ribs
Probably not James Marshall
Posts: 148 
Likes: 151
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Post by ribs on Dec 15, 2013 12:32:05 GMT
Hi,
I've been thinking today (a dangerous, crazy thing to do).
And I'm thinking there are only two p2p lenders that offer any kind of fund to "bail you out" should someone default; Zopa and ratesetter.
Currently preferring ratesetter, as the rate is higher, and have already "dipped the toe", so to speak, and am liking the experience.
So what about Zopa, why would anyone pick them over ratesetter?
Are there any others I've missed that have this kind of fund? I really don't want to risk my money too much, and the safety net of the funds for both of these companies is very attractive to me (despite what Zopa users are saying on the forums).
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Post by mrclondon on Dec 15, 2013 12:51:38 GMT
One that hasn't been discussed on here as yet is eMoneyUnion who have an "eProvision fund". But they are very recent startup and last time I looked at their website there was no indication of how many loans they have written so far. Rephrasing your question to read "Other than Zopa/Ratesetter are there any other P2P platforms offering average rates as low as 4 to 5% ?" the answer is no. I think the majority average 9-12% with odd loans a bit higher / lower than these figures. Edited to add: Its also worth reading the page on the Assetz website Provision Fund vs Security .
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ribs
Probably not James Marshall
Posts: 148
Likes: 151
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Post by ribs on Dec 15, 2013 15:17:02 GMT
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andy2001
Member of DD Central
Posts: 361
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Post by andy2001 on Dec 15, 2013 17:56:35 GMT
Here's another new player. This one has secured loans with a provision fund. Don't now much about them just something I came across on p2pmoney www.wellesley.co.uk/ |
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Post by wellesleyco on Dec 17, 2013 12:31:21 GMT
Hi Andy, Thank you for your mention of us on this Forum. We do have a Provision Fund which we have kick-started with £100,000 and this will increase inline with our loan volume. We provide full details of our loan book at the following page. Lending Statistics. As you will see we have funded close to £3m of loans and all of these are secured against property. Current Loan-to-Value 63%. We are different from the majority of Peer-to-peer platforms because we have 'Skin in the game'. The Shareholders of Wellesley & Co have provided £5m of capital so that the company can issue loans initially in its own name and then allows its platform lenders to refinance those loans at a fixed rate. There are a number of benefits that are created as a by product of this model: - Our credit committee that approves loans makes every lending decision in the knowledge that the company has 100% exposure to the borrower in the first instance.
- We are able to issue loans promptly to the most creditworthy borrowers who have a number of sources they could borrow from and who would not normally be prepared to wait for a traditional peer-to-peer auction to complete.
- We then assign portions of these loans to our platform users which allows them to earn interest as soon as they commit their money for a lending term.
- We do not cherry-pick which loans we wish to keep, we retain an even exposure to every loan that we make. Meaning we have a vested interest in every lending decision we make.
- All lending is secured on property and an independent security trustee holds the security. In the event of a default we have made sure that we only receive our money back once all of our platform users have received their interest and capital in full.
We have created this business model specifically to provide our customers with reassurance over the safety of their investment capital.
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Post by batchoy on Dec 17, 2013 12:44:32 GMT
Hi Andy, Thank you for your mention of us on this Forum. We do have a Provision Fund which we have kick-started with £100,000 and this will increase inline with our loan volume. We provide full details of our loan book at the following page. Lending Statistics. As you will see we have funded close to £3m of loans and all of these are secured against property. Current Loan-to-Value 63%. We are different from the majority of Peer-to-peer platforms because we have 'Skin in the game'. The Shareholders of Wellesley & Co have provided £5m of capital so that the company can issue loans initially in its own name and then allows its platform lenders to refinance those loans at a fixed rate. There are a number of benefits that are created as a by product of this model: - Our credit committee that approves loans makes every lending decision in the knowledge that the company has 100% exposure to the borrower in the first instance.
- We are able to issue loans promptly to the most creditworthy borrowers who have a number of sources they could borrow from and who would not normally be prepared to wait for a traditional peer-to-peer auction to complete.
- We then assign portions of these loans to our platform users which allows them to earn interest as soon as they commit their money for a lending term.
- We do not cherry-pick which loans we wish to keep, we retain an even exposure to every loan that we make. Meaning we have a vested interest in every lending decision we make.
- All lending is secured on property and an independent security trustee holds the security. In the event of a default we have made sure that we only receive our money back once all of our platform users have received their interest and capital in full.
We have created this business model specifically to provide our customers with reassurance over the safety of their investment capital. So far I like what I'm reading, could the Admin set up a board for Wellesley and give wellesleyco representative status subject whatever checks are done.
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Post by elljay on Dec 17, 2013 19:03:01 GMT
'tis done.  Welcome on board! |
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james
Posts: 2,205
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Post by james on Dec 18, 2013 1:20:08 GMT
There's no protection fund but isePankur reports " 2010 and 2011 cohorts have recoveries of 80-110%". Above 100% because of penalty charges. Combine that with readily achievable interest rates well over 20% and it's interesting. You can also sell late loans before they reach the default threshold of being 60 days late. It's quite ironic that isePankur might end up making lenders more money by not having a protection fund than it would by having one. IsePankur uses Euros in a foreign country and hence requiring a tax return if you use it, because that's mandatory if you receive any foreign interest. And naturally you get the exchange rate risk and costs as well. |
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