Funding circle

garhur

Interested to know your experience on length of time the selling / withdrawal process is taking. Seems very slow to me on the bit I have put up for sale.

kcrane

3 weeks.

About 80% of my request went through. For some reason the rest returned to my account.

Scots

I raised another thread on this saying my nearly £10k was put for sale 3 weeks ago and none of it has sold yet. If it doesn't sell then only way to get money back is to wait for the various loans to come in but some of them have 5 years to run

Bacman

You have to understand the type of people who use something like peer to peer lending. They are not people who can get best rates on loans as they will have defaulted or deemed as a risk, before I retired I used to open junk mail from Funding Circle, before it hit the bin I looked and their rate was about 10%-15% interest.

Take worst examples, you see on TV people with bad credit history being targeted for loans at 60% or higher interest.

People who are low risk will get loan repayment rates about 1/3 that of Funding Circle, or P2P lending. It is therefore logical to state that you as a potential investor is prepared to risk losing everything you invest (!) on a promise that on a fair wind where the loan people repay and don't default that you might possibly get 6% interest sometimes.

That is a bad risk.

Put your money in a fixed rate bond, it will be guaranteed for up to 5 years at around 2.5% interest, and with a fully UK protected FSCS company.


Don't be greedy especially if you're unlikely to get what you think you will. If you want to gamble everything on the roll of a dice, why not do exactly that and place one bet on black or red at roulette - double your money or lose it all instantly!

Alexland

Bacman wrote: »

You have to understand the type of people who use something like peer to peer lending. They are not people who can get best rates on loans as they will have defaulted or deemed as a risk

It's not fair to presume that P2P borrowers are the great unwashed. People borrow for a variety of cashflow reasons and platforms try and maintain a spread of credit quality and associated interest rates. When we have borrowed (to use ISA allowances following a period of maternity leave) we have had excellent rates with a zero probability of default.

Alex

Zero_Sum

Bacman wrote: »

You have to understand the type of people who use something like peer to peer lending. They are not people who can get best rates on loans as they will have defaulted or deemed as a risk, before I retired I used to open junk mail from Funding Circle, before it hit the bin I looked and their rate was about 10%-15% interest.

Take worst examples, you see on TV people with bad credit history being targeted for loans at 60% or higher interest.

People who are low risk will get loan repayment rates about 1/3 that of Funding Circle, or P2P lending. It is therefore logical to state that you as a potential investor is prepared to risk losing everything you invest (!) on a promise that on a fair wind where the loan people repay and don't default that you might possibly get 6% interest sometimes.

That is a bad risk.

Put your money in a fixed rate bond, it will be guaranteed for up to 5 years at around 2.5% interest, and with a fully UK protected FSCS company.


Don't be greedy especially if you're unlikely to get what you think you will. If you want to gamble everything on the roll of a dice, why not do exactly that and place one bet on black or red at roulette - double your money or lose it all instantly!

If they were offering you 10-15% then maybe you yourself are one of these people you refer to. In amongst my p2p investments i have loads paying sub 5% which are the more credit worthy ones.

kcrane

Agreed, I have been lending on P2P since they started and found those that lend primarily to individuals to be reliable investments (so far). Funding Circle has been good for years, but a combination of their float and pressure on small businesses has, I think, increased the risk too far for my tastes.

For several years I have earned two to three times as much as I would have done in a 2.5% bond.