New loans -Tyne Lifeboat & PBL6

There appears to be four property type loans in the pipe now but looks like the boat has sunk!

I'll be very interested to see how savingstream respond to your points.  As AC themselves are often at pains to point out, the business model here is completely different.  At AC you need all the information you request because you are personally taking on the risk of late payment / non payment and need to to all the DD.  Here, it is Lendy who are taking on all that risk, and paying us a fixed rate of interest in return, regardless of what that level of risk is.  The borrowers here are paying really quite high rates, and those rates will undoubtedly be varied according to the risk level.  Ignoring the fact that riskier loans might impact upon the viability of Lendy as a business (and I know we shouldn't necessarily ignore that), the risk level to ourselves of each and every loan is the same - it is the risk that SS don't pay us.  Given that they are themselves receiving considerably higher rates from the borrowers, they by now should have a significant float from which to continue paying us in the event of a number of delinquent loans.

My personal view (and I realise I'm possibly in a minority) is that one of the main things I like about SS is the total simplicity of it, which includes me not having to worry about all the individual loan details.  I know exactly what I'm going to get repaid, and so far it does exactly what it says on the tin.  Obviously the jury's still out on whether it works longer term, because this is still all very new, and that is the risky part about it.

I do also like dabbling around in AC with their higher rate loans, but the fact remains I have a lot less invested with them because of the fact I mentioned above, that I'm taking on much of the risk there, but also they've made it jolly hard work for me to get my money invested.  It's essential to diversify over there, but much less important over here.  I don't need all of my money to be invested simply, and much of it is invested in very un-simple places, but I do value the ability to have a fair chunk of it being simple to manage, but still with a good (and known) return, which is what I feel I get here at the moment, and long may it continue.

Ramblin rose, perhaps I should have made it clear that I don't mind sophistication but to me time is very much money. Like you my investments are very diversified and only a small proportion by value is in P2P but those other investments in property, stock and shares and direct investment in business are time economic and cost me perhaps an hour per day to manage. Whilst P2P seems to require a lot more of my time to manage well. I must admit it has taken awhile to get used to the changes that have been occurring on the AC thread since April and frankly if managing my investments in AC the "new" system then I will move elsewhere. I like SS but over the last month it has proven hard to get my money invested even though at this stage I have only been testing the water. For SS to work for me I would like to see more boats and not so many second mortgages.

One or 2 people mentioning diversification on here. This is something that troubles me about ss. I'm not sure investing in multiple loans does lower risk. As mentioned above, the 12% is paid irrespective. So either ss make money and can cover the 12% or they don't and they can't. How does having my money spread across multiple loans lower my risk?

I can see that if ss ended up insolvent, then investors in the loan that pushed them over the brink might be pushed to the back of the creditors queue, or alternatively, the liquidators might just treat all creditors equally. In law, if ss are guaranteeing the return, are we lending our money to ss or to the end borrower? Wouldn't it all just make more sense if ss paid 12%, and then spread each investors money across a range of loans, rather than this game of every investor trying to pick up loans that are filled in minutes?

A bit off theme I know but you might like to know that Chris of AC stated in a reply to me recently on the AC thread  that AC viewed SS as a pawnbroker not strictly P2P. Now if that is the case would SS need a different licence from the FCA to conduct pawn broking rather than P2P or is P2P just a branch of pawn broking?