Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 23.05.2019, 13:48
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 13,288
Groaned at 268 Times in 174 Posts
Thanked 15,677 Times in 6,661 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Does anyone here invest in P2P lending?

To me, it just looks like a huge scam and I'm surprised that many people are investing into this.
Reply With Quote
The following 2 users would like to thank Phil_MCR for this useful post:
  #2  
Old 23.05.2019, 14:07
Forum Legend
 
Join Date: Mar 2013
Location: Formerly in Neuchatel
Posts: 2,709
Groaned at 218 Times in 147 Posts
Thanked 4,732 Times in 1,832 Posts
porsch1909 has a reputation beyond reputeporsch1909 has a reputation beyond reputeporsch1909 has a reputation beyond reputeporsch1909 has a reputation beyond reputeporsch1909 has a reputation beyond reputeporsch1909 has a reputation beyond repute
Re: Does anyone here invest in P2P lending?

I've heard some pretty bad stories about people just about breaking even or losing money and then it taking months to withdraw the money.
Reply With Quote
  #3  
Old 23.05.2019, 14:39
gbn's Avatar
gbn gbn is offline
Forum Legend
 
Join Date: Dec 2005
Location: Zuri Oberland
Posts: 2,713
Groaned at 108 Times in 73 Posts
Thanked 2,322 Times in 1,091 Posts
gbn has a reputation beyond reputegbn has a reputation beyond reputegbn has a reputation beyond reputegbn has a reputation beyond reputegbn has a reputation beyond repute
Re: Does anyone here invest in P2P lending?

Also poor returns for the risk

I asked a while ago https://www.englishforum.ch/finance-...r-lending.html
Reply With Quote
This user would like to thank gbn for this useful post:
  #4  
Old 27.05.2019, 11:51
Neko's Avatar
Junior Member
 
Join Date: Sep 2017
Location: Vaud
Posts: 83
Groaned at 0 Times in 0 Posts
Thanked 52 Times in 32 Posts
Neko is considered knowledgeableNeko is considered knowledgeableNeko is considered knowledgeable
Re: Does anyone here invest in P2P lending?

I help found a P2P company in the UK which works because the platform puts savers and borrowers together and cuts out a lot of the expenses of a bank. But the problem in Switzerland is the industry is very small and tighly regulated, the last thing the big banks want here is upstart businesses eroding their savings base so the Swiss P2P sector is left with the unappetising crumbs, eg getting inexperienced savers to lend to early stage businesses with massive and difficult to measure credit risks.


It's still expanding and I haven't looked at the sector since last year so if people have good experiences in CH, please share.
Reply With Quote
  #5  
Old 27.05.2019, 17:47
Jim2007's Avatar
Forum Legend
 
Join Date: Jun 2006
Location: Kt. Bern
Posts: 4,112
Groaned at 105 Times in 89 Posts
Thanked 4,542 Times in 2,165 Posts
Jim2007 has a reputation beyond reputeJim2007 has a reputation beyond reputeJim2007 has a reputation beyond reputeJim2007 has a reputation beyond reputeJim2007 has a reputation beyond reputeJim2007 has a reputation beyond repute
Re: Does anyone here invest in P2P lending?

Quote:
View Post
To me, it just looks like a huge scam and I'm surprised that many people are investing into this.
It is sub prime lending and it's very worst - amateurs with money assessing creditors to whom no one else willing to lend to. There are two winners and one patsy. The winners are the borrower and the intermediary who collects a commission. And I'm sure you can guess who the patsy is.....
Reply With Quote
This user would like to thank Jim2007 for this useful post:
  #6  
Old 28.05.2019, 18:13
Forum Legend
 
Join Date: Mar 2013
Location: Formerly in Neuchatel
Posts: 2,709
Groaned at 218 Times in 147 Posts
Thanked 4,732 Times in 1,832 Posts
porsch1909 has a reputation beyond reputeporsch1909 has a reputation beyond reputeporsch1909 has a reputation beyond reputeporsch1909 has a reputation beyond reputeporsch1909 has a reputation beyond reputeporsch1909 has a reputation beyond repute
Re: Does anyone here invest in P2P lending?

https://www.telegraph.co.uk/business...ce-firm-lendy/

Lendy seems to be the latest one to be going into administration. Apparently they only considered a loan to be late for their statistic when it was 120 days late.

60% of borrowers were in arrears. Madness
Reply With Quote
The following 3 users would like to thank porsch1909 for this useful post:
  #7  
Old 06.07.2019, 17:57
Junior Member
 
Join Date: Jul 2007
Location: Kindhausen
Posts: 92
Groaned at 6 Times in 5 Posts
Thanked 44 Times in 22 Posts
PitBull has no particular reputation at present
Re: Does anyone here invest in P2P lending?

I lent around GBP 5K via Zopa for many years - was good returns for the first few years, but they slowly went down over time, and the defaults started to go up so I got out before it went downhill any further.

Problem is a number of competitors came in and made it harder for anybody to make any money as it became a chase to the bottom.

