Investors

on the rebuildingsociety.com blog

Our Investors blog category covers all the latest news, reviews and opinions related to the investors community.

24th Oct, 2017

Platform vs Lender Responsibilities

Search-Engine-Optimization-Analyst-Roles-Responsibilities-Companies-and-Salaries (1)If you’re new to peer-to-peer lending, you’ll be getting used to a whole new world of finance and investment which turns traditional finance methods on its head. Peer-to-peer lending brings a new level of transparency and practicality to managing your funds.

If you’re a peer-to-peer early adopter, you’ll no doubt be used to this new way of thinking and investing, but may be uncertain on a number of the intricacies of each platform or have doubts as to where responsibility lies on certain matters. Here, we take a look at platform vs lender responsibilities.
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11th Oct, 2017

Loan Profile – Key Risks

We’ve recently updated the layout and information displayed to lenders on each of the loan listing profiles. These changes have been made to make the information about each of the lending opportunities easier for you to digest and for you to make a more informed lending decision each time you choose to lend to a business.

The listing overview page will now be divided into four key sections, all visible on one page. These sections are ‘About the Business’, ‘About the Loan’, About the Risks’ and ‘About the Security’.

The most significant changes to the loan listing profile is the ‘About the Risks’ section. This is a brand-new addition to each listing. This section will not only show you the risk rating of the particular loan, by hovering over the risk rating you will be presented with the historic performance of other loans funded on the platform of the same rating. The historic performance will show the default rate as well as the bad debt rate of all loans of the same rating.

About the risk - Default

Why is this information important to you?

As a lender, you need to make a decision on when to lend and which businesses you want to lend to. In order to make a more informed decision, you need to understand that regardless of the business or the rating assigned to it, there is a chance that the loan will fail. The Default and Bad debt rate indicate the past performance of similar loans, which you can take into account when lending.

About the risk - indicators

The second major change to the listing profile is the new addition of ‘Key Risk Indicators’. This section will highlight some of the key risks that we may have identified during our initial underwriting and screening process.

You can view a general description about each of the indicators by hovering over the indicator with your mouse. These indicators are made visible to help you in your lending decision by a) making you aware of risks you may have missed b) allowing you to investigate further and ask relevant questions. The key risks displayed are not necessarily the only risks associated with the business, simply those that we have identified.

Key Risk - Indicators - Hover

What should you do with the information?

Where key risks have been highlighted on a loan, this does not necessarily mean that you should not lend to the business, all lending carries risks.

You should use this information to help further your own analysis of the business, use it to ask your own questions of the business or use it to rule out the business as a loan for you. All loans that are listed on the platform have been through an initial assessment by ourselves and have met our standard lending criteria and have been deemed good enough to list on the platform for your further consideration. We provide lenders with a variety of lending opportunities to suite the breadth of different lenders on the platform, a loan listed on the marketplace is not an indication of a ‘safe loan’, it represents an opportunity for you to consider.

Secondary Market

 

All new loans listed on the primary market have been updated to include the new risks. We’re currently going through the secondary market and updating each loan profile, so that the key risk indicators will be visible on all loans that have already been funded, helping you make better secondary market purchases.


01st Sep, 2017

Changes to the Marketplace

Here at rebuildingsociety.com, we’ve been working hard to bring you a range of good quality borrowing applications for you to consider.

We are constantly reviewing and improving our processes to ensure that we both maintain and improve the variety of lending opportunities we can present to you.

We have recently changed the way our application process works, and this blog post is intended to notify lenders of our most recent change, along with how the change will affect the listing information presented for your consideration.
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01st Sep, 2017

Information is King

Communication-Networks-How-is-Information-Transmitted_referenceWhen we review applications from businesses we collect a large amount of information about the business, their directors and their performance. We try and make most of this information available to you so that you have as much information as possible to make a lending decision. Some information cannot be made available on the platform as it may contain sensitive personal information about the director.
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28th Jul, 2017

Defaults and Bad Debts

Save money and finance for banking conceptAs a lender on rebuildingsociety.com, you are lending to UK-based small- and medium-sized businesses. SMEs are vulnerable to many influences that can put a strain on their business and affect their ability to meet financial obligations, such as repaying a loan.

No matter how seasoned an investor you are or what your level of professional experience is, you are likely to incur a default within your portfolio at some point in time. If you are new to P2P lending, your first default is likely to come as a shock, and may tarnish your impression of P2P lending. However, you shouldn’t panic, as defaults are not unexpected and can be managed.

We’ve put together this blog to help you understand more about what a default is, why it may occur, how you can manage your risks, and how we work to protect you so that when a default does occur, you know what to expect.
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06th Jul, 2017

Voluntary Arrangements

rebsoc-footerAs part of our service to our lenders, we undertake recovery action and legal enforcement on defaulted loan accounts. This is done on your behalf with the intention of recovering your invested funds. At certain times during this recovery process, we endeavour to give lenders a role to shape our recovery action and have their say in the acceptance or rejection of any repayment offers we may receive.

Such occasions include the submission of an Individual Voluntary Arrangement (IVA) or Company Voluntary Arrangement (CVA). This blog post will look a little closer at both instruments and discuss what lenders may want to look for in assessing whether those arrangements may be in their interests.
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30th Jun, 2017

10 Tips on the Best Ways to Invest on P2P Lending Platforms

Having operated a P2P lending platform for over five years, we’ve seen many investment strategies and styles and would like to share some of these with you. However, firstly you should acknowledge that every investor’s risk appetite is different. As with any investment, it’s important that you consider the risks and your personal circumstances before making any investment. The following tips are intended to educate and provide non-personalised guidance to assist.
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31st May, 2017

Make P2P Lending Work For You

Apply-for-a-loanWhether you are new to peer-to-business lending or are a seasoned professional, you should regularly consider whether your lending strategy is working for you. We’ve put together a short list of things you should consider as a peer to business lender not only on rebuidlingsociety.com, but across other platforms too?
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27th Feb, 2017

Full FCA Authorisation

rebuildingsociety.com has been awarded full authorisation from the Financial Conduct Authority in recognition of our compliance with sector-specific regulations.

We are very excited to share news of this major achievement and important milestone with our community. Authorisation means that we meet the rigorous standards set by the FCA and that we can soon start to offer the Innovative Finance ISA.

Financial Conduct Authority

 

 

Although we have been operating under FCA rules on Interim Permission since April 2014, being granted full authorisation helps us to continue building on the important relationships of trust we have with all our clients. We are proud to have achieved this milestone ahead of many other platforms, which we believe is testament to our small but dynamic team, systems, processes and controls.

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