 4thWay PLUS-Rated P2P lending company Kuflink* – which has had a stern ticking off from its former auditors, Ernst & Young, who resigned….
Below is the latest Lending Works review given by one of 4thWay’s specialists. On 14th December, 2021, Lending Works changed its business model, so that lending is now only done by financial institutions. Inidividual lenders will see their existing loans steadily repaid. I currently have…
Loanpad now rated Loanpad* (read review) has earned the top 4thWay PLUS Rating of 3/3 “Exceptional” on its Premium and Classic accounts/IFISAs, after its history reached enough maturity for our ratings calculations to be meaningful. The 4thWay PLUS Ratings are a measure of both risk…
I’ve taken a new look at what happened to lenders at the different peer-to-peer lending sites that closed or shifted away from the P2P model. The vast majority of closures have been benign for lenders, leading to a profitable return of their money, but there…
For fast-growing startup companies – which includes most P2P lending sites – being profitable isn’t usually the best measure of whether it will succeed. This is especially the case since most of them are not profitable. And you don’t expect them to be. They need and…