I wouldn't go there now.
Reply With Quote
  #8  
Old 06.07.2019, 19:18
Junior Member
 
Join Date: Jun 2015
Location: London
Posts: 84
Groaned at 21 Times in 8 Posts
Thanked 134 Times in 44 Posts
Brian1985 is considered knowledgeableBrian1985 is considered knowledgeableBrian1985 is considered knowledgeable
Re: Does anyone here invest in P2P lending?

No different really from "professional" bond investors buying 100 year Austrian bonds with a 1% yield.....
Reply With Quote
This user would like to thank Brian1985 for this useful post:
  #9  
Old 07.07.2019, 20:58
Bozza's Avatar
Forum Veteran
 
Join Date: Jun 2009
Location: Zurich
Posts: 511
Groaned at 12 Times in 8 Posts
Thanked 335 Times in 181 Posts
Bozza has made some interesting contributions
Re: Does anyone here invest in P2P lending?

Quote:
View Post
It is sub prime lending and it's very worst - amateurs with money assessing creditors to whom no one else willing to lend to. There are two winners and one patsy. The winners are the borrower and the intermediary who collects a commission. And I'm sure you can guess who the patsy is.....
And you have proof of this do you? Large % of investors losing money?

I've invested in Zopa and ratesetter for years. Minimal defaults in Zopa, none in ratesetter. Well above market returns. I am not saying everyone has the same experience, but at the same time, others shouldnt just spout shit with no proof either.
Reply With Quote
  #10  
Old 08.07.2019, 14:33
Junior Member
 
Join Date: Jun 2015
Location: London
Posts: 84
Groaned at 21 Times in 8 Posts
Thanked 134 Times in 44 Posts
Brian1985 is considered knowledgeableBrian1985 is considered knowledgeableBrian1985 is considered knowledgeable
Re: Does anyone here invest in P2P lending?

I worked as a credit analyst looking at leveraged loans for a CLO manager so this is my take. The four main issues I see are (i) the lack of a liquid secondary market to allow investors to sell their loans when the chances of default increase, (ii) most investors don't have sufficient capital to fund enough loans to diversify themselves. For example, a CLO manager typically builds a portfolio of over 100 loans. (iii) There is typically not enough financial reporting data to make a fair assessment of the underlying credit profile of the borrower. And (iv) each loan is so unique that it's hard to benchmark against a peer group to gage if the risk/reward makes sense.

I suspect a skilled credit analyst could do well on these platforms but the average lender is likely to earn below average risk-adjusted returns.
Reply With Quote
The following 3 users would like to thank Brian1985 for this useful post:
  #11  
Old 08.07.2019, 14:57
Forum Legend
 
Join Date: Mar 2008
Location: ZH
Posts: 4,809
Groaned at 31 Times in 27 Posts
Thanked 6,432 Times in 2,676 Posts
doropfiz has a reputation beyond reputedoropfiz has a reputation beyond reputedoropfiz has a reputation beyond reputedoropfiz has a reputation beyond reputedoropfiz has a reputation beyond reputedoropfiz has a reputation beyond repute
Re: Does anyone here invest in P2P lending?

Quote:
View Post
I've invested in Zopa and ratesetter for years. Minimal defaults in Zopa, none in ratesetter. Well above market returns. I am not saying everyone has the same experience....
What do you think the factors are, for you, that make it a successful experience? Do you think it works well, for you, because of some aspect of how those particular two platforms work? Or because you yourself have sensible ways of assessing the loan?
Reply With Quote
  #12  
Old 10.07.2019, 18:10
Junior Member
 
Join Date: May 2015
Location: Bern
Posts: 38
Groaned at 0 Times in 0 Posts
Thanked 14 Times in 8 Posts
HannoA has no particular reputation at present
Re: Does anyone here invest in P2P lending?

I invested in some P2P platforms. Just a small amount of my portfolio, mostly because I am curious and did not want to have all that money lying around on a 0% interest bank account and I did not feel like investing more money into the stock market at the moment.

Most experience I have is with Mintos. I invested there for around 2 years now and I have an average retourn of 12.41 %, I had no defaults yet, although there where several credits which where up to 60 days late for the payments. I only invested in high risk ones with buyback guarantee.


For around 1.5 years I also invest in Estateguru, there I have one default and one payment which is 60 days late. My return there will be worse, because the average loan there was for 10-11%, and there are some defaults allready. I dont know if I will get that money back, because they are partly insured by the property itself, we will see.
I also tried the Bondora Go and Grow which gives a 6.75% return and you can take your money out daily, which feels saver than the other options and still not a bad return.



All of them are definitly high risk, because when there is a recession or any other bigger troubles on the horizon and the credits default and people want to take the money out I would not expect to get all my money back.
Reply With Quote
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
p2p lending mikdem Finance/banking/taxation 3 02.04.2017 17:34
Does anyone here live in Oberwil-Lieli? Odile Swiss politics/news 66 06.06.2016 21:31
Hi, does anyone here has kids in a kindergarten in Meggen? MarinaG Education 2 07.09.2015 17:53
Does anyone here keep goats? Snail Pet corner 4 30.07.2013 15:56
Does cablecom throttle P2P aplications? rob1 TV/internet/telephone 14 21.01.2012 17:51


All times are GMT +2. The time now is 22:44.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0