Future of P2P investment. Is diversification the real answer?

Malone2020

Very interesting discussion. 
I dipped my toe into P2P. This was after I had increasingly seen it being referred to as a means of investment so I was curious to have a go at it though I only committed a small amount of money that (as with all my investments) I could afford to lose - but obviously don't want to lose it 😂
I decided to give it a go about 18 months or two years ago and committed to one platform Huddle. This offered prospective interest of 12%-16%,with a secondary market to buy/sell holdings. Even at this stage the interest rate seemed questionable to me. Initially everything went swimmingly with all investments paying back as planned. Then, even before Covid, one or two of the firms loaned to were regularly late with their payments - though another firm did pay off their loan ahead of schedule (not great in terms of earning interest but at least the invested capital was not lost). As it transpired two of the companies defaulted. One has had its loan put on hold and another is being taken to court by Huddle (admittedly this was the smallest holding I had and it was nearly paid up anyhow).
From my own experience of road testing it, Id echo others and say that there's probably better ways to invest. Mayeb it was that I came to the party too late or it was the particular platform that I used, but I don't see it as a feasible investment strategy in the long term. Sure the FTSE might have tanked this week but at least I can hold stocks and then sell them upon recovery. Can't really do that with an IOU from a car showroom that's gone bust.... 😂

DueDilly

Anyone got losses with Crowd2fund? Check whether the Director of that company was the director of a previously failed business. If he was ask for your money back. They've change the wording on the "new" website, but it previously said:

•              Any director of the business was also the director of a business which failed from unpaid debt or was the director of a failed business which failed in the same industry in the last 5 years. The above factors will result in an immediate decline of application”
They have added a bit to cover themselves now.
Don't just check CH, check Companycheck

dunstonh

Sure the FTSE might have tanked this week but at least I can hold stocks and then sell them upon recovery.

It hasn't tanked.  Just 4% off the week before and about the same as what it was at the start of the month.   However, more importantly, the FTSE100 is no measure of the stockmarket other than a quick and dirty reference.  Nobody should be heavily invested in the FTSE100.  Its an awful index and has been for many decades.