Moneything – 12 Month Results

12 Month Results

The first year results of investing through the Moneything platform are as follows –

Expected ROI (Annualised) 12.00%
Actual ROI (Annualised) 10.38%

The ‘Expected ROI’ figure is taken from an approximate average across all my loan holdings stated return on the Moneything platform. The ‘Actual ROI’ figure is sufficiently close to expectation in my opinion. In fact Moneything was one of my standout performers in 2018. 18.00% of the loans I’m holding have fallen in to the category ‘Non performing’ in this period, this means they are currently not paying interest and could eventually fall into full default if they continue to not perform. 18.00% is higher than an industry expectation of 10.00% but I have relatively few loans in comparison to the entire loan book.

There has only really been one substantial issue with my experience with the Moneything platform in this period, and that’s deal flow. A single substantial loan was launched on the platform using a innovative offer, it failed to fill, was pulled and relaunched using a different offer. It did eventually fill but both attempts took up several months and Moneything tend to focus on one deal at a time. There were a couple of other loans of a different asset security type but these were relatively small and filled very quickly (hours not days).

Company Information

By the end of this period company stats were £91 million in originated loans. £22.6 million live loan book and 5197 active lenders. There has been a lot talk around Moneything in recent months about the potential introduction of discounted/premium secondary market. It’s an interesting idea that some platforms have already delivered very well while some platforms have attempted it with less successful results. It’s an innovation that generally increases liquidity but depending on how it’s presented it can catch out less experienced lenders who pick up dumped loans that turn out to be much higher risk than they understand. There has been no confirmation to date on this innovation or indeed a proposed introduction date.

Conclusion

I’m happy enough with Moneything to keep in my portfolio for the next period. As stated deal flow has not been great, in fact I actually withdrew idle funds from the platform as I had nowhere to put them without going beyond my comfortable loan limit, they were effectively dead funds/causing cash drag. It’s frustrating because this portfolio is in stage one growth, meaning I want to be depositing not withdrawing. I will look to re-deposit on the announcement of new offerings.

Money Thing – 6 Month Results

6 Month Results

The first 6 months results of investing through the Money Thing platform are as follows –

Expected ROI 12.00%
Actual ROI 8.22%

I have calculated the ‘Expected ROI’ for this platform as an average between the stated rate of return, ’10-18%’ average being 14% and I have factored in the frequency of these returns level offerings, there is currently (1/09/2018) only one  18% offering out of 100 live loans so I have revised the average down to 12% accordingly.

As you can see the ‘Actual ROI’ is currently 8.22%. One of my loan holdings became ‘Non Performing’ in this period meaning the loan is either not paying interest as expected or at all . Cash drag is a factor too, a minimum of £1 buy in’s means you pretty much always have residual pennies on account, coupled with a relatively slow new loan generation (currently one about every 10 days), I’m actually quite happy with current ROI. There have been no other major platform developments to report at this time.

Conclusion

I have no reason to consider dropping Money Thing from my portfolio at this time, in fact based on ROI it’s currently one of my strongest performers. Loan generation could be quicker but at least they are assessing loan applications with adequate time and thoroughness.

MoneyThing – An Introduction

Introduction

Moneything is a family owned , self funded, P2P business launched in 2015. Moneything are fully authorised under the FCA as a P2P lender. They provide a mix of loans across multiple sectors, but all loans are asset backed. Moneything offer risk based returns from 10-18% per annum. There is a £1 minimum deposit/minimum investment on the platform, all investments must be made in whole pounds. Moneything also operates a secondary market place should investors wish to exit a loan early, subject to buying demand. There are no charges for selling or buying on the secondary market.

Moneything has seen significant and sustained, year on year growth since its launch. Cumulative lending for 2016 was £99M, 2017 £269M, growth in every quarter. Interest earned has increased £141,874 in Q1 2016 to £886,005 in Q4 2017, an increase in all but one quarter. Moneything experienced it’s first defaults in 2017 (7.7% of total loan value) and is expecting further defaults in 2018. Defaults are part of P2P lending and should be expected in small amounts on any platform.

Moneything Loan Page

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Moneything loan page

Asset Details – a brief description of loan on offer.

Loan Value – total value of the loan being requested.

Asset Value – total value of the asset being loaned against.

LTV – loan to value of the asset being loan against.

Rate – the annualised investor return being offered on the loan.

Bidding Start – the date the loan opens for bids.

End Date – the date the loan term is due to end.

Available – the amount of remaining loan available for investment. If it’s highlighted in yellow there is an amount available on the primary market, if it’s highlighted in green, there is an amount available on the secondary market place.

Invested – is the current amount you have invested it that loan.

Drawdown – the loan has been drawn down and is being utilised by the borrower.