Peer-to-peer lending sites: MSE guide discussion

N1AK

Rates on p2p sites seem to have picked up over the last couple of months. I've started feeding money back into Ratesetter gradually now that the 5 year rate is back above 6%. I'm also putting more into Funding Circle where returns above 7% should be possible.

Obviously there are risks involved but I think those are pretty marginal and I think I'd be comfortable with up to about 20% of my savings in an established p2p lender.

orcocan

hi, has anyone invested via crowdcube using their SIPP? Any direct experience? Thanks

RosieW1

I have been researching and reading a lot of comments on these types of companies for some time now and wondered if anyone can answer a question for me.
Are there any of these companies, or any other type of company, that would lend money secured on a private pension that can be cashed in in seven years time?

Any comments/opinions would be very welcome.

Jonbvn

RosieW1 wrote: »

Are there any of these companies, or any other type of company, that would lend money secured on a private pension that can be cashed in in seven years time?

I would say very unlikely. How could any lender access the cash if you defaulted before the pension money was available?

rwgray

Rosie, p2p lenders wouldn't be set up for anything like that, but have you spoken to your own bank? They may be reluctant, but they still have some flexibility to act.

JBond007

over the last couple of years I have been slowly but surely adding to my investments in p2p/crowdfunding companies and so far so good.

anyone got any ideas on the future of this newish sector?

Archi_Bald

RosieW1 wrote: »

I have been researching and reading a lot of comments on these types of companies for some time now and wondered if anyone can answer a question for me.
Are there any of these companies, or any other type of company, that would lend money secured on a private pension that can be cashed in in seven years time?

Any comments/opinions would be very welcome.

There are some around but most are probably scams. http://www.thepensionsregulator.gov.uk/individuals/dangers-of-pension-scams.aspx

thedovonron

Hi All,
Does anyone know how Peer to Peer lending would work from a tax perspective on returns if the investment was from a registered Charity?
Thanks

bowlhead99

Presumably, if the p2p company you are interested in accepts investments from charities and trusts and other types of organisations rather than just individuals, it would work just like it does with individuals - you get told how much interest you made, get proceeds distributed to you gross of tax and net of expenses, and deal with all your tax returns yourself.

Generally charities are exempt from tax on most types of investment income and investment disposal proceeds as long as the income / proceeds are only used for charitable purposes. Charities typically only pay tax on their trading income. You could check this with your accountant or HMRC.

Of course, if you were trustee of the charity you would want to make sure that investing in a portfolio of loans made to individuals, with the aim of generating investment income with which to further the charity's charitable activities, is within the scope of what the charity is set up to do. In some cases they may be set up in a somewhat restricted way and to avoid having their trustees be put in a position where they have to make decisions on investment strategy without taking expensive advice from a qualified professional, only envisage that their cash surpluses be deposited in nice safe bank deposit accounts. That's not a tax question of course, more a bylaws/ objects operational question.

s71hj

Has anyone any experience of lending through Emoneyunion lending works or funding secure. Thanks