Post by nick on Aug 17, 2016 1:11:53 GMT
Aug 16, 2016 13:53:08 GMT bg said:
You have to initially deposit £50k on the platform, but you don't need to maintain this level of investment. When I first invested, I withdrew most of my funds so that I only had £5k on the platform whilst I got comfortable and only latter ramped up my investment level.
They generally have the problem of to much money on the platform and a friend of mine was recently turned away as they halted new members - I'm not sure if this is still the case. I eventually pulled all my funds out as the net returns after their 30% fee.
I have been investing a large sum since January (in a well diversified fashion). The main problem is low rates, low deployment of funds and defaults.
I am getting slightly over 8% on my deployed funds. That might be ok (although its lower than all my other p2p investments) but its difficult to get funds invested....generally you have 25% of your funds on the platform (often more) not invested and earning zero. This means your return on total funds is around 6%.
To make matter worse this return is before bad debts. Judging by the performance of my book I reckon i'm lucky to be making 1-2% taking all these factors into account. I have about the same amount in recovery or written off as I have made in interest (over 8 months). Hopefully some of this amount will be recovered (although reading the updates its not looking promising) but net net I reckon I'm looking at 2% max (and possibly zero).
I'm sticking with it for now (I like the website and the principle) but either the rates and deployment % need to go up and bad debts down (preferably all three) or I am out.SaveSave
In terms of bad debts, my experience was quite positive with a very high recovery rate for across the 8 or 9 invoices that defaulted during the 9-12 months I was invested.