P2P lending/investments

Online markets create new breed of alternative investments

Has anyone on PC tried this?

 

Hi,

I have been reading about it, rate setter is leading in this segment, based on what I have read.

There are no of companies doing this and recently rate setter got approval to lend to companies as well.
It would come with its own risks of borrower not paying back and your claim of getting your money back is nil if provision fund does not have the funds.

It's here to stay as it has got good no of lenders and borrowers

Haven't made any transactions yet, in research mode. Keen to hear others responses

 

I think p2p lending could be great, but go in eyes wide open on the risks you are taking.

I heard Christopher Joye from the fin review talking about these, saying something along the lines of:

ask yourself why these people you are lending to can't get finance another way. They are too high risk for conventional lenders, and thus the interest rate attached to their loans is higher. If you are getting 10% return on your capital, make no mistake, you are taking equity level risk there, these aren't low risk investments