Anybody invested in Zopa?

[mackay45]

ringram said:

mackay45 said:

Currently setting my brother up with a fundingcircle account so that I can get the referral money out of them.

Bad idea, fundingcircle is the best way to waste/lose money, there is no protection unlike zopa and ratesetter.

Various reasons including the fact its not personal loans, its company loans and people seem to like prepacks and winding up companies for fun. Avoid at all costs IMO.

Have you tried funding circle? (not a dig, just asking)

I've been using it for about a year now, being fairly picky with what I bid on - haven't had any bad debts yet (though see below re starting slow) and have spread my cash quite wide to avoid the risk of a big default. Mainly go for the fixed rate property development loan type stuff now as it seems a bit safer, and usually comes with personal guarantees from the directors to avoid the risk you mention re prepacks etc.

It's a bit more interesting than a bank account and my returns seem ok so far (though I started fairly slow with only 1 2014 deposit of £100 - I've put a further £600 in this year, so still not massive amounts).

A default or two would hit my returns pretty hard and wipe out any real benefit of using the site in the first place for me (as you point out).

The refer a friend offer with funding circle pays £100 (£50 each) on a £1k investment so there is already a fairly good buffer in there for bad debts etc. There are plenty of property loans (for developments) which pay circa 8% interest for about 12 month loans and have the director guarantees.

Summary: I know there is risk, but I don't think it's as bad as you suggest and not enough to "avoid at all costs" but interested to hear people's opinions.

[ringram]

Yes I put £10k in funding circle about 3 years ago if that helps

I would not use it again. As I said thats my opinion. Glad you have not had the same experience.

Granted mine was during the harder years of the recession. But then so was Zopa.

[mackay45]

ringram said:

Yes I put £10k in funding circle about 3 years ago if that helps

I would not use it again. As I said thats my opinion. Glad you have not had the same experience.

Granted mine was during the harder years of the recession. But then so was Zopa.

Fair enough. Recession probably didn't help and perhaps Funding Circle have wised up a bit to some of the tricks people like to pull. The word of warning is appreciated though, will make sure I don't get complacent on there.

[gregf40]

I was one of the first users of Zopa - I even get an extra 0.5% interest on my account from them as a thank you, which is nice.

Sadly, the loans I have lent out at circa 10% are coming to an end and the rates now are much lower than back in 200X.

I would highly recommend them though as a P2P lender - very easy to use, low risk and a soundly run company.

I also lend through LandBay (which I have a small shareholding in - less than 1%) which is similar but with slightly lower rates - but the loans are all secured against property as opposed to Zopa loans which aren't secured. James who co-founded Zopa is actually on the advisory board.

I have links to both in my profile if anyone is interested.

Can't comment on any others as I have only used these two. However, I would say that you should think carefully before lending to businesses - the interest rates are much higher because of the associated risk - which shouldn't be underestimated.

With it being so easy to sell and cash out your loans I genuinely don't understand why anyone would have cash sat in a current/savings account.

[pincher]

Hmmmmm, could I P2P through my Ltd Co account?

[x5x3]

pincher said:

Hmmmmm, could I P2P through my Ltd Co account?

yes you need to open an account in your name then convert to the ltd co