Peer-to-peer company Proplend have announced they are reducing their minimum lending amount to £1000. This brings Proplend into line with other companies such as ThinCats, and should encourage more lenders onto the platform.
Here is the full press release:
PROPLEND REDUCES INVESTMENT MINIMUM TO £1,000
London, 26 May 2016: Proplend Ltd, the UK’s specialist in commercial property peer-to-peer lending and pioneer of the P2P Loan Tranche Model, are pleased to announce that they have reduced the minimum loan investment amount to £1,000 with immediate effect.
Proplend anticipates that the reduction from £5,000 to £1,000 will broaden their investor base through a lower entry level and enable existing investors to further diversify their investments on the platform.
To kick start the new £1,000 minimum investment, a limited number of £1,000 loan parts have been made immediately available on the Proplend Loan Exchange (PLE). Two of our previous loans, Newcastle Business Park and Croydon Office Block, offer investors returns from 5.93% to 9.75% pa (before fees, bad debts and taxes), across the three tranches. New loan investment opportunities will also be listed on the platform in the coming weeks.
Brian Bartaby, Founder & CEO, commented: “This change has been primarily driven by investor demand. We were being approached by lenders who were very attracted to the stable returns offered from investing in commercial property backed P2P loans through the Proplend platform, but who found the initial investment level of £5,000 too high. Separately, we were also conscious that looking forward to investing within an ISA wrapper, the £5,000 minimum investment level would not offer investors an acceptable level of portfolio diversification. We look forward to welcoming a broader base of investors to Proplend and will continue to offer them attractive rates of asset-backed, risk-adjusted returns.”
Moving forward, all new loans will be split into £1,000 loan parts. Investors can access attractive rates of risk-adjusted returns from as little as £1,000 and thereafter in £1,000 increments. The maximum investment in any particular loan is limited only by the amount remaining; loans vary in size, loan to value, term and location. Investors can choose, on a deal by deal basis, which loan to invest into and then which loan-to-value based tranche of that loan.
Proplend is an online marketplace for secured commercial mortgages, where all the loans are supported by a registered legal first charge on an income producing commercial property. Proplend makes it possible for interest rates being offered by borrowers to be earned directly by lenders, circumventing the traditional banking system and creating a new asset class. Proplend allows private individuals and institutions direct access to commercial real estate lending opportunities. Borrowers gain access to funding which is not otherwise currently available and lenders get the opportunity to earn risk adjusted monthly income.
Proplend’s simple, secure and transparent platform connects investors directly to borrowers with loans secured against UK income producing Commercial Property. Proplend is dedicated to transparency and always ensures that investors have all the information they require to make informed investment decisions. Investors lend on a deal by deal basis, choosing their Loan Investments from Loans listed on the Proplend Loan Exchange or Loans In Funding. Proplend was the first UK peer-to-peer lending platform to offer different loans tranches, giving investors the ability to select a level based on their risk and return profile. To learn more visit www.proplend.com.
Guest speakers from all over the world, including the co-founder of LendIt Conference Jason Jones and leaders of top P2P lending companies in the three Baltic states – Bondora (Oliver Reinsalu), Mintos (Martins Sulte) and SAVY (Vytautas Zabulis), among others, will all be participating in the conference.
A number of highly anticipated panel discussions are also on the agenda and it will touch some important topics related to the prospects, challenges and trends for Alternative Financing both on a local and global scale.
With a sizeable atendance this conference is also being broadcast live and can be watched on YouTube.
With more and more consumers looking at investing and borrowing using P2P platforms, we’re in the process of displaying independent P2P reviews here on the P2P money website. This is the first review syndication within the P2P space.
Mike Fotis, founder of Smart Money People said, “Since we launched in 2014, our mission has been to increase trust and transparency in financial services. We’ve become the leading site for independent banking reviews, and extending into the P2P industry will help us to decode this industry for many more consumers.”
To write a review, pick a company here and click the link.
Your reviews can help to better inform consumers and help to act as a self-regulating mechanism (something the FCA's consumer panel talks about as 'consumers as co-regulators').
Latvian based European peer-to-peer lending company TWINO will be allow lenders to choose their currency instead of requiring lenders to convert funds to Euros. They are facilitating this by hedging the currency. Read the in-depth conversation on the P2P Independent Forum.
Here is the statemeny from TWINO:
One of TWINO promises is that we protect investors from currency risk. Thus, while investing on TWINO you don’t need to worry about Polish Zloty, Danish Krone or Georgian Lari appreciating against euro, as every transaction on the platform is performed in EUR.
However, investors from the UK still face the risk of EUR appreciating against GBP, which might lower their returns. Therefore, next week we are planning to launch a major upgrade that will remove the currency risk for investors, who hold their investable assets in British Pounds, equalizing the benefits of investing on TWINO with Eurozone investors.
The functionality will allow investors to choose the currency that they want to invest in (either EUR or GBP), and every transaction on TWINO will be processed in the chosen currency (including deposits, withdrawals, investments, repayments, etc.).
We will provide a further notice when the new functionality launches, and will be reaching out to existing investors, asking if they want to convert their TWINO accounts to GBP.
We are glad to be the first platform in Continental Europe to provide such functionality and hope some of you will benefit from it!
Zopa's new products, which we recently reported, are now live. If lenders wish to use Zopa Access or Zopa Plus then they need to log-in to their account and update their relending preferences.
Here is the announcement from Zopa:
We are delighted to tell you that our three new lender products are now ready and waiting for you to use!
Simply log into My Zopa to see the new look lending pages. You now have the option to lend in the three new products: Zopa Access, Zopa Classic and Zopa Plus.
When you lend your money your capital is at risk and is not protected by the FSCS. Our risk statement has all the details.
If you have re-lending turned on then your monthly repayments will now automatically be recycled into Zopa Classic. If you want to begin lending in Zopa Access or Zopa Plus, simply update your funding preference to that product. You can either deposit new money into those products (remember you need at least £1,000 to start lending in Zopa Plus) or turn re-lending off and move your repayments over to your chosen product as they come in to your holding account.
Our award winning customer services team is on hand to support you with any queries you might have about getting started with the new lender products. You can also provide feedback on what you do and don't like about the new products by contacting our product team.
We look forward to hearing what you think!