Loanpad - p2p Lending platform
Discussion
I have no idea about loanpad but just read about Lendy and the misery and carnage they created.
This things are invariably run for the sole benefit of the promoter without any thought given to the investor.
I thought most had closed or been closed down.
Overall I'd be very sceptical of this as the loan terms will be complicated and who you lend the money to will perhaps not be the entity you think it is.
I put £1 into Lendy years ago so I got access to their lending/funding schemes. I still see the Administrators reports.
I recall one in there, £2.2m lent, recovered £1.6m but due to convoluted loan structure, lenders after fees got 600k of £2.2m.
Lendy was far from the worst.
If these schemes worked consistently, the smart money would be in them, 12% pa would do firms who pay out 7% to investors, leaving 5% for them.
A few of these schemes have literally ruined lives
This things are invariably run for the sole benefit of the promoter without any thought given to the investor.
I thought most had closed or been closed down.
Overall I'd be very sceptical of this as the loan terms will be complicated and who you lend the money to will perhaps not be the entity you think it is.
I put £1 into Lendy years ago so I got access to their lending/funding schemes. I still see the Administrators reports.
I recall one in there, £2.2m lent, recovered £1.6m but due to convoluted loan structure, lenders after fees got 600k of £2.2m.
Lendy was far from the worst.
If these schemes worked consistently, the smart money would be in them, 12% pa would do firms who pay out 7% to investors, leaving 5% for them.
A few of these schemes have literally ruined lives
i was in thincats - offers of 12% loans - one got repaid in full on time.
Another left me £2k out of pocket - administrators called in, just general dodgy practice all round.
I wouldn't go near it again. If you want better returns with some risk - buy some bitcoin when it drops 30% - it always does and come back to it in 3-4 years.
Another left me £2k out of pocket - administrators called in, just general dodgy practice all round.
I wouldn't go near it again. If you want better returns with some risk - buy some bitcoin when it drops 30% - it always does and come back to it in 3-4 years.
Curious as to why you think it looks well considered?
It has all the usual red flags for P2P in terms of opacity around actual underwriting criteria, this time in a relationship seemingly one step removed from the debtor, but with a few even larger red flags than normal.
For example:
Read the biogs on the "about us" page. Pay particular attention to the background of the "Loan Manager responsible for assessing loans both at the due diligence phase and on an ongoing basis."
I am not suggesting he's a bad person or in any way dishonest but let's just say it's a far from conventional background for someone making credit decisions..!
Then also read through the FAQs and pay particular attention to the rates they charge borrowers (4.00% to 10.00%) and perhaps also consider if you think the the difference between these figures and the return to you (either 3% or 4%) is a "small margin".
You never know it may work, but much as I'd like 3-4% return it isn't one that I'd put a penny into.
I should note that I am fiercely anti retail-P2P for a range of reasons, but mainly because it relies on small investors misunderstanding the risk they are taking and being mispriced accordingly.
It has all the usual red flags for P2P in terms of opacity around actual underwriting criteria, this time in a relationship seemingly one step removed from the debtor, but with a few even larger red flags than normal.
For example:
Read the biogs on the "about us" page. Pay particular attention to the background of the "Loan Manager responsible for assessing loans both at the due diligence phase and on an ongoing basis."
I am not suggesting he's a bad person or in any way dishonest but let's just say it's a far from conventional background for someone making credit decisions..!
Then also read through the FAQs and pay particular attention to the rates they charge borrowers (4.00% to 10.00%) and perhaps also consider if you think the the difference between these figures and the return to you (either 3% or 4%) is a "small margin".
You never know it may work, but much as I'd like 3-4% return it isn't one that I'd put a penny into.
I should note that I am fiercely anti retail-P2P for a range of reasons, but mainly because it relies on small investors misunderstanding the risk they are taking and being mispriced accordingly.
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