Peer-to-peer lending sites: MSE guide discussion

masonic

cfw1994 wrote: »

Are you not? Do Kuflink concern you?

Lots of multi-tranche property development loans in there. That's enough to concern me. Skin in the game ranked behind investors claims, which is more reason to be concerned of platform failure. I also have some reservations that their 'tiered' loans may be viewed as not treating customers fairly, given the marginal difference in rates and huge difference in risk.

So while I had been cherry picking some of the lower risk loans, I've not made a new investment for almost 6 months and am exiting the platform as loans are repaid.

cfw1994

AdrianC wrote: »

I have no opinion on Kufflink - they're not a platform I've ever really looked at in any detail.

But I'd put more credence to a political manifesto than Trustpilot.

Ha!
So.....do you still invest new money into P2P?
And where would you get your trust in P2P companies from?

You can see more on Kuflink history at https://www.kuflink.com/about-us
Or other reviews at

• https://obviousinvestor.com/kuflink-review
• https://explorep2p.com/kuflink-review
• https://innovativefinanceisa.org.uk/providers/kuflink
• https://www.financialthing.com/kuflink-review
  

They put 5% of funds into every loan they make, and that is the first money “hit” should the loaned default.

Seem as sound as P2P can be, to my eyes.....but always welcome more experienced views!

cfw1994

quirkydeptless wrote: »

Did it and passed the test!

LOL!
I just did too: pretty thorough really, I did have to re-sit one question :rotfl:

cfw1994

masonic wrote: »

Lots of multi-tranche property development loans in there. That's enough to concern me. Skin in the game ranked behind investors claims, which is more reason to be concerned of platform failure. I also have some reservations that their 'tiered' loans may be viewed as not treating customers fairly, given the marginal difference in rates and huge difference in risk.

So while I had been cherry picking some of the lower risk loans, I've not made a new investment for almost 6 months and am exiting the platform as loans are repaid.

Pretty sure the bold bit above isn’t correct?
http://help.kuflink.co.uk/en/articles/2403097-what-is-kuflink-s-guarantee

Not sure I share the concerns you have. Other than, of course, all P2P is a risk!!

mobilejunkie

I am fuming with Ratesetter. One year ago I put in £1,000 based on a bonus offer via MSE. The website is appalling and obscure - you can't really see where your money is or who it's invested with, what rate it's actually earning or much else. I earned about half what I expected. Now I've just been told that the person/body it was lent to (they chose them and I have no idea who or what it even was) repaid their loan early - in June. Since I didn't reinvest the money it's been sitting there earning zilch ever since AND because it wasn't invested (I thought it was and didn't change any settings from when i originally set up the account) they won't pay the bonus.

Absolutely disgusted with them. Note for those who don't realise, this is a higher risk investment without FCS protection. Unlike most investments, you are left in the dark as to where your money is invested or what rate it is actually attracting. ANY inducement is something they have no intention of paying. It is not worth the risk and definitley completely untransparent.

I have naturally made a formal complaint which I will pursue to the FOS if necessary. I have withrdrawn my money and as a seasoned and experienced investor (Since the early 80's) I will never go near them again - and would strongly advise everyone else not to get sucked in.

I have just posted this on another thread. I would now avoide P2P lenders as a result of my appalling experience with Ratesetter.

AdrianC

cfw1994 wrote: »

So.....do you still invest new money into P2P?

Last new money I put in was over 18 mo ago, and that was a one-off small break from a 6mo+ stand-still. My balance is down a LOT from the peak, but unfortunately not enough.

I've got more exposure than I'd want to Lendy-in-admin (with ~20% as much as Ly between CO and MT), but fortunately my current estimate is that balancing estimated write-downs against past gains, I should come out roughly evens at worst. None of the rest are particularly worrying me, and the overall cross-platform XIRR should be way ahead of bank returns.

And where would you get your trust in P2P companies from?

My own research, and genuine peer opinion via the P2P forums. Certainly not long-discredited astroturfing "review" sites.

AdrianC

mobilejunkie wrote: »

I am fuming with Ratesetter.

Absolutely disgusted with them. Note for those who don't realise, this is a higher risk investment without FCS protection.

If I hadn't bothered to read even the most basic information before signing up, then I'd be fuming with myself.

keyboardworrier

Kuflink used to invest in the first 20% of the loan, on a first loss basis, that gave me a lot of confidence to invest quite a bit early on. 5% is still better than nothing and at least they have an incentive to put less riskier loans on the platforms than others may do.



P2P generally is going through a bit of a rough patch, it might be best to sit on the sidelines and wait and see what happens - I suspect we haven't seen the last of platforms collapsing yet!

masonic

cfw1994 wrote: »

Pretty sure the bold bit above isn’t correct?
http://help.kuflink.co.uk/en/articles/2403097-what-is-kuflink-s-guarantee

I wrote:
"Skin in the game ranked behind investors claims"

The link you posted states:
"Kuflink co-invests 5% in all Select-Invest loans. This means that in the unlikely event that a loss was to occur Kuflink would cover the first 5% of any loss."

So I'm sure what I wrote is correct. Kuflink's skin in the game is ranked behind investor claims. In the event of a default, investor claims would be paid ahead of Kuflink's skin in the game. This creates a risk to Kuflink's financial stability when the defaults start rolling in (and they surely will). The FCA frowns on platforms doing as Kuflink has done, because it threatens their stability.

Not sure I share the concerns you have. Other than, of course, all P2P is a risk!!

I didn't have any of those concerns a couple of years ago. Having been caught up in 3 platform collapses, and narrowly escaping a fourth, I now appreciate the risks a little better.

AdrianC

masonic wrote: »

I didn't have any of those concerns a couple of years ago. Having been caught up in 3 platform collapses, and narrowly escaping a fourth, I now appreciate the risks a little better.

I fully understood the situation. I just wasn't expecting the UK's current, sustained, and determined attempt at economic hari-kiri.

Combined with an inrush of naive money that didn't really understand the risks, and the platforms ignoring borrower standards in a rush to try to meet the demand, and it's all been a bit of a perfect storm.

The concept was, and still is, sound.
The execution - like so many things - has been lacking, and that lack has been exacerbated by external factors.