We Lend Us – An Introduction

Introduction

We Lend Us specialises in short term, unsecured personal loans. Some may call it a payday loan company but unfortunately these days that term is so toxic it might not be helpful describing them in that way (but thats essentially what they do). The difference with We Lend Us is they utilise P2P investment and provide a potential return.

We Lend Us are fully regulated by the FCA through parent company PTP Funding Limited. We Lend Us only launched at the end of 2017 so its a very new company. They performed a number of successful Seeders campaigns pre-launch to fund the business venture. They are also a member of Level 39, Europes biggest Fintech accelerator. Unfortunately We Lend Us are so new there are no full year financials as of yet. Advertised rates of return vary from 5-15% based on risk appetite. Loans are borrowed to £500 maximum, with a repayment time of 1-3 months, however interest can be as high as 250% APR. This may be a lower rate than many competitors in the same space, but it’s still a very high cost of borrowing.

We Lend Us works in two stages, firstly you have to set how you want your deposit to be lent out. Clicking the modify button shown on the page below will open the ‘Investment Criteria’ window. The Auto-Mach setting will allow you to choose loans between 5-15% return, the higher the return the higher the risk. The Auto-Diversify setting allows you to stipulate the maximum (minimum being £10) you want to invest in a single loan, forcing funds to be diversified across multiple loans, potentially reducing risk of losses. The third setting is the Provision Fund setting, allowing you to define your tolerance of a late payment, from 7-30 days before We Lend Us step in and utilise the provision fund to reimburse the invested principle. Any expected interest is defaulted in this instance. (see below for more detail on the provision fund).

You can also assign any unassigned moneys to an investment fund. One quirk with We Lend Us is you can actually set up multiple funds based on different criteria with in the same account.  So once you have all the settings decided you click save and move on to the second part of the process, essentially sitting back and waiting for your funds to be assigned and start earning you a return. If you make a further deposit in to you account you will have to manually assign it to which ever fund and criteria you want to lend through.

Manage Investments page

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We Lend Us investment page 

The main page for We Lend Us is the Investment page and it’s as basic as it gets –

Balance – shows the total amount of monies on the We Lend Us Platform.

Total Earned – shows interest earned from successfully resolved loans.

Queued – any monies assigned to a fund but awaiting a loan.

Lent Out – shows the total of funds currently on loan.

Investment Portfolio –  summarises the chosen settings for the investment fund (the settings displayed on this example should not be viewed as a personal recommendation of what you should set your fund to for desired results. It is up to you to play around with settings and find what works for you).

Withdrawal History – shows any withdrawals made from the platform.

The Provision Fund

We Lend Us do operate a provision fund which as explained earlier with reimburse the invested principle when a loan passes your defined late payment tolerance period. Now in normal conditions any interest on that loan part would not be reimbursed to the lender, however We Lend Us are currently using a short term month by month rolling promotion while in soft launch which does in fact reimburse the otherwise forfeited interest. But it should be assumed that this will not last for ever. So the example shown is a £100 deposit but the further £1.37 is actually the reimbursement via the promotion which is why its not shown as earnings (this is highlighted on a further page on the platform, but the rest of the information is identical to what is show in the example).

 

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