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Post by easteregg on Jun 19, 2017 12:07:19 GMT
Headline figures and net returns do not correlate. The P2P money website launched to attempt to highlight this, as one platform had the highest headline figures and the lowest return figures (due to the large bad debts). Platforms such as Ratesetter show the headline figure as the net return, where platforms such as Funding Circle are before fees and estimated losses.
www.p2pmoney.co.uk/compare/lend.htm
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Jun 19, 2017 12:28:03 GMT
Headline figures and net returns do not correlate. The P2P money website launched to attempt to highlight this, as one platform had the highest headline figures and the lowest return figures (due to the large bad debts). Platforms such as Ratesetter show the headline figure as the net return, where platforms such as Funding Circle are before fees and estimated losses.
www.p2pmoney.co.uk/compare/lend.htm This may be true, but I am more interested in lenders' perceptions. So far the poll indicates (on a small sample) that lenders expect a better net return from higher headline rates. If this ultimately proves not to be the case, over a full business cycle, then it may be an unhappy experience for many.
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Post by GSV3MIaC on Jun 19, 2017 14:33:22 GMT
The comparison table is rather sparse (completely lacks several sites, and lacks actual numbers on many of the others).
Personally I find it really hard to pick sure fire winners, but a bit easier to pick clear duds .. having eliminated duds, then the sanest strategy seems to be to go for the highest AERs (discounting the fees) on the assumption 'all non-duds are created equal' (or at least that I am unable to separate them). Of course on some sites you have no idea/control over where the money is going anyway (pooled lending like RS or ZOPA), so you are backing 'the average' and hoping it is at least as good as you'd arrive at from weeding the field yourself ... and you're getting a (small) fraction of the available AER.
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littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,045
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Post by littleoldlady on Jun 19, 2017 14:55:31 GMT
The comparison table is rather sparse (completely lacks several sites, and lacks actual numbers on many of the others). Personally I find it really hard to pick sure fire winners, but a bit easier to pick clear duds .. having eliminated duds, then the sanest strategy seems to be to go for the highest AERs (discounting the fees) on the assumption 'all non-duds are created equal' (or at least that I am unable to separate them). Of course on some sites you have no idea/control over where the money is going anyway (pooled lending like RS or ZOPA), so you are backing 'the average' and hoping it is at least as good as you'd arrive at from weeding the field yourself ... and you're getting a (small) fraction of the available AER. Sadly I seem to have an aptitude for picking duds. 
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Post by oldnick on Jun 19, 2017 17:29:51 GMT
The comparison table is rather sparse (completely lacks several sites, and lacks actual numbers on many of the others). Personally I find it really hard to pick sure fire winners, but a bit easier to pick clear duds .. having eliminated duds, then the sanest strategy seems to be to go for the highest AERs (discounting the fees) on the assumption 'all non-duds are created equal' (or at least that I am unable to separate them). Of course on some sites you have no idea/control over where the money is going anyway (pooled lending like RS or ZOPA), so you are backing 'the average' and hoping it is at least as good as you'd arrive at from weeding the field yourself ... and you're getting a (small) fraction of the available AER. Sadly I seem to have an aptitude for picking duds. Would it be too cheeky to ask that you maintain a public list of your ongoing 'favourites' for us? 
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Post by easteregg on Jun 19, 2017 18:17:36 GMT
The comparison table is rather sparse (completely lacks several sites, and lacks actual numbers on many of the others). The data is real-time and seperated by loan term. You are correct that there are a number of sites that do not appear within the tables. This is because those sites do not have a mechanism for publishing rates. Others are not included as they do not publish estimates for bad debt, so the headline figure is almost meaningless.
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