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Post by coolbeans on Aug 7, 2017 18:16:06 GMT
Thanks for your replies. I do understand all P2P is high risk. What i was trying to say is regarding picking and choosing loans how do people tend to assess risk. What are the least probable loans to default. What are the key things to look out for? Thanks
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Post by coolbeans on Aug 7, 2017 18:36:52 GMT
Thanks, do you have a link to the video guide, i can't seem to find it :/ I don't particularly have a time frame. I do not mind long term investments at all. I would like to be at the lower risk end of the scale... So i am looking for lower risk p2p investments. I currently have signed up to Moneything, Abirate and Collateral. Just trying to get the jist of things at the moment before making any investments. What sort of investments would be classed as lower risk in p2p. Is there a guide for the secondary market as i am finding it quite complicated starting out? Thanks For ablrate? Yes in the FAQ there is a video guide.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 7, 2017 19:23:49 GMT
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david42
Member of DD Central
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Post by david42 on Aug 8, 2017 8:33:19 GMT
Thanks for your replies. I do understand all P2P is high risk. What i was trying to say is regarding picking and choosing loans how do people tend to assess risk. What are the least probable loans to default. What are the key things to look out for? Thanks Simple question, but there is no simple answer. The whole of the P2Pindependent forum exists to try to answer this one question. Some of the things I look for are: Loan quality- what information is provided for each loan? - does the borrower's plan make sense? Is the borrower likely to be able to pay back the loan? - what is the security? How credible is the valuation of the security? Platform quality- Does the platform share loan details (eg Lendy) or do we need to trust the platform to assess the loans (eg Ratesetter) - Is the platform track record long enough and consistent enough to demonstrate default handling and provide meaningful recovery statistics (Eg Funding Circle) - What does the track record of existing loans tell me about the quality of the platform selection of loans, administration of charges, management and reporting of existing loans, management of troubled loans.
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Post by explorep2p on Aug 8, 2017 9:11:32 GMT
I don't particularly have a time frame. I do not mind long term investments at all. I would like to be at the lower risk end of the scale... So i am looking for lower risk p2p investments. I currently have signed up to Moneything, Abirate and Collateral. Just trying to get the jist of things at the moment before making any investments. What sort of investments would be classed as lower risk in p2p. Is there a guide for the secondary market as i am finding it quite complicated starting out? Thanks Hi Coolbeans We recently created a list of the lower risk UK providers for people asking the same question. Some things to keep in mind - if you have a longer term view, it may make sense to combine some of the high return platforms (such as the ones you have listed like ABLrate), with investments in some of the lower return, but lower risk ones. May be worth looking at Kuflink - their rates are in the middle of the range, and their structure reduces the risk considerably (they co-invest and their investment suffers any losses first). Octopus choice has a similar structure. Secondary markets can be good and bad for new P2P investors. Having access to payment history of a borrower is a very good thing. However some of the more experienced investors may be selling because they think there is a likelihood that a loan may default or for other reasons that may not make it a great investment. You also need to consider how much time you are willing to devote to your investments. Some products like Ratesetter take up almost no time. For other platforms like Moneything it is very competitive to purchase loans, and the quality of loans varies a lot, so it is very time intensive.
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Post by coolbeans on Aug 8, 2017 11:47:52 GMT
Thank you everyone, you have all been such a great help. I do really appreciate all your advice.
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