It’s Christmas Eve so
I thought I’d do a quick update on which platforms my Peer to Peer Lending money
currently resides.
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| Platform Pie Chart Based on Investment |
About a year ago, over
50% of my money was in the Ratesetter 5 year market. I’m now pulling my money out as quickly as I
can simply because the interest is relatively low (around 6%). Unfortunately, Ratesetter have penalties for
early withdrawal and no secondary market.
The Funding Circle (FC) proportion has also reduced because they have switched to fixed interest rates
so you can no longer bid for a variable rate.
Generally the return on Funding Circle is now around 7% to 8%. Another disadvantage of FC is that loans are
unsecured and any defaults lower the actual return.
So which platforms
have I increased my proportional share? Well, there are three platforms that I now favour and they are all asset-based. These are Money Thing, Funding Secure and
Saving Stream. Asset-based means the
loan is secured against the asset. The
usual asset is property or land but can also be works of art, jewellery, super
cars, boats, industrial machinery and shipping containers.
Saving Stream
Saving Stream is currently
my number 1 choice with great track record (no losses so far) and typically one
year loans at an interest of 12% with zero fees.
Saving Stream are continually refine their offering and are the only platform to offer Pre-Funding. This allows the lender to specify how much
they wish to lend on future ‘pipeline’ loans.
In other words you can bid or buy on the secondary market without the
need to pay money into the platform up front.
However, once transactions are completed you are asked to settle up
within 24 hours.
Anyway, here is wishing you
all a very happy and peaceful Christmas and a prosperous New Year.
Finally, if you haven't tried it, then why not consider including Peer to Peer Lending in your 2016 portfolio? Trust me, Peer to Peer Lending is a
great way to improve your financial prospects!
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