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p2p lending


mattyg1086
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The ones I have read about it's apparently easy to put money on but SOME (not all) are difficult to get your money back out.

 

I have also read that some are not regulated the the financial authority ( is it the FAA?) that overlooks normal investors and banks etc.

 

Money saving expert forums has a whole section for investments may be worth a look?

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Don't do in unless the platform operator is FCA regulated and even then think twice.

 

Don't do it if you can't afford to lose the money. Despite the claims and opaque statements on some sites, your capital isn't guaranteed and the returns aren't guaranteed - your money is at risk.

 

The only people making real money are the platform operators, so using the casino analogy, go and chuck on red/black once a month and have some fun betting.

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Don't do in unless the platform operator is FCA regulated and even then think twice.

 

Don't do it if you can't afford to lose the money. Despite the claims and opaque statements on some sites, your capital isn't guaranteed and the returns aren't guaranteed - your money is at risk.

 

The only people making real money are the platform operators, so using the casino analogy, go and chuck on red/black once a month and have some fun betting.

Pretty good summary. How much are you looking to invest ?

 

Juggling your bank accounts around can get you a decent %. I think nationwide is giving 5% upto £2500 if you transfer an account to them with two DD's!

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Ive got about 30K in one. Over the year had around £2K interest. With another 2K to come in. Most loans are 6/12 months and 11/13% interest.

Lost faith in the Banks and not to fussed about the odd loan going pear shaped. So far no probs and my loans range from £30 to £1500.

Edited by bear-uk
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I'd love to know their margin.

 

Bridging loan interest rates are 20%+ p.a.

 

Offering you - the lender - 12% appears to be good business for the platform that sits in the middle.

 

Moneything

 

 

There's a lot of interest in the financial markets for high quality corporate asset backed lending - the question I'd be asking would be why would anyone pay away 12% to raise money if that's what's on offer (and why would a business pay 20% if they have high quality assets). The simple answer is that they won't! They're paying these sorts of rates because of the risk associated with such lending which, unfortunately, very few people investing are likely to be able to assess or fully understand (especially when some of the platforms give loans "ratings" in the A-D style used by (but not using equivalent scales as!) the big credit rating agencies).

 

~8% gross margin may sound like a lot, but most of these firms have very small loan books and should be spending heavily on credit analysis and servicing teams.

 

Not a sector I'd put money in to without extensive due diligence on the platform and loan to really understand what I was getting in to.

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