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Post by chrisuk on Feb 22, 2016 14:10:01 GMT
A very basic thing to check is what you are lending against. In some big platforms (say Funding Circle) many loans are towards SMEs which 'promise' to give the money back at monthly intervals (and also add a personal guarantee). In most cases of difficulties those promises and guarantees are worth nothing. My recovery rates on that platforms are pathetic (less than 15%). So my suggestion is to stick with 'secured' loans, i.e. loans where you get a security to loan against (for example a house or a land, as done in SS). And if things go bad with the borrower, the platform has the option to sell the security to recover as much as possible (in the case of the only SS default, 100% was recovered). I agree. I have not been impressed with Funding Circle. My returns so far: Earnings £94.95 Fees £9.32 Losses £71.45 Net earnings £14.18 I have achieved these stunning figures using Funding Circle's 'Autobid'. I have now turned it off and I am gradually withdrawing my money, and they had the cheek to ask me why?!!
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adrianc
Member of DD Central
Posts: 10,006 
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Post by adrianc on Feb 22, 2016 14:24:06 GMT
I have not been impressed with Funding Circle. My returns so far: Earnings £94.95 Fees £9.32 Losses £71.45 Net earnings £14.18 I have achieved these stunning figures using Funding Circle's 'Autobid'. <tongue only lightly in cheek> Self-inflicted, then...? My own net earnings on FC are a bit over 76% of the headline earnings figure - losses and fees are about neck-and-neck. But, then, I've not let autobodge anywhere near a single shiny shirt button. But that's for another corner of the forum.
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Post by chrisuk on Feb 23, 2016 11:00:39 GMT
I used 'Autobid' because I was a 'newbie' and thought it would be helpful. Oh well, another lesson learnt!  Chris |
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Post by GSV3MIaC on Feb 23, 2016 13:10:50 GMT
It is very helpful - it helps fill unpopular loans, and it buys up all the dented parts that people put up for sale at par.
Oh, you meant 'useful to YOU'? No, sorry, not that sort of useful.
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Post by sunspot on Feb 23, 2016 21:53:52 GMT
I have a grand with Funding Circle, and another with Rate Setter, but I'm shortly due to receive a £50 intro for the first and £40 for the second - and I can cash that one in with 30 days notice.
So, even if I only break even with Funding Circle, I'll still see a 5% ROI, which is better than most. With Rate Setter, if I cash in at 4 months, my annualised rate will be upwards of 20%.
Incidentally, I started with autobid off, but quickly lost the will to live. I don't begrudge the effort when I'm investing folding money, but £20 a pop at Funding Circle is not a valuable use of my time.
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