stevio
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Post by stevio on Aug 12, 2015 18:45:52 GMT
I'm interested in secured lending sites, particularly those that lend on property, land or developments with rates of 10%+.
These are my personal opinions so far, you might well disagree!
I like SavingStream at 12%, particularly as
- Provision Fund
- Secondary Market
- you can transfer money in the day after investing
- low level of defaults
FundingSecure at 12%
- seems mainly a pawn broker
- seems to be high level of loans with 'issues' 35 of the 310 listed (11%) - puts me off investing
MoneyThing at 12%
- again seems mainly a pawn broker
- not been around very long
- will invest in small amount
BridgeCrowd
- like, but put off by £5000 min per deal
AssetzCapital
- 16 of 91 loans have 'issues' (18%) puts me off investing
Relendex
- want too much documentation - puts me off investing
Ablrate
- Upto 14%
- Relatively small amount loaned at 2.2m and fairly new at July 2014
- I don't understand aircraft loans
- Will invest small amount
Bondura
- want too much documentation - puts me off investing
Currently considering FundingKnight, CrowdProperty and EmoneyUnion but need to do some homework
Any thoughts and suggestions welcome!
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Post by Financial Thing on Aug 12, 2015 20:21:21 GMT
Seems to me that every platform has its pro's and cons, most of which you listed. This is only my opinion only of course as I have invested money in each of these:
Savings Stream:
At present you are lending to SS / Lendy rather than to the borrowers so lack of ring fencing / platform failure is a real concern. But for a 12% return, you have to accept a higher risk.
Funding Circle:
I've recently started to invest more on this site. The steady inflow of new loans and increasing loan book size shows the company is growing which would indicate long term longevity and therefore, I would consider FC high in the safety range, maybe as high as Ratesetter now. I like the fact they operate in the U.S. also. I was cautious against loaning to unsecured businesses at first, but now I understand how the system works, no issues in that respect. I also believe FC's loans are of better quality than some of the other B2B sites and I haven't had many default issues (unlike some other sites). Sometimes we become so wrapped up in money so it's nice to know you are helping the growth of UK small businesses here.
Rebuilding Society:
Lack of new loans makes me question how the company can sustain / grow, especially competing against FC, plus the website isn't great.
Assetz Capital:
Had a very bad experience here regarding AC allowing Secondary Loans to be sold that were in default, but not presenting the default information clearly. Essentially I bought defaulted loans without knowing it. I'd rather invest in with FC at this point.
Lending Crowd:
Invested a little here but saw little growth in loans so withdrew.
Property Moose:
I like the business model / staff and the risk seems acceptable. Not too many new deals but hoping for the best here but since it's relatively new, only time will tell.
Property Partner:
Low returns and relatively high fees
Funding Secure:
I stay away from the loans I don't understand such as art, wine, books etc. I imagine the defaults will be on these types of loans.
Moneything:
The level of communication here is second to none. Also withdrawals are lightning fast. These two pro's give me confidence that the business is being operated well and gives me confidence. The website is simple and easy to use. Hopefully a secondary market will be added soon. I have no issue in placing money here.
Mintos:
Offers secured loans with buy backs (car loans). Currency risk is an issue but the returns are favorable. The website is easy to use.
Bondora:
I invested a small amount but only invested 20% of the funds and withdrew them. I don't like the website plus the default rates are sky high.
Hope that helps
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markr
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Post by markr on Aug 12, 2015 23:10:58 GMT
I'm interested in secured lending sites, particularly those that lend on property, land or developments with rates of 10%+. Careful choice of property loans on Funding Circle can do this. There's some 10%+ property loans, but any 8% loan of 12 months or less with 2% cashback is effectively 10%+. There's also plenty of 8% loans on the secondary market with high discounts making them effectively high 9% or more. Advantages: - Good deal flow; even sticking strictly to 10%+ effective with cashback, there's more opportunities to lend than SS, FS and Ablrate and probably AC. - Cashback/discount paid immediately so can be re-invested straight away. - There's occasional excellent deals, e.g. one just ended was 10%+2%cb 8 months (effective 13% p.a.). Disadvantages: - Cashback is discretionary and FC may stop it at any time, then 10%+ deals will be quite scarce. - There is a secondary market but it isn't particularly liquid for property loans and has fees associated.
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Post by ablrateandy on Aug 13, 2015 7:37:40 GMT
Hello stevio . Aircraft loans are pretty straightforward to understand. Feel free to drop us a PM and happy to chat them through. It's basically a big flying bus with a fairly predictable future value and cash flows. |
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huxs
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Post by huxs on Aug 13, 2015 9:40:21 GMT
I am still fairly new to P2P but for what its worth here's what I have noticed over the past 10months or so:
I have money lent through FC, SS, MT, FS, unbolted, Ablrate and emoneyUnion (as well as RS but will not cover as not secured but is still considered the safest due to PF).
FC has a good steady stream of Property loans with a base rate of 8-10% but are currently topped up with Cash back of 1-2% but you do need to remember FC charge a 1% fee. So in general I am only investing here while waiting for other sites to have available loans and look to flip the loans to gain most from the cash back.
