The traditional methods of investing and borrowing money have changed in recent years with the arrival of a new type of provider in the marketplace.
Marketplace lending platforms are used to lend money to individuals or businesses through online services that match lenders with borrowers.
The popularity of this method has increased in the past seven years or so with the emergence of a growing number of online platform providers offering benefits over the more traditional approaches.
For example, it can take half the amount of time for borrowers to secure loans, which with a high street bank transaction can take anywhere between 60 and 90 days before any cash passes hands.
However, most likely, the biggest attraction for investors is the higher rates of return on their investment, upwards of between 7% and 9%* compared to the average 4% traditional investments are currently achieving.
We have a long history in the marketplace, and we are a very flexible type of lender.
Backed up with property
One of the leading and most experienced marketplace lending platforms around was set up in 2016 by Kuflink. It provides opportunities to invest in loans secured against UK property, unlike many of its competitors.
There are two sides to its business. Investors who can invest in property loans and borrowers — if they meet eligibility criteria — can receive money subject to 70% loan to value.
The projects available range from 3 to 24 months in duration. These projects are diverse, from someone who may have bought an auction property to refurbish, to larger developers seeking funding for their next development project.
The number of investors in any loan can vary, depending on the size of the project. Kuflink offers two products; investors can choose to invest their funds in either the Select or Auto products and both are ISA eligible.
Understanding the risks
Narinder Khattoare, Chief Executive Officer, says: “We are authorised and regulated by the Financial Conduct Authority (FCA), our borrowers must meet our criteria, and our investors need to fully understand the risks in putting their money into our platform.”
“We underwrite all borrower applications, which also enables our investors to make an informed decision on the investment proposition.”
“We have a long history in the marketplace, and we are a very flexible type of lender,” concludes Khattoare.
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*Don’t invest unless you’re prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong.
Kuflink Ltd (Company Number 08460508) is authorised and regulated by the Financial Conduct Authority since 2017 (Firm Registration Number 724890). Kuflink Ltd has its registered office at 21 West Street, Gravesend, Kent DA11 0BF, United Kingdom.