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Friday, 15 January 2016

UK Peer to Peer Lending: Saving Stream – ‘Still Very liquid and Continuing to Deliver!’

What it Says on the Tin!

Saving Stream remains my favourite UK Peer to Peer Lending (PTPL) platform.  It reminds me of the product Ronseal with the simple slogan ‘Does what it says on the tin’.  Please note I have no financial interest in Saving Stream other than being a satisfied customer.

Saving Stream continue to deliver high value loans while keeping their platform simple.  They offer 12% interest across every loan with no fees whatsoever.  Also, no lender money has yet been lost due to defaults. 

Saving Stream (SS) don’t indulge it a lot of chat or debate with users but do appear to listen.  Each time there has been reasonable complaint, for example, via the P2P Independent Forum, they have acted in very short time period to modify their platform to fix the problem.

Pre-Funding Brilliance 

As a result they are the only PtPL platform to offer pre-funding; an arrangement where you can pre-bid for pipeline loans and then settle up AFTER the bid is accepted.  You can also, at the same time, buy or sell on the secondary market and again settle up the balance owed at a later date (ideally within 24 hours).

Bad Robots

More recently there was annoyance from SS users about numerous ‘bots’ (the actual number was never agreed!) that snaffled up every snippet of cash on the secondary market in the blink of a human eye, hence excluding flesh and blood buyers from competing.

The use of PtP robots, software programs that monitor a Peer to Peer Platform and operate on behalf of their human owner, are not limited to Saving Stream alone.  Funding Circle was awash with them, particularly in the days when the platform had variable rate loans and you could bid for your preferred rate.

Anyway, Saving Stream have now taken measures to greatly restrict the use of bots including the use of the ‘Captcha’ (software that differentiates humans from robots).

First Class Liquidity

The problem currently facing all platforms is that the increasing popularity of PtPL means there simply aren't enough big loans to go round, particularly in the quiet period after Christmas.  For this reason Saving Stream hardly ever have anything available to buy on the secondary market.  However, this means that, in the current climate, you can cash in all your loans in a period of a few minutes, ie total liquidity.  Not bad for 12% interest! 

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