Lending Works – 12 Month Results

12 Month Results

The first full year of lending through the Lending Works platform are as follows –

Expected ROI 6.00%
Actual ROI 5.36%

The ‘Expected ROI’ for Lending Works is taken from the stated return for a 5 year deposit, which has remained at 6.00% for this period. The ‘Actual ROI’ for these results has seen a slight upward revision, from 5.24% ROI to 5.36% ROI. This upward trend was expected as the 5 year rate was increased in month 4 as discussed in the previous results. Even so i would have expected the ‘Actual ROI’ to be a little closer to the ‘Expected ROI’ after this period. So it leads me to believe that were probably late payments or even defaults on the loans i’m assigned to. Of course Lending Works being an entirely ‘Black Box’ platform there is no way of knowing this as you are given no specifics on where your money is actually lent, other than UK loans.

Total loans on the Lending Works platform have increased in the 12 months by 53% from £85 million to £130 million, making it a substantial player in the P2P personal loan type sector. This year is shaping up to be Lending Works lowest bad debt rate since its inception which is impressive for a company of this type and scale. Rate currently 0.1% however we are only 9 months in to this year so this figure might rise when more defaults are written off by the end of the year. Interestingly the borrower APR has increased in 2018 by 2.00% to 11.2% meaning borrowing is more expensive, although it doesn’t seem to have slowed demand.

 

Conclusion

I am perfectly happy with the Lending Works platform at this time and the rate of return I am reviving. I do not intend to withdraw any funds in the short term, in fact quite the opposite, I will continue to grow my deposit over the next 6 months.

Growth Street – An Introduction

Introduction

Growth Street Exchange Limited (full name) is a UK based, business focused P2P lender launched in 2015. The minimum deposit and minimum loan part for Growth Street is £10, made via bank transfer only. Current advertised annual return is 5.3%.

How Growth Street works is interesting, once a deposit has cleared you place an order on the market for the deposit to be assigned to a loan (Growth Street is ‘black box’ in nature so it chose the loans for you although you can view more detail on a loan once it’s been assigned) . All loans however are on one month rolling contracts. This means your deposit plus interest is redeposited back to your account balance at the end of the month, to be re-instructed for lending on new loan. This effectively means a total account closure/withdrawal could be performed in as little as a one month. This potentially makes Growth Street one of the most liquid P2P offerings on the market to date. Worth noting this is excluding the effects of defaults, which would be ‘unsellable’.

Growth Street does not offer a secondary market place so you are tied in for at least the month of the contract.

Growth Street Summary Page

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Summary Page for Growth Street

Money On Loan – shows the total balance currently assigned to loans.

Money On Market – shows the any open orders awaiting loan part assignment.

Holding Account Balance – shows any funds not yet on loan or queued for lending, with a minimum loan part of £10, cash drag is a factor with Growth Street. These holding balance funds can be withdrawn at anytime.

Current Interest Accrued (Unpaid) – is the outstanding interest on live loan part that should be expected with-in the next four weeks.

Interest paid to date – is the total interest paid on the deposited balance excluding accrued interest.

To perform a total account withdrawal you will first need to turn off the ‘Reinvestment’ instruction, accessible from the top right dropdown menu on the main website.

Money Thing – 6 Month Results

6 Month Results

The first 6 month’s 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 rage 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.

Unbolted – An Introduction

Introduction

Unbolted is a P2P platform established in 2013. Unbolted is a trading name for Open Access Finance Ltd . The platform offers borrowers four types of loan : a personal asset bridge loan ; a sales advance loan ; a bid now, pay later loan and a small business loan. From the lender perspective these loans fall in to three different protection levels : ‘Gold Trust’ insures lenders against a drop in gold price for loans secured against jewellery and watches ; ‘Provision trust’ used against most other loans types designed to be used in the event of a short fall in repayments to a lender (at the discretion of Unbolted) ; occasionally Unbolted offer unsecured loans usually to know and trusted borrowers.

For the most part Unbolted is an Auto-Invest platform. You pick which of the three loan types you want to invest in, deposit a minimum of £100 and diversify for as little as £5 per loan, click confirm and Unbolted will do the rest. Interest is accrued daily with an advertised annual return rate of around 7.2%.

The main account page

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Main account page for Unbolted 

The account page is basic and I like basic.

Loans On Sale box – if you click the buy now button you will see any loans you can manually buy in to now. However these tend to be quite rare as most will opt for the ‘Auto Invest’ function which fill loans very fast. Be careful though as the available loans may well be ‘Unsecured’ loans that are less popular for ‘Auto Invest’. I’m not suggesting these loans are of any less quality but they will require reading on your part to work out if you are personally comfortable with the risk/reward on offer. The ‘Auto Invest’ button allows you to adjust your ‘Auto Invest’ preferences at any time as discussed previously.

Add or Withdraw Funds box – deposits via bank transfer, usually 2 working days to clear, minimum of £100. Withdrawal of ‘idle’ funds is immediate (24 hour bank processing) but withdrawal of assigned funds will require your loan parts to be sold/transferred first. Make sure you pause ‘Auto Invest’ first otherwise your funds will just go round in circles. Selling of loan parts is conditional to market availability of buyers, generally allow a few days per £1000 being sold.

My Portfolio box – shows your live headline figures. ‘Cash balance’ is idle funds and withdrawal-able at any time. Investment balance is the total you have assigned to live loan parts. ‘Total Portfolio Value’ is the two figures combine. You can also ‘View Portfolio’ and this will list every loan you are currently invested in. It includes details like loan type: start date; due date; last repayment date; loan status and loan part size.

My Returns box – shows you total platform deposits against your total interest earned to date.

My Recent Investments box – gives you a snapshot of your last five loans you invested in. You can view the full list by clicking ‘View Portfolio’.

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).

 

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.

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

 

Funding Secure – 6 Month Results

6 Month Results

The first 6 month results for lending through the Funding Secure platform are as follows –

Expected ROI 12.08%
Actual ROI 0.00%

Results look poor right ? Well not so fast. As explained in the introduction piece Funding Secure offer exclusively ‘return on term loans’, this a 6 month review, add a couple of weeks for offers to be activated means none of my investments have actually reached term yet. That said Funding Secure do display the accrued interest for each loan part calculated daily. Hence how the 12.08% ‘Expected ROI’ has been arrived at.

Theres not too much more I can say at this point other than in lieu of any concrete results Funding Secure remains one of the smallest exposures with-in my portfolio. I would still consider Funding Secure to be one of the higher risk platforms on the market, as general noise in the community is littered with bad experiences. Funding Secure also do not perform any credit checks on borrowers as all loans are asset backed so they claim they do not need to. So I remain nervous and apprehensive about what my experience in reality with Funding Secure will actually be. I will hold my investment as is, until I have further results to go on. Finally I would not recommend Funding Secure as a beginner platform for the reasons stated above, plus for a beginner waiting so for a return may find it disheartening and frustrating. Watch this space for a more comprehensive review in the near future.