Niche Peer-To-Peer Lending Platforms Emerging
Peer-To-Peer (P2P) platforms fund a variety of projects, from business loans and invoices, to a wedding or buying a car. The opportunities are endless. CrowdProperty has announced its platform launch and gained interim permission from the FCA to operate, with a target goal of £20 million to be raised through private individuals in its first financial year.
CrowdProperty has stated its difference from other online platforms, in that the people behind the service are property experts. Founder and Director of CrowdProperty, Simon Zutshi has a high calibre background in property, creating the Property Investors Network with over 23,000 investor members. Another key difference is that the platform enables 100% of the project to be financed, the borrower does not need to have finance in place to begin the project, but rather as soon as the project is funded in full the project can begin. In an economy where growth is slow and rates of return are ever decreasing, the prospect of a 5 – 11% ROI per annum, depending on which investment option you choose is a good incentive to get involved in this new platform and the P2P economy at large.
Whilst gaining funding online is not new, the mission statement of this company perhaps emphasises the direction that the sector is heading in. The platform is created specifically for and limited to, financing property projects. This specialisation within the P2P market is key to how the market may move forward in the next few years. I think that we will see more and more specialisation occurring and just like crowdfunding, where specific sites are better for different types of projects, P2P platforms will follow suit. This trend has already started, however I think the continuing specialisation of the industry will continue to take hold in the next few years.
Are you interested in learning more about P2P and the high ROI’s you can gain through investing in this emerging asset class? Why not join us for the Peer To Peer Lending & Investment Briefing on 15th October 2014 in London to hear from three of the top UK online P2P platforms about how to take advantage of this lucrative sector. Download the brochure here.