Investments

on the rebuildingsociety.com blog

24th Jun, 2019

What our lenders say about us…

Founded in 2012 we’re one of the longest standing P2P platforms in the UK. We’ve seen a lot of change in the industry, we’ve been through the painful journey of becoming regulated and have gone through a full cycle of our loan book.

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01st Feb, 2019

Sourced Becomes the Newest P2P Lending Platform on the Block

We’re proud to announce that Sourced* have recently been approved as our newest appointed representative launching their property-focused peer-to-peer lending platform exclusively for High Net Worth and Sophisticated Investors.

Sourced are managed by a team of highly experienced property investors and developers with extensive experience in finance and in P2P lending. Having previously operated as one of the largest property sourcing networks in the UK, as a registered member of the Property Redress Scheme, the team at Sourced are now broadening their business offerings by allowing HNW and Sophisticated investors to fund property development projects through their network of franchisees. Sourced have a strong focus on educating lenders on investing in property generally as well as lending and investing in property via their P2P platform.

Sourced Directors from the front: Stephen Moss, Paul Rose, Chris Kirkwood, Ryan Brown

Sourced will offer bridge-lending opportunities, secured on property and will typically offer loan terms of between 12 and 24 months.

We have worked closely with the team at Sourced over the last few months to ensure that they meet the regulatory standards required by the FCA to operate a P2P platform. We’re excited to be working with them and helping them along the way.

Daniel Rajkumar says “

“Our Appointed Representative solution gives platforms the opportunity to operate as authorised platforms, by working in collaboration with rebuildingsociety.com, an FCA-authorised company and Network Principal who takes responsibility for overseeing and monitoring compliance activity.”

Meet the Directors

Stephen is the founder of Sourced and its Managing Director. He is a serial entrepreneur having founded and successfully exited a number of other businesses, including the franchise business Legal for Landlords. He is a vastly experienced property investor, sourcer and developer having worked in the property industry for over 15 years.

Ryan is a co-founder of Sourced and its Finance Director. He is a member of the Institute of Chartered Accountants in England and Wales and an Approved Person with the FCA. He has worked for international businesses, including within the SAAS, FinTech and Property industries.

Paul is a co-founder of Sourced and its Property Director. He is a greatly experienced property professional having been an owner/manager of a sales and lettings business. He has operated in the property sector for over 10 years, building and managing a successful property portfolio.

Chris is the Training and Development Director at Sourced. He is a fully certified NLP trainer and has a wealth of property experience. He successfully founded, grew and exited a service business for 10 years and is a property mentor to a network of property professionals.

Only Sourced’s P2P Lending activity will be overseen by rebuildingsociety.com as their network principal.

Appointed Representative Offering

The full authorisation journey can take months or even years, the AR process is a shorter procedure which can be completed in under eight weeks.

We are taking this opportunity to establish ourselves as a reliable, experienced Network Principal and assist other platforms in getting to market, whilst maintaining our position as a P2B platform in our own right. Read more about the Appointed Representatives service we offer here.  

 

Find out more about Sourced by clicking on the logo below. 

 

* Sourced is a trading name of Jark-1 Limited.


28th Jan, 2019

Dashboard Changes – Lender Performance Charts

We’re making changes to the look and feel of the website. One of the areas that you’ve told us you want to see change, is the lender dashboard. You’ve told us that you would like a more visual representation of your investments and use of the platform. We’ve been listening and have started implementing some changes.

You may have noticed the recent addition of the ‘Net Worth’ Chart on your lender dashboard. This helps you quickly interpret your performance throughout your time on rebuildingsociety.com. Let’s review the new chart and see what it shows us…

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11th Jan, 2019

What is an ISA Account?

We know that many of you are already savvy investors and many savers know about ISAs. However, our lender base is made up of a variety of different people with varying levels of experience and understanding, so we thought we’d write a short informative piece on ISAs to help answer any questions our lenders might have.

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06th Nov, 2018

Festive Preparation for Your Business

With the Bonfire smoke clearing and the sound of fireworks still ringing, in our ears many people now turn to Christmas preparation and celebrations. Whilst the upcoming festive season brings with it plenty of fun and reasons for celebrations, it is often a challenging time for business owners, particularly if planning hasn’t been done to ensure business continues as normal through this disruptive period.

We’ve put together a list of tips to help you ensure that you make the necessary arrangements to avoid disruption to service or unexpected issues during the festive period and to ensure that you set your business up for the best possible start to 2019!
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15th Oct, 2018

Investing money selectively is one of the best ways to invest

Many people don’t trust themselves to invest (or lend) so they leave it to others. Independent Financial Advisers can be helpful with advising on a range of customers about their options, relevant to their circumstances.

We believe, that with little study and research, anyone can learn the basic investment skills, to understand risk and reward. One of the things our lenders love is receiving interest payments each month. Many investments don’t pay interest monthly, but the borrowers using our platform repay their loan on a Direct Debit. So as you collect this repayment onto your online balance, you can re-lend them to other businesses. This is known as compounding. (Where you can earn interest on previous interest earnings).

