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Introducing the LemonFools Personal Finance Calculators

Peer to Peer - experiences and risk?

Any other investment discussions eg. peer to peer lending
toofast2live
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Re: Peer to Peer - experiences and risk?

#68528

Postby toofast2live » July 20th, 2017, 6:37 am

Sorry got my figures wrong. I meant lending for five years at 4% is not very sensible.

Rolling at 3% is not bad, but RS will be making 3% on all the five year 6% loans sold.

AleisterCrowley
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Re: Peer to Peer - experiences and risk?

#68625

Postby AleisterCrowley » July 20th, 2017, 3:06 pm

Yurp, I got the odd email from RateSetter - haven't given it my full attention yet. I dont have much in there and I'm holding for my £100 bonus...

Clitheroekid
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Re: Peer to Peer - experiences and risk?

#68727

Postby Clitheroekid » July 20th, 2017, 11:54 pm

(From The Guardian article):

Ratesetter said it had acquired the vehicle loans out of administration “in order to best protect our lenders’ interests” and that it would “expand our motor finance lending capabilities by integrating the two businesses into Ratesetter product lines”.

Any company that wants to expand its motor finance lending should be avoided like the plague!

Clitheroekid
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Re: Peer to Peer - experiences and risk?

#74022

Postby Clitheroekid » August 13th, 2017, 12:28 am

It looks like Wellesley could be in some difficulty - http://www.dailymail.co.uk/money/market ... -firm.html

This setup has always looked dodgy to me. I recall that last year and again in January they had to put out the begging bowl to raise more funds. The eponymous Graham Wellesley (pictured entering Upper Class Twit of the Year Show!) put up £2.4m, demonstrating great faith one might think, only for it to be revealed that he'd actually borrowed £1.7m of that sum from the company - effectively using the company's funds to buy its own shares.

And despite the company having made substantial losses he paid himself £447,475, which in the circumstances might be described as generous.

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Re: Peer to Peer - experiences and risk?

#74277

Postby SimonTobin1995 » August 14th, 2017, 8:58 am

The news last week was that the regulator is going to enforce P2P lending platforms to be more open about any past defaults and the level of due diligence that they perform on borrowers (sorry I can't seem to post the link but there was a good piece in the FT about it).

If the platforms reveal more information to investors it should greatly increase transparency and hence trust in the industry. Certainly one to keep an eye on over the next few weeks as I do think it will significantly help comparison of the platforms and rates available.

toofast2live
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Re: Peer to Peer - experiences and risk?

#74652

Postby toofast2live » August 15th, 2017, 6:19 pm

The big three or four have been doing this since inception. In Zopa's case for the last 12 years, including 2008 - The Great Recession.

Ramage
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Re: Peer to Peer - experiences and risk?

#74682

Postby Ramage » August 15th, 2017, 8:00 pm

Hi

Online article debunking the artice the Times (may also be valid for the artice in the FT):

http://www.altfi.com/article/3333_behind_the_times_latest_news_on_regulators_p2p_review_is_nothing_new

Published by a company that provides comparison data so they may have a vested interest.

https://www.fca.org.uk/news/policy-development-update

FCA promising to launch a 3 month consultation on new rules for investment and loan crowdfunding, date TBC. I am not going to guess what the new rules are going to be, but do await with interest.

Ramage

DrBunsenHoneydew
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Re: Peer to Peer - experiences and risk?

#76352

Postby DrBunsenHoneydew » August 22nd, 2017, 6:40 pm

Zopa are today saying rising defaults this year. They plan a reduced the amount of lending in the higher risk higher return D-E markets and are also taking steps to attract more lower risk customers, thus increasing the proportion of A and B rated loans. This risk reduction obviously reduces the rate of return.

uspaul666
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Re: Peer to Peer - experiences and risk?

#76364

Postby uspaul666 » August 22nd, 2017, 7:30 pm

That's because ZOPA lend to individuals. I'm finding FC's new automated higher offering very attractive and given their experience in the market I think I trust their projected returns after fees and defaults more than some platforms. AssetzCapital, who are respected for their bad debt management and communication also now has account type to match most appetites looking for sub 9% returns.

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Re: Peer to Peer - experiences and risk?

#76407

Postby nicster » August 22nd, 2017, 10:33 pm

I saw that Funding Circle are going to be changing to an automated only option (well 2 options - balanced projected 7.5% and a conservative projected 4.8%). But isnt AssetzCapital's Great British Business Account, probably better? Admittedly its offering 7% not 7.5%, but then it has a provision fund.

Am i missing something?

stevensfo
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Re: Peer to Peer - experiences and risk?

#76602

Postby stevensfo » August 23rd, 2017, 5:39 pm

Any company that wants to expand its motor finance lending should be avoided like the plague!



Why?

I tend to avoid some banks like the plague, but I've never had a problem with Ratesetter.

uspaul666
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Re: Peer to Peer - experiences and risk?

#76624

Postby uspaul666 » August 23rd, 2017, 7:21 pm

nicster wrote:I saw that Funding Circle are going to be changing to an automated only option (well 2 options - balanced projected 7.5% and a conservative projected 4.8%). But isnt AssetzCapital's Great British Business Account, probably better? Admittedly its offering 7% not 7.5%, but then it has a provision fund.

