Alternatives to P2P for 1-3 Year Investing

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stehouk wrote: »

I'm getting 10% on Archover

Do you get many defaults ? What kind of loans are you buying?

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stehouk wrote: »

I'm in 6 loans 2k in each, all between 8-10% and between 6mths-24mths duration, only one had a problem which was resolved without any missed payments and the company is now trading after being backed by Archover and its much larger parent company.
I moved my funds from funding circle due to bad debts, cannot fault Archover myself.

1 Loan completed on time last month another completes in 2 days, i also got £75 sign up bonus.

Do you get many defaults? What type of loans to you by (growth, startup, tax bills etc) , when do you you buy and for how long ?

How quickly do they sell? FC sell in minutes

dont_use_vistaprint

I've a few warnings of non-payment but no actual default by guarantees, I dont keep for long and am very choosy and I also run a business so i know a legit loan when I see one :-)

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firestone wrote: »

Maybe its not a lack of confidence in Ablrate in only reinvesting interest just that they have reached their limit of new money same as reinvesting div's in a fund
But still no sure why the OP if they can get 12% today on P2P is looking to squeeze a couple of % extra for only 1 - 3 years

Are you serious? Why would you not maximise ROI


I said 8-12% not 12%

Current parts on a £3.7k pot
Gross Yield 13.0
Annualised 11.5
Fully Diversified after fees/debts 8.4
Losses £0

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eskbanker wrote: »

What I would do is accept the fact that such a thing doesn't exist, reset expectations accordingly and go with something in the real world....

Thats really unhelpful, if you dont the answer, dont feel the need to reply. Deduct 1 point for being an !!!!

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bowlhead99 wrote: »

The OP is looking for a three year return. In three years time, assuming we have a recession (which is probably about due, based on timelines from history and the last nine years of bull markets) you can easily imagine some platforms *not* choosing to 'back' a defaulting borrower, just as you can imagine some platforms going completely belly-up.

I'm looking for 1-3 return, its very different. I often sell all loans and start again within 1 year even, the total time is 1-3 years

firestone

dont_use_vistaprint wrote: »

Are you serious? Why would you not maximise ROI


I said 8-12% not 12%

Current parts on a £3.7k pot
Gross Yield 13.0
Annualised 11.5
Fully Diversified after fees/debts 8.4
Losses £0

Guess by mentioning reinvesting the interest i was suggesting to maximize ROI but take your point on the 8 - 12%.Maybe a company like Marketinvoice could be worth a look if your looking to spread your money

bxboards

stehouk wrote: »

I moved my funds from funding circle due to bad debts, cannot fault Archover myself.

1 Loan completed on time last month another completes in 2 days, i also got £75 sign up bonus.

I think Archover's defaults % are higher than Funding Circle when you look at the very small borrower pool.

It tends to be the same borrowers over and over, borrowing to pay back a prior Archover loan. That can only go on so long, and the last person holding the parcel will carry the can.

The recent defaults - UK E... and Unit B... have all followed that pattern. Vent.... went down two months after taking on a huge loan.

I use Archover myself, but it's important to give everyone a balanced view here.

I think they are a little bit complacent with regards to due diligence..or maybe over-confident to be more charitable.

stehouk

I have no defaults as yet on Archover, and i like the way i am paid out monthly to my bank account so my money is not at risk on the platform earning nothing, i move it to a savings account until i'm ready to reinvest it, i don't normally go for refinance loans because i think when will they ever pay down the debt and it might be my loan they default on (although Archover have regular business's that continually refinance their loan's,) i don't go for start ups, i like loans to fund growth as for me it shows some stability in the company, i think i am due some luck after my terrible experience on funding circle.

Fatbritabroad

bowlhead99 wrote: »

So although you say you are getting 10% on each, a sixth of your deposits were subject to a 'problem' which was only resolved when the p2p platform company put its own money into 'backing' the borrower to avoid a situation where the platform loses face, and would have to tell its platform investors that it's quite easy to lose money - and admit that nobody should be signing up to their service thinking they can really get 8-10% returns while expecting them to be safe.

If you had instead lost the sixth of your money due to a default where the platform didn't decide to throw its good money after bad and 'back' the investee company, the loss would exceed a year's returns made on the other five sixths of loans you had made.

The OP is looking for a three year return. In three years time, assuming we have a recession (which is probably about due, based on timelines from history and the last nine years of bull markets) you can easily imagine some platforms *not* choosing to 'back' a defaulting borrower, just as you can imagine some platforms going completely belly-up.

Sure, you got a one-off £75 welcome bonus which comes out of the platform's potential future profits, as they are looking to buy market share. No problem with that. But the idea that someone with a 3-year view should expect to make significantly more than 8-12% while only taking the risks associated with p2p loans of 8-12% interest rate. Seems unrealistic.

Am I being overly pessimistic? Realistic, I think.


So you have lost confidence in those high returns to the extent that you will now only invest no more than the amount of interest that they have already paid you, rather than any fresh new money?

Doesn't bode well for OP, who is hoping to exceed the 8-12% rate of return which was historically available from certain P2P investments, without looking to take on any more risk than the typical risks associated with that level of return.

Not lost confidence just recognising as you quite rightly say you don't get that kind of return without a corresponding risk and so you diversify and manage that accordingly. I'd love to be getting 13% return on all 20k or even all 100k of my liquid investments but feel platform risk is underrated in what is a new area. I'd rather get a blended 8%return over a number of platforms and keep the risk comfortable. Still 8 times what you can get in the bank (having used the high interest accounts already) as I get older I'll probably reduce p2p further