Anyone using collateral p2p?

bigadaj
bigadaj Posts: 11,531 Forumite
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in Savings & investments
Just after people's experiences where relevant?

I've withdrawn from Savingstream as the defaults seem to be increasing.

Have money in Ablrate and Moneything but the deal flow is low with those two and prefer a bit more diversification.

Rates at Zopa and Ratesetter are too low for me for the perceived risk, well not quite true as I'm waiting for my anniversary for the £1k bonus at Ratesetter.
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Comments

  • masonic
    masonic Posts: 23,240 Forumite
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    Yes, I've been using Collateral for quite a while now. I'm a very happy customer. At the moment, it seems to be the best choice after MT and ABL. During the time I've been with them, they have really excelled in listening to customer feedback and being guided by their user base.
  • fun4everyone
    fun4everyone Posts: 2,339 Forumite
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    Not invested there yet but also considering pulling the trigger. Looks similarish to Funding Secure.

    I went and had a look about referral bonuses...from https://www.collateraluk.com/faqs/
    16. Can I earn rewards for referrals?
    We will be offering this service very soon and will let you know when it’s available. Below is how it will work.
    When you have set up an account you will be given a personalised link to share with friends, family, colleagues and clients, or to use on your website, blog or social networks. When a new investor joins Collateral using your link we will credit your account with 2% of their initial investment and 1% of any further investments as a thank you.

    Perhaps I will wait for that to kick in. Usually there is something for both the people involved.
  • masonic
    masonic Posts: 23,240 Forumite
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    fun4everyone wrote: »
    Not invested there yet but also considering pulling the trigger. Looks similarish to Funding Secure.
    Yes, except the secondary market is much simpler and up to this point COL is still keeping the majority of its loans non-property backed. I think it was SS and MT they originally tried to emulate.
    Perhaps I will wait for that to kick in. Usually there is something for both the people involved.
    I'm not sure how long that's been there, but discussion around a referral scheme has been going on for quite a long time. I don't see this being implemented until COL generates the necessary deal flow to support an increase in customer base.
  • nushnush
    nushnush Posts: 81 Forumite
    very happy with collateral, money transfers are very quick in both directions, the comms are first class, not too many property loans so good to diversify, downside is not many new loans recently.
    if you like this kind of loan then i would recommend taking a look at unbolted as well.
  • Broken_Biscuits
    Broken_Biscuits Posts: 356 Forumite
    I'm using collateral in addition to Savingstream.
    Transfers take about 15 minutes so far from my experience!

    Prefunds are minimal. Maybe as much as £150 if you are lucky. Then you have a few hours from 10am to double whatever the prefund was until it's open to a free for all.

    Lots of loans coming through but due to bid restrictions would take a long time to get heavily invested.

    A good addition to other platforms.
  • takesyourchances
    takesyourchances Posts: 828 Forumite
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    I have been looking at adding Collateral as well to diversify my small P2P portfolio as well, at present I have Ratesetter, Funding Circle and Zopa from the early days.

    How much is the lowest investment amount and roughly how long does it take to match loans?

    It is good to see some positive feedback from users of Collateral as well on here.

    Thanks.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    bigadaj wrote: »
    I've withdrawn from Savingstream as the defaults seem to be increasing.

    What were the nature of the investments you bought into?
  • masonic
    masonic Posts: 23,240 Forumite
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    takesyourchances wrote: »
    I have been looking at adding Collateral as well to diversify my small P2P portfolio as well, at present I have Ratesetter, Funding Circle and Zopa from the early days.

    How much is the lowest investment amount and roughly how long does it take to match loans?
    I don't think there is a minimum. You can deposit and invest £1 or less if you really wanted to. There is no such thing as loan "matching" on Collateral. Like the other popular platforms at the moment, you bid on individual loans after doing your own due diligence. Loan information for pipeline loans is usually available at least 24 hours before they go live. For new loans you can bid on them in advance. Everything else is done in real time, subject to availability.
  • takesyourchances
    takesyourchances Posts: 828 Forumite
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    masonic wrote: »
    I don't think there is a minimum. You can deposit and invest £1 or less if you really wanted to. There is no such thing as loan "matching" on Collateral. Like the other popular platforms at the moment, you bid on individual loans after doing your own due diligence. Loan information for pipeline loans is usually available at least 24 hours before they go live. For new loans you can bid on them in advance. Everything else is done in real time, subject to availability.

    Thanks very much for explaining this. The others I have some P2P set for 5 year loans etc and re-invest payments. I see there is 6 months etc on Collateral, that is good to know lower amounts is possible on this platform.

    I was thinking to test out Collateral with a few shorter term loans like this at say £100 a loan to see how the paltform works with short durations like this and add this to my other 3 P2P platforms, hopefully that would be a reasonable starting strategy for pockets of £100 per loan for shorter periods to diversify from the others as well.

    Thanks again, any more experiences is welcomed :)
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    Thrugelmir wrote: »
    What were the nature of the investments you bought into?

    It's all property on there, I've not had a default on any p2p as yet, and was fairly careful with those I placed money into, their valuations were frequently optimistic to say the least and there were questions about their wid due diligence.

    The lending is all secured, many people seem to buy in and then sell out a few months before the end of term, looking to pass onto more naive customers, but just looking like too much hassle to me.

    Liquidity is currently good, or it was until the recent £7 million loan bunged the system up, and even with the defaults no one has lost anything on the platform as yet. It's just that the number of non performing loans has been increasing and for 1% a month then risk to capital and losses are still concerns.
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