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Post by dan808 on May 6, 2015 23:07:36 GMT
Hi,
I'm new to the site (though I've been lurking for a short while), and was wondering if there are any P2P lending sites/platforms that would allow me to borrow against my portfolio. If so, which sites are currently allowing this and at what interest rates? If not, can you please explain why these sites don't allow lending against a portfolio? I'm looking forward to your answers as well as participating and learning from this forum!
Thank you in advance,
Dan
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am
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Post by am on May 7, 2015 7:29:19 GMT
I haven't heard of any doing so.
If they were to lend against your portfolio they would have to have capital to lend you.
Some P2P companies are using P2P to effectively increase the capital in their business. They don't want to give it back to you.
Other P2P companies are nearer pure intermediaries. They don't have capital to lend to you - they're spending their capital on marketing, IT, etc.
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bigfoot12
Member of DD Central
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Post by bigfoot12 on May 7, 2015 7:42:07 GMT
As am says the P2P companies would need capital to do so if they lent you money, otherwise you would be borrowing from other lenders. I think that there was some discussion on Thin Cats about borrowing from other lenders. I don't think such a move is imminent. I don't think that it would be very popular. For most people the rate you would have to pay to borrow would be quite high and for individuals you wouldn't be able to offset it against the tax you would have to pay on your portfolio. (Quite a few of the lenders at Thin Cats use companies so it would be less of a problem for them.) An individual would almost certainly be better off selling (on those platform that allow such activity for a reasonable fee) your portfolio, or borrowing elsewhere. |
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Post by dan808 on May 9, 2015 1:30:27 GMT
Thank you so much for the responses. I have contacted a number of P2P lending sites, and only a small number are willing to allow borrowing against a portfolio or to open a margin account. From your responses, I definitely see why the number is so small, its not really in their best interest to loan out the capital they could be using to boost their business.
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Post by norfolkblue on May 12, 2015 10:42:21 GMT
It's certainly an interesting concept.
I'd say the more fundamental reason this is unlikely to be common is that p2p is more of an investment platform than a trading platform, and leverage is more suited to those at the trading end of the spectrum.
p2p I think is much more for investors to get a better return on their own capital (that's certainly the case for me, although maybe not all here), rather than professional traders looking to turn shorter term profits. I can certainly how, with auction based models like FC though that this sort of thing could emerge though.
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TitoPuente
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Post by TitoPuente on May 12, 2015 13:53:56 GMT
Thank you so much for the responses. I have contacted a number of P2P lending sites, and only a small number are willing to allow borrowing against a portfolio or to open a margin account. From your responses, I definitely see why the number is so small, its not really in their best interest to loan out the capital they could be using to boost their business. Would you mind sharing with us who are the P2P platforms that would allow a margin account and/or would lend against a portfolio?
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gc
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Post by gc on May 21, 2015 15:36:49 GMT
Thank you so much for the responses. I have contacted a number of P2P lending sites, and only a small number are willing to allow borrowing against a portfolio or to open a margin account. From your responses, I definitely see why the number is so small, its not really in their best interest to loan out the capital they could be using to boost their business. Would you mind sharing with us who are the P2P platforms that would allow a margin account and/or would lend against a portfolio? Also would be interested in knowing which platforms. Personally I couldn't see many (if any) being up for this as it is an even higher risk situation than normal and if they did then I would imagine their APR to be pretty darned high.
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