Peer to peer lending (P2P lending) is increasingly recognised as a mainstream asset class. Simplistically put, direct lending and P2P lending brings together investors with borrowers (this could be an individual or a business), often via an online lending platform.
Invest in peer to peer lending - the smart way
In an uncertain economic environment; with savings account offering negligible returns, decreasing yields on 'go-to' investment products and stock market volatility, wealth preservation can be a challenge.
Peer-to-peer (P2P) lending (which falls under the Direct Lending umbrella) can offer an attractive alternative, delivering stable returns generally around 6% p.a.
P2P lending can be an increasingly popular option for investors looking to diversify their lending portfolio - potentially achieving risk adjusted returns with lower volatility.
Spreading investment across different partners and loan types, focusing on lending secured against property, can help to manage risk and target healthy returns.
Peer to peer lending connects borrowers and lenders. Investors (lenders) use direct lending and peer to peer lending platforms to invest in lending opportunities, enabling individuals and companies (borrowers) to raise finance.
Smaller scale projects, including building affordable housing, are typically funded by specialist bridge finance lenders, who respond quickly to opportunities.
Enabling companies to obtain funding in a flexible and cost-effective way. Finance can be structured as a Corporate loan, Asset-backed Loan, or as Invoice Discounting.
Established in 2015, we are the UK’s leading Direct Lending specialist, enabling our clients to target consistent performance with a well-diversified portfolio of carefully selected loan opportunities.
Achieving attractive returns through Direct Lending and Peer to Peer Lending (which includes peer to peer loans) is about minimising risk. We filter loan opportunities from our 33 approved lending partners.
A focus on property-backed lending helps protect loans by minimising any downside loss. BondMason Core clients have achieved an average net return of 6% p.a. every year since 2015.
Before you invest your money anywhere, it is important you fully understand the potential pitfalls. We have a number of guides and articles to help you make informed decisions.
- Downloadable Guide: Peer to Peer Lending
- Downloadable Guide: Steps to Successful Investing in Direct Lending
- What are the pros and cons of peer to peer lending?
- Is P2P lending too risky for everyday investors?
- How do I choose a P2P lending platform?
Capital is at risk. Nothing in these articles or guides should be construed as advice. Please contact your Financial Adviser to determine if Direct Lending is a suitable allocation for your investment portfolio
We understand the importance of acting as a careful custodian of our clients' money and operate with a strict Code of Ethics to ensure our clients' best interests are met.
As with any investment your capital is at risk and returns are not guaranteed. The value of investments may go down as well as up and you may not get back the original amount invested.
Please read and consider the risk warnings carefully. If you are in any doubt you should discuss this investment opportunity with a Financial Adviser
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