Peer-to-peer lending sites: MSE guide discussion

thenewcomer

i have not invest in col in the past few months because it was so illiquid. in fact i was trying to sell out, but am still stuck with a large sum of money in it.

my priority now is to fill up my ISA allowance for this tax year. so selling my holdings on MT and ABL.

thenewcomer

does bondmason work as an agent? helping investors to lend through a diversified portfolio? i have never look into bondmason.

AdrianC

Yes, that's exactly what they are. Set your account to 1% or 2% diversified, and they invest it into loans on other platforms, performing their own DD on them in return for a cut of the return. XIRR for me of a snidge under 6% over a year and a bit, including some cash-drag.

Trentenders

For the avoidance of doubt/confusion, Bondmason's Rep on p2p forum advised as follows:

"In terms of our involvement with Collateral, we were pleased to work with them on their property lending opportunities. We invested a total of 2.48% of invested capital through Collateral, of which 0.78% has repaid and there is 1.69% is outstanding.


In each of the loans, there is security and the underlying borrower continues to repay.


We have offered to step in to work out any of the loans we are invested in (if needs be); for the benefit of all lenders (whether they have come through BondMason or not). We will see if this is required."

keyboardworrier

4thway have commented

https://www.4thway.co.uk/news/collateral-uk-bust/

Fatbritabroad

keyboardworrier wrote: »

4thway have commented

https://www.4thway.co.uk/news/collateral-uk-bust/

Yes I'd not heard of this site before looks useful. I notice ablrate hasn't provided info to be reviewed yet on this?

keyboardworrier

Fatbritabroad wrote: »

Yes I'd not heard of this site before looks useful. I notice ablrate hasn't provided info to be reviewed yet on this?

It would be useful if 4thway did an article on platforms which don't appear and give reasons for it, MoneyThing is unrated and Unbolted is omitted (Both of these platforms seem to be fully authorised by the FCA though which is a comfort)


On a side note I've just checked the FCA status of Lendy and they are running under interim permissions , I only have £500 or so on there but people with larger amounts might be interested in this info.

Fatbritabroad

Yes I think this episode will see those platforms with ifisas gain market share

TheMoniac

Thanks to jamesd for the shortlist of P2P lenders posted.

Looking at P2P before investing I do a quick credit check on the financial status, see how long they have been trading etc. As James wisely suggested in an earlier post and thread diversification is advisable. Collateral (UK) has now gone into administration which highlights the risk to lenders is not just the potential default on the loans themselves.

Some P2P Lenders are regulated and authorized by the FCA, others are not. The licences on the FCA Register includes a section for 'Client Money'. Some licences specify that the company "must protect the money it holds and/or controls on behalf of customers. It cannot lend this money or use it to finance its own business." This suggests that if the company were to fail, then customer money is ring-fenced from claims by creditors on the company's assets. This clause does not appear on the licence details of all companies listed on the FCA register. What is also not clear with certainty is whether P2P lenders are 'clients' for the purposes of 'client money'.

I've been looking into P2P and did some research on other P2P lenders. Some companies in P2P are relatively new, some have quite modest resources so not much of a financial cushion. Many have accumulated losses and are supported by shareholder capital.

Unbolted is Open Access Finance Ltd
https://www.checkfree.co.uk/Company/08778211/OPEN-ACCESS-FINANCE-LTD/Company-Details/
https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000003LFDN6AAP

Lending Works is Lending Works Ltd
https://www.checkfree.co.uk/Company/08302549/LENDING-WORKS-LIMITED/Company-Details/
https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000001m2IJAAA2

Ratesetter is Retail Money Market Ltd
https://www.checkfree.co.uk/Company/07075792/RETAIL-MONEY-MARKET-LTD/Company-Details/
https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000001m1OXfAAM

Bondmason is Bondmason Ltd
https://www.checkfree.co.uk/Company/09616491/BONDMASON-LTD/Company-Details/

Ablrate is Aviation and Tech Capital Limited
https://www.checkfree.co.uk/Company/07940046/AVIATION-AND-TECH-CAPITAL-LTD/Company-Details/

Moneything is MoneyThing Capital Limited
https://www.checkfree.co.uk/Company/05254797/MONEYTHING-CAPITAL-LIMITED/Company-Details/

Lendy is Lendy Ltd
https://www.checkfree.co.uk/Company/08244913/LENDY-LTD/Company-Details/
https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000TAcPLAA1

Funding Circle is Funding Circle Ltd
https://www.checkfree.co.uk/Company/06968588/FUNDING-CIRCLE-LTD/Company-Details/
https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000001m13H9AAI
Holding company is stated as Funding Circle Holdings Ltd.
https://www.checkfree.co.uk/Company/07123934/FUNDING-CIRCLE-HOLDINGS-LIMITED/Company-Details/

ThinCats is Business Loan Network Ltd
https://www.checkfree.co.uk/Company/07248014/BUSINESS-LOAN-NETWORK-LIMITED/Company-Details/
https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b00000209JE3AAM

MarketInoive is MarketInvoice Limited
https://www.checkfree.co.uk/Company/07330525/MARKETINVOICE-LIMITED/Company-Details/
https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000003Oav1wAAB

LendingWorks is Lending Works Ltd
https://www.checkfree.co.uk/Company/08302549/LENDING-WORKS-LIMITED/Company-Details/
https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000001m2IJAAA2

Landbay is Landbay Partners Ltd
https://www.checkfree.co.uk/Company/08668507/LANDBAY-PARTNERS-LIMITED/Company-Details/
https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000001YYU7oAAH

Folk2Folk is Folk2Folk Ltd
https://www.checkfree.co.uk/Company/08178576/FOLK2FOLK-LIMITED/Company-Details/
https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000001lzUP1AAM

Assetz Capital is Assetz SME Capital Ltd
https://www.checkfree.co.uk/Company/08007287/ASSETZ-SME-CAPITAL-LIMITED/Company-Details/
https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000002C3CSzAAN

The footer of pages on the websites usually reveals the Limited company behind the trading name and T&Cs on the website identify the company. As always DYOR.

thenewcomer

4thway has not done a review on abl before. do we know why?