Peer to Peer Lending-a warning
Is Peer to Peer lending the next disaster waiting to happen?
Such lending is not covered by the Financial Compensation Scheme which applies to bank savings to a max of £85,000.
Presumably,a lender lends initally to the organisation who then in turns lends to individual borrowers and so the contract is between organisation and lender.If the organisation employees either bankrupt or steal the funds lenders only rank as unsecured creditors?
Is an average 8% interest rate adequate compensation for taking such a risk.I would have expected 8% for secured lending.
Peer to Peer organisations have gone bust in the past.
Only the future will prove if this analogy is correct.
- Is Xero payroll as rubbish as I suspect it is? 1,087 20
- QBO VAT box 2 and 4 128 1
- VAT - Check on clients business 601 25
- Transfer of a trade WITHOUT assets? 122 1
- Amend a 2010/11 return 121 1
- Advanced SMP, but employee returns to work early 169 1
- How to deal with prior year error 170 2
- Repaying Directors Loans within 9 months 539 19
- Bookkeeping Rate of Pay 2,342 33
- What's the Barmiest Reason A Client gave you for going? 2,050 20
- Tax Calculations 660 10
- Tax Fines - HMRC 415 4
- Exemption from CGT 249 2
- VAT Registration 256 3
- Digita Users - Can you please confirm? 468 14
- Autumn statement predictions 446 8
- ACCA Practising Certificate Holder 351 4
- How to claim relief under a Double Taxation Agreement 199 3
- Moneysoft error 436 7
- Repaying Directors loan by transferring an asset 650 26