P2P lending

mollycat

Dan83 wrote: »

Hi,
I know the risks of P2P lending,

I've got some money invested in Wellesley & Co, it's pretty much set it up, pay the cash and for get about it, I haven't logged on to my account since the day I set it up, as they do everything,

Anyway now I'd like to dip my toe in the water again, this time with abit more control/better returns.

What are people's experiences with funding circle, I've done the search on here but it brings up all kinds of stuff.

I'm not interested in rate setter as the interest rate is easily beaten with no risks by banks.

Thanks for any replies

Remember you wont get a rate of 40%.....like you thought you would in this thread! (Post no 7).



https://forums.moneysavingexpert.com/discussion/5381214

Dan83

Haha, I thought I found a winner that day, until someone came along and pointed out it was per year.

N1AK

Dan83 wrote: »

Hi,
What are people's experiences with funding circle, I've done the search on here but it brings up all kinds of stuff.

I'm not interested in rate setter as the interest rate is easily beaten with no risks by banks.

My biggest piece of advice with FundingCircle is stay away from automatic investment and the 2nd hand loan parts market. Some people check on the companies they have debt for regularly and if they see any early warning signs dump it into the parts market.

Other than that it's pretty easy going, keep your money spread over a lot of small loans and treat it more like an investment (real risks of losses) than cash savings.

The difference in return between Funding Circle and Ratesetter (accounting for bad debt) is pretty small in my experience. If you can beat Ratesetters returns via a bank then you can likely either match or beat FundingCircles or you're using Ratesetter wrong.

Dan83

N1AK wrote: »

My biggest piece of advice with FundingCircle is stay away from automatic investment and the 2nd hand loan parts market. Some people check on the companies they have debt for regularly and if they see any early warning signs dump it into the parts market.

How do you go about checking on companies and finding out about their finances?

agent69

MarkFromMullion wrote: »

Yes, of course, you're right, I hadn't thought of the secondary market. In fact I've just had a look and found one loan part on offer for a mere £3.67.

If the value of the loan part on the secondary market is significantly less than the £20 it started life as, then it is a long way through the loan tern.

General view is that the older the loan part the more likely it is to default. Try reading the sell before 6 months thread on the independent forum.