Lending on FC (end of year review) | P2P Independent Forum

ratrace

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Lending on FC (end of year review) Dec 27, 2015 13:36:44 GMT

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Post by ratrace on Dec 27, 2015 13:36:44 GMT

After around 11 months since l have started lending on FC, am happy to say its been a very good year.
When l set out l set myself a target return of between 11.5%-12.5% by mostly lending in the high risk bands. Now as the year draws to a close l am happy to be within my target which has been hit with a mix of lending in mostly the C,D,E bands on both the PM and SM. lts given to me hope that even as just a minimum wage factory worker. You can still beat the odds if they set out with a plan and then use the experienced gained from lending to help to improve it. Am looking forward to 2016, and here's hoping that 2015 has also been a rewarding year of lending on FC for you as well.

Last Edit: Dec 27, 2015 16:38:59 GMT by ratrace

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Lending on FC (end of year review) Dec 28, 2015 9:25:34 GMT

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Post by Deleted on Dec 28, 2015 9:25:34 GMT

Well done!

For me in the year 2015 the key move was the progressive shift from SME (now too risky) to property loans.
The platform has shown has slight improvement on recoveries, which is welcome, but still totally insufficient to reach my goal (which is around 10%, after defaults).
High hopes that the new strategy will pay higher dividends in 2016...

ratrace

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Lending on FC (end of year review) Dec 28, 2015 16:29:15 GMT

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Post by ratrace on Dec 28, 2015 16:29:15 GMT

l also have some property loans but my main interest is SME. Because l see FC as a easy and more safer way to tap into the high growth that "Micro caps" can offer then investing on AIM is.
All my lower risk lending l do at RS, where at FC is where l do all my higher risk lending. Now they have fixed rates at FC l feel that lending in the A and B bands has become a bit of a waste of time for me. So l will remain with just lending in the C,D,E, bands.
As l way to reduce my risk l do not hold the loans for the full term. For new loans l buy l hold for just 2-4 months depending on the risk band, then on the SM as a general rule l only invest in loans that have made at least 21 repayments. Following these guide lines has allowed me to currently reach returns of GY 13% AR 12.1% EFDR 7.3% so am very happy with the way its going so far.

Last Edit: Dec 28, 2015 16:36:19 GMT by ratrace

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Lending on FC (end of year review) Dec 28, 2015 21:27:23 GMT

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Post by GSV3MIaC on Dec 28, 2015 21:27:23 GMT

That's a pretty good real return so far .. well done. Of course =lending= (at fixed rates) to small companies is never going to be as potentially rewarding (nor do you get the favourable tax treatments) as =equity investments= in them, but the risk is arguably lower.

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ratrace

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Lending on FC (end of year review) Dec 28, 2015 23:13:20 GMT

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Post by ratrace on Dec 28, 2015 23:13:20 GMT

Thanks
l do invest in the equity markets, but now its only through investment trusts. lts with P2P lending where l now take a more active "hands on" approach to investing.
Yes the current tax treatment is a down side to P2P lending, but much of that should be sorted when at long last we can put our P2P lending into a ISA.

Last Edit: Dec 28, 2015 23:27:55 GMT by ratrace