Is peer-peer lending worth investing in

InSearchOfBargains

One new peer-peer lender is offering lenders 12% annual return on their money, their site is still in beta... But the deal looks too good to be true. The company manages all the loans...you just provide the cash, they promise to get it repaid on time plus the interest.

Can it work?
Is it a con?
And that rate is better than my debt - so is it worth borrowing more money and investing in this and make a profit?

Would be good to hear your views.

DUTR

Don't get too greedy! If something sounds too good to be true, then it maybe :eek:
My bro chanced £1k in P2P and is netting around 6% brave enough to chance it, as these schemes are not covered by the FSA.

InSearchOfBargains

Thanks... Did sound a bit ambitious but its being backed by google - surely it can't be that want to diddle their customers..?

- just want a way to pay back my ever mounting debts back - surely it's time to get some money out payday lenders

UsernameAlreadyExists

It wouldn't make sense to "borrow" in order to lend (and make profit), as the ultimate recipient would just borrow themselves. Ergo, they're clearly too high a risk for the mainstream lenders ... not only that, everyone would be doing it.

Someone taking on a much higher rate loan, with an intermediary taking their own slice, clearly has some serious borrowing issues.

However, if you have a pile of cash burning a hole, then maybe ....

InSearchOfBargains

Thanks for that - its easy to see the offer and jump in feet first.. it's better to discuss which is why I asked the question...

opinions4u

Did sound a bit ambitious but its being backed by google

Are you seriously suggesting that you see Google as some sort of kite mark for investing?

Heaven help us all!

Reaper

InSearchOfBargains wrote: »

its being backed by google

Sounds unlikely. Who is it?

dealer_wins

Sounds like a scam site to me!!

jimjames

InSearchOfBargains wrote: »

Thanks... Did sound a bit ambitious but its being backed by google - surely it can't be that want to diddle their customers..?

One of the ways to spot hoax virus warnings is the liberal use of big company names to authenticate them. Eg Virus announced by Microsoft, reported by CNN. Just having the mention of the name is enough to convince recipients of its validity despite the fact that Microsoft or CNN know nothing about the claims.

Have you checked with Google whether they are actually backing this company with their own money or whether the claim is hot air?

agent69

There are a few companies who have recently jumped on the P2P band waggon. Invest your money with them at your peril.

Ignore the headline rate and see what you might get after fees and bad debts, Also look at the terms and conditions (one new entrant charges lenders for trying to recover bad debts).

You are probably better off sticking with one of the big 4, but remember rates have fallen significantly in the last 6 months.

karlie88

agent69 wrote: »

You are probably better off sticking with one of the big 4, but remember rates have fallen significantly in the last 6 months.

RateSetter, Zopa and Funding Circle....which is the 4th?