The P2P Market Is Maturing – Plus Loan Latest

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The market in which we operate, the peer-to-peer business lending (and now also property-secured lending) sector is maturing. The unqualified early optimism of some has been replaced by a more measured view, as some companies falter and others prosper. See below an excerpt from a recent report in The Times (subscription required).

 M&CLogo

“In peer-to-peer lending – also known as debt crowdfunding – individuals lend money to other individuals or businesses at a fixed rate of interest. There is usually a formal structure to the debt repayment plan and a fixed return. Investors can often sell their debt to other investors and exit the plan. Neil Faulkner, the founder and managing director of 4thWay, a peer-to-peer analyst, says: ‘On average the market is in great shape; default rates, late payments and write-offs are very low. The interest rates on loans are gradually coming down, but on the whole investors are still getting some very good deals.’

“…According to 4thWay, the lowest-risk peer-to-peer lenders are Landbay, which specialises in residential buy-to-let secured mortgages, and Proplend, which specialises in commercial buy-to-let secured mortages.

“Although investment via peer-to-peer platforms is not covered by the Financial Services Compensation Scheme, it is regulated by the FCA. Compensation for defaulted loans is provided through reserve funds from some lenders.”

M&CLogo

Latest Offering & Lending Risk

We remain optimistic for the future of our part of P2P. See the latest loan offering on site, an A-rated loan from legal publishers, Lawpack.

Learn more about crowdfunded business lending here, at our Knowledge Hub. Remember, capital loaned is a risk. Please read the warnings on site. 



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