Am i missing something?

The two 7% account on AC suffer from a lack of eligible loans. It may take a long time before your cash is fully lent out. The 5.5% property one might be a better bet and might offer a better return over periods less than a year.

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Re: Peer to Peer - experiences and risk?

#76678

Postby nicster » August 24th, 2017, 8:35 am

ah, yes forgot about that uspaul, thanks. It's been a while since i invested in that product and it did take a while to fully invest the amount. In addition, the provision fund is 'discretionary', so wont cover all losses even if funds are available (lots of small print to read).

Karellan
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Re: Peer to Peer - experiences and risk?

#117509

Postby Karellan » February 12th, 2018, 8:16 am

I have several p2p accounts , some for 5 years or so. Generally I find it a useful adjunct to my investment mix currently yielding over 6% The returns are certainly more than a bank would give me.

I find that they are all different and need a bit of understanding as to how you can get them to work well for you. Some need a bit of time and some do not. Generally I go for the bigger ones / reasonable repute that are with a preference for secured lending. Its possible to get a feel for their actual track records and how helpful their management is to the investor. I avoid the tiny ones usually and practice diversity.

Those great headline rates that some claim dont really appear in a realistic portfolio and do come with a cost but then as investors you probably already knew that.

There is always something changing in the game which needs attention , its not a static field at all. The amounts that I invest with each goes up and down as my feeling about each changes.

hadjigs
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Re: Peer to Peer - experiences and risk?

#166001

Postby hadjigs » September 13th, 2018, 1:31 am

has anyone tried rebuildingsociety? they offer a much higher rate of return at 9.5% and they also support small businesses.

Clitheroekid
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Re: Peer to Peer - experiences and risk?

#166089

Postby Clitheroekid » September 13th, 2018, 1:35 pm

hadjigs wrote:has anyone tried rebuildingsociety? they offer a much higher rate of return at 9.5% and they also support small businesses.

It's an old cliché that the higher the reward on offer the higher the risk, but like most clichés it's based on truth.

Any `investment' offering a secure return of 9.5% is probably too good to be true. This is because it simply isn't necessary to offer such high rewards in today's low interest rate climate, and nobody is going to offer `investors' more than they need to as it doesn't make commercial sense to do so.

In any event, in their responses to the critcical comments on Trustpilot they themselves only appear to claim an average return of 6% - https://uk.trustpilot.com/review/www.re ... ociety.com

The negative comments appear to be articulate and genuine, and I'm afraid this level of negative review would definitely put me off.

There's another negative review here - https://www.financialthing.com/rebuilding-society-2/

Out of interest I had a look at a couple of the companies in the screenshot half way down the page. Play Away (Reddish Ltd) was dissolved in June 2017. The accounts are overdue for a & a News Stores Ltd, which is nearly always a bad sign; and Creative Building Maintenance Ltd is in liquidation. From looking at the liquidator's report it looks unlikely that the lenders will receive any return.

So whilst I appreciate this is just a snapshot and is only looking at some of the negative aspects of the company it certainly wouldn't be of interest to me.

mrbrightside
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Re: Peer to Peer - experiences and risk?

#166106

Postby mrbrightside » September 13th, 2018, 3:04 pm

hadjigs wrote:has anyone tried rebuildingsociety? they offer a much higher rate of return at 9.5% and they also support small businesses.


I review the P2P forums when researching real-life experiences of services (which include Rebuilding Society).

http://p2pindependentforum.com/board/23 ... ng-society

Itsallaguess
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Re: Peer to Peer - experiences and risk?

#166111

Postby Itsallaguess » September 13th, 2018, 3:59 pm

hadjigs wrote:
has anyone tried rebuildingsociety? they offer a much higher rate of return at 9.5% and they also support small businesses.


Hi hadjigs,

Can I please ask if you've got any connection to rebuildingsociety?

I only ask because you're a brand new poster, with a single recent post which seems to promote a 'high-return' P2P option, which is a situation that I hope you'd understand is likely to ring alarm-bells for some users of this forum, if they were aware of these facts.

If you could please confirm that you've no connection to the company then that would of course go some way to alleviate those potential concerns...

Cheers,

Itsallaguess

uspaul666
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Re: Peer to Peer - experiences and risk?

#166120

Postby uspaul666 » September 13th, 2018, 4:54 pm

“Rebs” is pretty much universally regarded as a running joke on the p2pif...
Mind you, there’s quite a seismic adjustment of attitude and expectation going on for p2p generally IMHO.

formoverfunction
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Re: Peer to Peer - experiences and risk?

#166122

Postby formoverfunction » September 13th, 2018, 5:10 pm

uspaul666 wrote:“Rebs” is pretty much universally regarded as a running joke on the p2pif...
Mind you, there’s quite a seismic adjustment of attitude and expectation going on for p2p generally IMHO.


"there’s quite a seismic adjustment of attitude and expectation going on for p2p generally" would you explain what adjustment? Thanks.


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