P2P Lending

NY1106

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Anyone tried P2P Lending before, like Crowdo, Funding Societies, Moolah, etc?
Care to share? Thanks
 

wira

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Invested small sum using capital match on invoice financing.
So far so good. Returns so far this year is around 8%.
 

NY1106

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Invested small sum using capital match on invoice financing.
So far so good. Returns so far this year is around 8%.
Thanks for the reply. Heard that Capital match has higher default rate?
 

wira

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Thanks for the reply. Heard that Capital match has higher default rate?

So far ok for me. As this is invoice financing the amount you invested per invoice is quite small ($20-few hundreds) so the risk is diversified
 

terryhoho

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If I tell u we play scissor paper stone.
If U win u make $12.
If u lose give me $100.

Want play Mai?

If u like idea of diversity, I ask my 10 friends play with u. Same odds.
 
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wira

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Avoid Moolahsense as can be seen from ms thread.
So far my experience with capital match is ok.
Already got 10+% returns on one year investment.

As always only put money you can afford to lose for such high risk investments.
 

Perisher

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1 year too short to determine... wonder if anyone has at least 5 years experience with any of these P2P lending platform.
 

NY1106

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Regret using Capital Match. More than half of the loan is late and probably will be defaulted. The manager doesn't seem to care about investors.
 

murphys

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I wonder if the underlying companies can secure a bank loan - if not, then would you as an individual lend them money over the long terms and hope to earn a decent return? The middle man stands in between to make a spread and has no credit risk so that basically reduces the return needed to compensate for the risk - same with banks but at least banks have some skin in the loans they make out.
 

JoseBaller

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I wonder if the underlying companies can secure a bank loan - if not, then would you as an individual lend them money over the long terms and hope to earn a decent return? The middle man stands in between to make a spread and has no credit risk so that basically reduces the return needed to compensate for the risk - same with banks but at least banks have some skin in the loans they make out.


generally, at times these firms do not have enough of a credit history, or they have already taken some loans before. but even at these p2p websites (based on my research) have their own checks on companies before providing the loan.

they firms that are borrowing might just need some money to get through a rougher time, or for certain expansions that cannot wait. it is possible to make money. just make sure you do not get too greedy, and properly diversify your investments. whatever investments you do, there is always a chance to lose some..
 

kfw1g10

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generally, at times these firms do not have enough of a credit history, or they have already taken some loans before. but even at these p2p websites (based on my research) have their own checks on companies before providing the loan.

they firms that are borrowing might just need some money to get through a rougher time, or for certain expansions that cannot wait. it is possible to make money. just make sure you do not get too greedy, and properly diversify your investments. whatever investments you do, there is always a chance to lose some..

Can you pm me your referral code for funding societies?
 

LexusIS

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I wonder if the underlying companies can secure a bank loan - if not, then would you as an individual lend them money over the long terms and hope to earn a decent return? The middle man stands in between to make a spread and has no credit risk so that basically reduces the return needed to compensate for the risk - same with banks but at least banks have some skin in the loans they make out.

Yes bank loans are cheaper so why doesn’t these companies go to the banks?

1) How are these companies being evaluated (profitable?, positive net worth, Low leverage, good quality guarantor etc, Long operating history) or simply any company who needs cash and meets their basic criteria are put up?

2) what kind of default rate are these p2p lenders facing (lend out 10 loans how many default, eg 1 = 10% NPL ratio) and why won’t they share ...... so be prepared for high default rate. Means if 2 out of 10 companies go bad, you will probably need at least 35% interest rate to justify the risk.
 
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