How Risky Is Peer-to-Peer Lending?

A fork-lift truck moves goods in a warehouse

Peer-to-peer lending attracts people looking for higher returns, but many people are put off by the risks involved. But one size doesn't have to fit all.

Asset-backed loans are less risky for the lender. If the borrower has difficulty making the repayments, the lenders have the legal right to take some of the borrower's assets, and sell them to make up the payments.

P2PFA Head: We're Less Risky Than The Stock Market

Christine Farnish of the P2PFA

Source:BBC

Christine Farnish of the Peer-to-Peer Finance Association delivered a robust defence of peer-to-peer lending this weekend, declaring it 'less risky than the stock market' and comparing the new generation of lenders to Google for their innovative potential.

Ms Farnish also criticised the management of troubled retailer BHS this morning, for failing to manage the company's finances and balance their responsibilies to customers, pensioners and shareholders. 

Tandem: A Bank Built For Two?

Tandem logo

Tandem Bank is good at wooing the crowd. A few weeks ago it turned a pub into a bank, to make a point about how bad banks are at customer service. Then it announced it was giving free shares to customers in exchange for advice.  But is it it a good investment?

Where do 'challenger banks' like Tandem fit into the alternative finance landscape. Banks and start-ups are becoming allies, so what is it that makes it a bank, rather than a Fintech company?

Top Reasons Angels Invest

two angels unfurling a scroll

Crowdfunding allows small investors to invest in startup equity, and, in many cases to get the same reward for the same risks. How do you think like an angel? New research by Propel(x), a  platform that helps business angels discover and invest in biotech, medicine and information technology, quantifies what motivates angels, the reasons they invest and the things they look for.

We can't teach you to think like an angel, but if you want to know what the angels are thinking, this'll get you started.

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