Peer-to-peer lending (P2P) is a way for people to lend money to individuals or businesses. You - as the lender - receive interest and you get your money back when the loan is repaid. But P2P lending can be much riskier than a savings account.
What is peer to peer lending?
P2P websites work like marketplaces. They bring together people or businesses that want to lend money with those that want a loan. It’s a way for borrowers to get funding without going to the banks. On some websites, any money you lend out is automatically divided between lots of borrowers, but with others, you can choose who you’d like to lend your money to. Generally speaking, the higher the interest rate someone will pay, the riskier they are likely to be.
Getting started with peer to peer lending
There are three main steps:
This means you can set limits on how much you want to lend each business and the lowest interest rate you’re prepared to lend at. Understanding the risks P2P lending can be risky for several reasons. It’s useful to understand these risks and how they can be reduced.
The risk of default
The person or business you lend money to might not be able to pay it back (called ‘defaulting’). The higher the default rate on a P2P website, the higher the number of people or businesses that are unable to repay their loans. Unlike bank and building society savings, the money you lend via a P2P website is not covered by the Financial Services Compensation Scheme. However, a number of P2P websites have contingency or provision funds, which are designed to pay out if a borrower defaults on their loan. These provision funds vary widely from one site to another, so make sure you know what’s covered if you’re thinking of becoming a lender. The risk of early or late repayment If your loan is repaid early or late, you could make less profit than you’d expected. If a loan is repaid early, you can simply lend out the money again. But there is a chance that you might not be able to lend out at the same interest rate.
The risk of the P2P site going bust
You could lose money if the P2P company itself goes out of business (several have). However, if they are regulated by the Financial Conduct Authority (as all P2P lenders operating in the UK must be), they must keep lenders’ money in ring-fenced accounts separate from their own. P2P lending and tax The interest you earn from P2P lending is taxable, but it is normally paid without tax being taken off. That means if you are a taxpayer, you have to tell HM Revenue and Customs about the interest you’ve received. You have to pay tax on all the interest you should have received, even if you don’t get the full amount because of defaults. You can get an Innovative Finance ISA which allows P2P loans to be held in an individual savings account (ISA). This means you can receive the interest from P2P loans without paying tax. Sources: Money Advice
0 Comments
Corwin Group proud and privileged to bring you our value partner, ZACD Investments Pte Ltd, a Singapore investment strategy firm. ZACD launches SGD 300 million Asia Real Estate “Opportunistic” fund (ARO) to focus on Luxury Homes in Singapore along with Data Centres and Australian student accommodation. The Group hopes to attract more regional institutional and individual accredited investors participation, minimum investment amount SGD 200,000. The fund targets an internal rate of return (IRR) of approximately 15% per year and pays a fixed dividend of at least 3.5% per year, paid semi-annually. The tenor for this fund will be three years with option to extend for another two years. The group has over the past 10 years invested in over 32 projects in Singapore (Residential and Industrial) and achieved an average IRR of over 20%. What is the investment amount? For 30% stake, a USD4mil deposit is required to buy into the company, and an estimated further equity/advances injection of USD8.5mil (new investor's share) to complete the development. Exit strategy: The current exit timeline is upon the stabilsation of resort operations in 2022/23 where the Resort and Wellness Centre could be divested together or separately. The landbank can be developed out or sold to another development vehicle. Invest in the development of prime London Property with a secured return in a short time-frame. Take advantage of this unique investment opportunity in London’s financial district. INVESTOR HIGHLIGHTS Return: 15% fixed per annum Term: 12 months Location: Canary Wharf Security: Secured loan note and first legal charge Min Investment Level- £50,000- Max- £500,000 > Located tip of the main land Cambodia, Phum Kaoh Norea where overlooks the famous Tonglesap River. > Mix Development of Retail, Commercial Office, Shopping Mall, Services Apartment, Resort and Country Club, International College, Private Hospital and Hotel > Surrounding by residential, business districts and tourist spot > Support by Ministry of Interior to redevelop Phum Kaoh Norea > With a total land area of 153 hectares > To raise a total fund of USD1.018 billions > Expected ROI of 300% > Minimum investment amount from USD50,000 only > Located at Pahang, Malaysia > Land size 100 Hectares > Testing report Ready > With survey report and outcome will be 2.6 mil tonnes > Required JV fund Rm5mil > JV terms 50:50 > with Total estimate ROI Rm34mil > ROI for JV partner Rm14.6M > Located right at the up coming satellite city of Selangor, Malaysia > Mix Development of Retail, Shopping Mall, Services Apartment and Hotel > Surrounding by residential and business districts > Concept by Korean and British designer and architect > Build by a progressive property developer in Kuala Lumpur > Generating income from rental, parkings space and profit sharing on development from 3 projects for 6 years > Minimum investment amount from $50,000 only > Located right at the center of Wellingborough’s market square > An anchor building for the community for hundreds of years > With local government support to protect and restore this beautiful building > Manage by the world’s leading hotel operator > Generating 8% returns per annum, paid quarterly for up to 5 years, this limited and lucrative opportunity offers investors to participate from just £10,000 GBP. What we offer to investors: > Low entry from £10,000 GBP - total fund raise £1.33M > Flexible terms - invest from 1-5 years > ROI of 8% pa - paid quarterly > Additional exit premium of 10% at end of term > Completely asset backed with security in excess of £1.3M > Security assured by First Legal Charge over the Hotel and Loan Note Structure > Assured exit strategy utilising profits from this already ready-operational hotel > Funds received into Security Trustee Escrow Account > Both Corporate and Personal investments accepted > Profitable hotel operation to include one of the worlds best hotel operators > Additional benefits: Privileged access to future offers and VIP discount programme > Grade II listed English Heritage building steeped in history of well over 350+ years > 60+ Events each year with average spend of £3000 > New family focused restaurant with seating for 50+ clients. > 45 Minute DIRECT train link to London St Pancras for more info contact us at Malaysia: +60108106717 Singapore: +6584905344 WhatsApp: +60108106717 Wechat ID: Corwin-Lim Email: [email protected] |
CORWIN GROUPOfficial Corwin Group Archives
October 2018
CategoriesBy submitting this form, you provide consent for Corwin Group to email you occasionally with industry news and promotions. You may unsubscribe from these emails at any time.Testimonials & Disclaimer
Important Disclosure:
By visiting this site, you agree to be bound by CorwinGroup’s Terms of Use and Privacy Policy. CorwinGroup.com is intended for accredited investors and otherwise qualified investors who understand and accept the risk associated with private investments. Investing in private investments on CorwinGroup involves risks, including, but not limited to market and industry risks, risks related to a specific property, currency fluctuation risk and liquidity constraints. Investments are not bank deposits and are not guaranteed. There is a potential for loss of part or ALL of the investment capital. CorwinGroup does not endorse any of the opportunities that appear on the site, nor does it make any recommendations regarding the appropriateness of particular opportunities for any investor. No correspondence or information provided on CorwinGroup.com or by any representative of CorwinGroup should be construed as a recommendation of a security. Each investor is advised to conduct his/her own due diligence as CorwinGroup does not provide any investment advice, business advice, or tax or legal advice. CorwinGroup is not registered under the Securities & Futures Act or the Financial Advisor’s Act. Neither the Securities and Exchange Commission in the country nor any federal or state securities commission or any other regulatory authority has recommended or approved of the investment or the accuracy or inaccuracy of any of the information or materials provided by or through the website. Please read Corwin’s Terms of Use for more detailed terms and conditions to which users of CorwinGroup are subject. |