It’s well over a year now since I first wrote to you about peer to peer lending and what I was doing. I think it’s time for an update – things have got even better – but first a brief recap:

Interest rates on saving have been pathetically low for several years now, and there’s no sign that‘s about to change any time soon. In fact, just this morning, rates were slashed to the bone in response to the Coronavirus outbreak.

Alternatives? Well how’s the stockmarket been working out for you recently?   If you’re anything like me, not very well at all!

About three years ago, all this caused me to start looking at peer-to-peer lending. I opened accounts with a number of companies and started lending money out at anything from 3% to 8.5% per annum – much better than the rates on offer from regular institutions. On the whole, the experience has been excellent. My returns from the cash I had sitting earning next to nothing in bank accounts has gone through the roof, and any risks there are have been mitigated by spreading funds.

  But it isn’t for everyone (or it wasn’t!) because there can be drawbacks:

1.  Entry requirements can be prohibitive  

Some peer to peer lenders require that you self-identify as a high net worth individual. That means an income of over £100,000 a year or assets in excess of £250,000, which rules out most of us.  

2.  Security can be less than perfect

To my mind, the best loans to invest in are those secured by property. Property values are relatively stable, so if the loan is secured against a property at a maximum of 70% LTV, there should always be plenty of security there if the borrower defaults (although returns are never guaranteed).

However, some companies lend to individuals on an unsecured basis, and others lend to businesses, secured on the assets of the business. Neither offer the same level of security as property and so headline rates can be eaten into by defaults.

3.  Company websites can be complicated

Sometimes it’s hard to see exactly what’s going in or what you’re investing in, and the nature of the loans you’re investing in, isn’t really clear.

4.  Some loans can be long term

I don’t like to tie my money up for more than a year. Some companies specialise in loans of 3 to 5 years, meaning you can’t get your hands on your money if you need or want it quickly.

Now if you’re a millionaire, happy to tie your money up for several years and can spread your money wide enough to take the rough with the smooth, none of this is a deal-breaker. As I said before, I’ve done very well out of peer-to-peer lending.

But what if you just want a reasonably secure home for your nest egg, where you can invest smaller amounts quickly and simply…and get better returns than most of the other companies out there…and way more than the banks or other regular financial institutions?

About 18 months ago, I discovered a company called Kuflink, and started moving a lot of my peer to peer lending in their direction. If you’re a fan of Premiership football you might have seen the name displayed prominently at pitch side at Southampton home games. The company are a major sponsor of the club.

Let me tell you why I like Kuflink…  

• All loans are secured against property at a very comfortable loan to value, so risks are relatively low, and there is ample coverage should anyone default.
• Loans are typically for 12 months or less, so you have fast access to your funds.
• The website is simple and easy to use. You can be up and running and investing in 15 minutes.
• Investment clarity. You can see exactly which property loan you’re investing in, read the valuation reports and see the actual property. You could even go a stage further and see it if you wanted to!
• There’s the option to invest in a ‘basket of loans’ to spread risk and make the whole process even easier.
• The company put their own money on the line by investing in each loan before outside investors.
• Returns are between 6.5% and 7.2%.
• Authorised by The Financial Conduct Authority.  

And the icing on the cake? You don’t need to be a millionaire (or anything like it) to invest and start benefitting. You can open an account with as little as £100 and start investing with that.

I’ve looked at over a dozen peer to peer lending sites and invested in at least six. In my opinion, Kuflink offers the best combination of returns, security, clarity and simplicity for anyone who has a spare cash languishing in a bank account and wants a better return without undue risk or effort, or tying their money up for several years.

I now have a substantial six figure sum invested through Kuflink and recently moved another slice of my peer to peer lending over to the company following a meeting with the company chief executive who impressed me with the lengths the company go to, to keep investor’s money safe.

  Here’s a link to some more information.

https://invest.kuflink.co.uk/invite/MH-3177

If you do decide to invest using this link, aside from the 6.5% to 7.2% you’ll earn, I’ve arranged for you to receive a bonus cashback of between 2.5% and 4% if you invest at least £1,000. So that’s quite a return on your money in the first year – as much as 11.2%. But that’s only if you invest through the link. This isn’t an offer that’s open to everyone.

I’m not authorised to give you any kind of financial advice – I’m just giving you my opinion and telling you what I’m doing – but if you have any questions about my personal experience with Kuflink or any of the other peer to peer lenders, just drop me an email at John@streetwisepublications.co.uk. Don’t forget that in order to qualify for the 2.5% to 4% cashback, you’ll need to use the link I gave you earlier. It’s not for everyone! 

https://invest.kuflink.co.uk/invite/MH-3177

Become A Fitness Guru  

Let’s be honest, getting in shape isn’t that complicated – it certainly isn’t rocket science. Ordinary folk do it all the time and there are many different ways of reaching the same destination. Yoga, weight training, interval training, pilates and cycling are just a few of the proven ways to get in better shape. If you’ve used one of these, or something completely different, you may have the basis of a profitable business in your own body.

  Tens of millions (perhaps hundreds) are spent every year by people in search of ‘the secret’ to getting in shape. If you’ve found a way that works for you, perhaps it will work for others too. It could be worth thinking about how you could turn what you already know into cash. Books, courses, personal training sessions and group classes are just a few of the ways you could make money in this field.

Today’s National Day   

NATIONAL HOME SPA DAY!

PUBLISHERS NOTICE

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