SS slow and steady loan delivery, so far very happy with how they handle problems with loans and extensions, but the best points of SS are the very simple website and the efficient SM. As a diversity freak I am in pretty much all of the SS loans but only to a maximum of 1% of my total P2P money. Also the upcoming change to a trust structure will provide added confidence in SS. Only downside becoming very popular and beating everyone else to the loan is getting harder and harder.
MT, Still a new business, limited Property, mostly Pawn with 1 big partner 'Cash Shop'. The communication and interaction is second to none would happily recommend. Saying that I have currently reached my limit on how much I want to lend in CS loans so probably going to be limiting my investing here until either more MT originated loans appear or new partners signed up.
FS, Increasing amount of property loans appearing and generally happy with FS, you have to remember that defaults are part of the course for Pawn loans the important thing is not how many defaults there are but how many actually result in loses. From what I have seen FS are so far doing a very good job of ensuring funds are recovered (both capital and interest) I am not saying there will not be loses but that is part of the risk and needs to be expected.
unbolted, is yet again pure pawn, currently pretty small volumes and while I like the site and how it works (very hands free) I am a little concerned that they will struggle to make a sufficient profit to survive long term.
emoneyUnion, yet again a small player, is currently mainly PG loans backs by a good sized PF only a couple of properties in the past month I think. It is another hands free site which is a big bonus but as with unbolted I do wonder if it is going to make enough money to keep going long term.
lastly ablrate, I have had big hopes for Ablrate, I put the communication and interaction up with MT and they do seem to be a company that genuinely wants to work with Investors (as can be seen by Andy's comments in this thread). The only problem has been deal volume (which they are promising movement on) this really needs to increase soon (but hopefully not for the next 2 week when I am on Holiday) as a lot of investors are losing patience and as I think has been mentioned many times one of the biggest risks to a platform is investor flight (and I am not talking about a big flying bus:-) .
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JamesFrance
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Port Grimaud 1974
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Post by JamesFrance on Aug 16, 2015 10:54:47 GMT
I was rather surprised to find Bondora mentioned in this thread which is about secured loans. Their loans are personal, at interest rates up to nearly 100% and many of their loans have a fearsome default rate with no evidence of successful collection. Great caution is needed in selecting loans, particularly when using their portfolio manager which does allow some choice of their new credit ratings but no choice of borrower country.
An alternative for euro investment would be the two platforms in Latvia, Mintos having loans secured against property which this topic is about and Twino where the interest rates are much lower than Bondora but there is a platform guarantee of repurchase with interest if they become overdue.
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stevio
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Post by stevio on Aug 21, 2015 12:27:05 GMT
Giving FundingSecure a try, approx 20% LTV 1st Charge property doesn't seem bad to dip my toe
Also trying CrowdProperty, very small and also have to submit documents (yawn) but can't seem to submit documents online at the moment
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Post by emoney on Sept 28, 2015 17:12:06 GMT
Thanks Stevio, if you would like any further information on our secured loans you can call us on 01625 750027. There's a very liquid secondary market in secured loan units 10% Yield available for purchase on the www.emoneyunion.com/lend/micro-loans/ |
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stevio
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Post by stevio on Sept 28, 2015 17:23:29 GMT
Thanks Stevio, if you would like any further information on our secured loans you can call us on 01625 750027. There's a very liquid secondary market in secured loan units 10% Yield available for purchase on the www.emoneyunion.com/lend/micro-loans/Thanks, do you have new loans as well and what sort of rates are generally on offer? Are they all secured loans or a mix?
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Post by emoney on Sept 28, 2015 18:08:20 GMT
Hi Stevio, loan types and yields vary, our secured loans are generally low loan to value and we are averaging a 10% yield payable to lenders. Our smaller Personal Guarantor loans and Unsecured loans normally close straight away with lenders pre-set bids, but if you are registered as a lender and wish to cherry pick your secured loans you can bid as and when they become live on the www.eMoneyUnion.com/marketplace/You will need to register as a lender to receive the new loan email notifications of a live secured loan. As far as I am aware, we are the only peer to peer platform lending against uk owner occupied residential properties. Our secured loan borrowers are predominantly asset rich with property as their main security but cash poor, or low credit score. You can find further indepth detail on the site. |
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bababill
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Post by bababill on Oct 4, 2015 1:48:26 GMT
Why not consider Proplend.. They offer 11% on a trance C loan.. (albeit at £5000 entry)..
But it is a true p2p unlike say Lendinvest where you are not actually loaning to 'person' but rather only paying for the right for a proportion of the receivables. In other words a syndicate.... or in other words you are really only lending to the platform.
I don't think this should be allowed to be called p2p as it is very very misleading... Somebody should write to the standards authority...
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stevio
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Post by stevio on Oct 4, 2015 10:07:23 GMT
Why not consider Proplend.. They offer 11% on a trance C loan.. (albeit at £5000 entry).. But it is a true p2p unlike say Lendinvest where you are not actually loaning to 'person' but rather only paying for the right for a proportion of the receivables. In other words a syndicate.... or in other words you are really only lending to the platform. I don't think this should be allowed to be called p2p as it is very very misleading... Somebody should write to the standards authority... Presuming a £5k per deal limit - for me this restriction would negatively effect my diversity, which was the reason in looking at other platforms - for big spenders this might not be an issue
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