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.
- Partnership returns software 112 2
- ICAEW student, Dilema with client & boss 818 18
- Tasks for new trainees 170 4
- Capital Gains on Inherited Property 284 10
- VAT on garage rent 150 9
- Error or mistake claims (as was) 97 1
- Partnership profit share - tax efficient for husband and wife 171 3
- Property scam victim 326 5
- Has anyone been told of the extra Sage Payroll fees for auto enrolment? 251 6
- How to use importing procedure for Transfers between the bank accounts 67 1
- Have i messed up? 760 11
- Are HMRC getting it right? 427 8
- 10 year debentures and CT 64 1
- Is there a legal obligation for the Inspector to hand over minutes of a meeting 122 2
- Obvious Question but if NOT registered for VAT EU refunds as under minimum amounts, what does an expense get recorded as for UK VAT return? 84 1
- COMPANY DIRECTOR 88 1
- Client using boyfriend's personal account 581 15
- Offshore insurance bonds 111 2
- Playstation 4 - Allowable expense or not? 2,659 46
- Tax Returns, 2011-2012 277 6
- Desperately seeking Susan, Sam or anyone with any other name 1,101
- Experience with Islamic investor following Sharia-compliant rules? 579
- Darwinpay Partnership Assessment 386
- S464A Charge to tax: conferring benefit & BIK 291
- Charge out rates in London? 246
- Interest on Loan to a Company 191
- Bank interest in 'near' facility recall situation 176
- Agent fees to sell business 166
- Alphabet shares 164
- ACCA continuity of practice arrangement needed 157