THE HIGH levels of transparency vaunted by the peer-to-peer lending industry could be under threat as platforms warn that investors are sharing too much information about bad debts.Several P2P investor forums have launched in recent years, creating a community where users can discuss their portfolio. This can often involve detailed discussions about defaulted loans, with investors sharing communication from platforms about the recovery process.But P2P platforms say that these investors are not only breaching their terms and conditions or privacy notices but potentially derailing their efforts in recovering funds.This issue mainly impacts platforms offering a manual lending option. Firms that purely offer auto-invest products – including the 'big three' – may not be affected, as investors do not always know which specific borrowers are receiving their funds.Some auto-invest platforms, such as Funding Circle, let investors see which businesses their money is being lent to."Where there is a borrower that is trying to sell or refinance a loan to redeem the existing lenders, the sort of comments that can be placed on these forums could cause the potential buyer or refinance lender to pull out," said an executive at a P2P platform that offers a manual lending option.
8% Yield Loan LatestThe latest loan from property-backed Seascape (currently we are offering number 20 in the series) is proving popular. The latest A-rated tranche yields 8 per cent gross, at a fixed rate for five years. After less than a week the issue is more than 42 per cent subscribed. As is the case with earlier tranches of credit, we have used our best efforts to ensure the truth of the assertions made, but cannot warrant their absolute accuracy. Fuller detail is available to logged-in members.
A Process Guide To Innovative Finance ISA InvestmentMoney&Co. lenders have achieved an average return of more than 8 per cent gross (before we deduct our one per cent fee). That figure is the result of almost £15 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders' capital is at risk. Read warnings on site before committing capital.All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.So here's our guide to the process:
Risk: Security, Access, YieldDo consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here's one of several earlier articles on security, access and yield.