Peer-to-peer (P2P) crowdfunding is entering the mainstream. We must have written that sentence in different ways more than a dozen times in the past few years. The force is undoubtedly with us, as we introduce individuals looking for a good return on capital to carefully vetted small companies seeking funds to grow. The evidence grows by the day.
The latest comes from research by investment platform, Moneywise. Almost half of Moneywise readers are already invested in P2P loans. The article (extended excerpt below) goes on to state:
“This is an increase from 39% of Moneywise users who said they used P2P lending in August 2016, and 33% who said the same when we asked in February 2016.
“The number of Moneywise users aware of P2P has also risen. Just 4% said they’d never heard of P2P lending in our most recent poll, compared to 6% who hadn’t heard of it last August, and 9% who hadn’t heard of it last February.
“P2P lending websites match savers with borrowers. Savers then effectively loan their money to borrowers, earning interest on top.
“The main attraction is that P2P lending typically offers higher interest rates than traditional savings accounts – you can also now do it via tax-efficient Innovative Finance Isas.
“However, unlike cash savings, which are generally protected up to £85,000 per financial institution by the Financial Services Compensation Scheme, P2P investments aren’t protected if something goes wrong – unless you were mis-sold by an adviser and the sale meets a number of other criteria.”
Our latest P2P offers
We currently have two P2P loan offers on site – both fixed at 8 per cent yield. Webuyanyhome is A+ and property-backed. Mar-Key is A-rated. Further detail is available to registered Money&Co. users. Both loans can be held, tax-free, in an Innovative Finance Individual Savings Account, or Innovative Finance ISA.
If you haven’t made a loan via Money&Co. before, please read the risk warnings and the FAQ section. You may also wish to consult a financial adviser before making an investment.