So, you’re looking into P2P and not sure
what it all means or where to start? That’s where Fundshare can come in. Simply
tell us what sort of investment you may be interested in and we’ll provide you
with a range of potential P2P platforms which may suit your investment
If you’re completely new to the game here, head to our blog page where you’ll find a number of handy guides and articles which explain P2P in simple terms.
When you land on the Fundshare homepage, you’ll come across a search box with a number of options for you to fill in. This is where you tell us what sort of investment you’re interested in and what criteria you’d like your investment to reach. This is the first step in making your new investment.
Each P2P platform has a different minimum investment that they accept. Some accept investments from as little as £1, and others require up to £5,000 as a minimum investment. Our search filters whittle it down from the value you put in so you’ll only see the platforms which are relevant to you.
Just like the investment amount, the investment period also differs between each platform, sometimes between each product and, in the case of self-select accounts, sometimes within each individual loan also. So, you tell us how long you’re willing to put your money away for, and we will narrow the options for you. Remember that if you choose a fixed investment period or a loan provider without any early access options or secondary market, you may not be able to access your money until the end of the term. Some platforms may also penalise any early exit with fees or reduced interest, so be sure to read up on each provider before you make your investment.
Every platform lends against different assets, at different loan-to-value (LTV) and with different types of security in place. Whether they’re lending to a business looking to secure some capital or an individual looking to finance a car, you may want to narrow down to what sort of loan you would like to invest in. For example, if you already have some buy to let investments you may want to consider P2P loans that aren’t secured against property, for diversification purposes.
If you’re not up for a fixed investment period (see above) or you’re wary about locking your money away for a set period of time, this where you can select whether you’d like the possibility of an early exit. Be aware however that some P2P platforms, whilst allowing you to exit early, may charge you for ending your investment early.
This is where you decide how much control you’d like in your investment. If you choose an account-based investment, you’ll likely have less say in the details and particulars of the loans you invest in. You’ll set up an ‘account’ with the P2P platform who will generally then automatically diversify your funds for you across a number of loans. If you choose a self-select investment you may be able to select each borrower individually based on their credit score, borrowing history and other financial details available within the platform. To find out more, check out our guide to self-select and account-based Peer-to-Peer investing here.
Now that you’ve selected your personal lending criteria all you have to do is scroll down to the table where you should see a number of investments that may be suitable for you.
If you feel that you wish to change some of the criteria simply go back up to the form, amend your details and hit update - the results will then change accordingly.
Don’t forget that if you’d like to get these results sent to you to review later, pop your email address in the tab just above the table.
When you’ve chosen your investment specifics, simply scroll down to the table where you can see the results which may be suitable for you. Each result has a detailed run down of exactly what that investment contains with more information available when you click on the platform name.
For example, a search done on the 10th of October 2016 for a £5,000 account-based business assets investment for three years with an early exit as seen above, would show the following results as the top two investments that may be suitable for you:
From left to right, you’ll first find the name of the investment, which in the case of the top result is the Assetz Capital 30 Day Access account. Next you’ll see the annual rate of return of 4.25% with the term period laid out for you which, in this case is 30 days.
In the next column, you can see the estimated one year interest amount and what it has been secured on below. In the final column you can see the minimum and maximum investment amount and explanations about who decides where the money goes and whether you can exit or not.
Just below the ‘Apply Now’ button you can see whether or not the investment is covered by any sort of provision fund or other form of investor protection which may safeguard your investment. If you’d like to know more about provision funds and other forms of protection, please read our guide here.
If you like the look of the investment, select ‘Apply Now’ and we’ll redirect you to the provider website so you can register and take the first step to your new P2P investment.
Download the guide and take it with you wherever you go.