Many other platforms will encourage you to be passive about investing, offering little information about the businesses. They sell their service on ease, but they also tend to pay out less. By making a little effort, you can earn considerably more. We’ll show you how, but before we do, have a look at the evidence.

Here is a histogram of Net Returns for lenders as at October 12th 2018. (a live version is on our stats page, under the Net Returns tab)

Net Returns histogram for rebuildingsociety.com

From this chart, you can see the green line peaks from the 3-4% segment and continues to be high until the 9-10% segment. This shows how most lenders are earning between 3% and 10%, but notice how 85 lenders are earning over 20% (on the far right). This article explains how they do it, so you can learn from their investment strategies.

Invest your money the savvy way

Read our 10 tips on peer to peer lending – This article covers some key guidance on strategies that have proven to work.

Understanding how your portfolio matures is important. With any platform, there’s a honeymoon period for newbies, but there’s also a hard phase around year’s 2-4 where you have sustained your first defaults but not had any recoveries. In this article, Kylie writes about various phases in the journey to mature investing. It’s a good read.

Many happy returns

When you see a business with a unique idea or product, take a minute to consider who their target customers are. If you know anyone suitable, why not buy them a gift or simply make a referral. Word of mouth marketing is so powerful. Sometimes a new customer can make the difference to a business surviving. This is especially true of seasonal businesses, where they may be vulnerable out of season. Like the facebook page, follow them on Twitter, share the videos, be an ambassador for your borrowers, they will love you for it.

Getting good at investing is addictive

Did you know one of our top lenders retired early to invest full time on our platform? Gross earnings are shown below, (from a peak capital employed of: £624,000). Being smart about peer-to-business lending allowed them to earn more in interest than most people’s salary!

  • 2013 – (the first year was a part-year) – £23,945.89
  • 2014 – £99,259.85
  • 2015 – £84,114.08
  • 2016 – £106,923.64
  • 2017 – £119,534.66
  • 2018 – £75,884.59 (part year until the 12th October)

It has not all been rosy, over the six years this lender has also had a £105,562.93 loss from bad and doubtful debt. So their profit is £509,662.71 – £105,562.93 = £404,099.78 before fees and taxes.

This lender has an average weighted Net Return of 12.74%, by being diligent about lending decisions, they can support a great standard of living from a few hours work each day.

Notice also how 33 lenders (on the far left) have a Net Return of < -20%. It is possible to lose money if you are not careful. Investing for higher returns carries some risks. For example, lending to inexperienced business people, a business you don’t understand, offering little security on the loan, is not a good idea. Notice that the red line (lenders who invest over £5,000) and the blue line (lenders with more than 10 loans).

Understand the Risks

The above figures are taken from actual lenders from rebuildingsociety.com during various stages of their investment history with the platform. Remember that past returns are not indicative of future returns and your own experience may vary.

If you are unfamiliar with the risks of peer-to-peer lending, read more here.

Overall, our past performance has been good for most lenders, but that could change. For example in an economic downturn, not all businesses will survive.

The best way to learn is by doing, open an account today to get started, you can try lending from as little as £10 on each loan.

To learn more about lending visit our Lender Library.


16th Aug, 2018

Peer-to-business Lending – It’s a Journey Not a Destination

If you’re new to peer -to-business lending you might be wondering what you’re in for, if you’re a seasoned P2B lender, you may by now understand the various processes and cycles involved in lending to businesses.

As a platform we’ve been facilitating lending to UK SMEs for over 6 years and have noticed certain trends in lender and borrower activity. We thought it might be useful to give you an insight into what you might expect as a lender. (more…)


31st Jul, 2018

Transparency Matters

Peer-to business lending started out with the ambition to be better than the banks, by being more open and transparent, more ethical, more dynamic and better for businesses and lenders alike. Since the early days of the industry, we’ve seen platforms come and go and there have been many changes to the way in which platforms operate.

Many platforms started off as marketplace lenders, arguably the most transparent of the P2P models, but over time many platforms have changed their models, today few platforms still offer real marketplace lending, and even fewer offer the level of transparency on which the industry built its foundations.

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15th May, 2018

Yorkshire Post Speak with Our NED Investment Director About Working as a Non-Executive Director

A recent article in the Yorkshire Post, featured Georgina Mitchell, our NED Investment Director and explored how one becomes a Non-executive Director and what the job entails.

Georgina, previously of Redmayne-Bentley, completed the Financial Times Non-Executive Director Diploma in her journey to becoming a NED.

In the article, Georgina discusses her passion for business and her journey to becoming a non-exec at rebuildingsociety.com, investUp and her plans to launch a commercial coaching group and peer board with Uspire Network. 

Through her engagement with Yorkshire businesses, Georgina has become quite involved within the FinTech circles, having recently delivered a talk at the annual FinTech North Conference in Leeds and will be delivering a further talk at the inaugural FinTech North Manchester event on the 22nd May.

 


08th Jan, 2015

Self-Assessment Tax Return Deadline

With the festive season behind us, many self-employed professionals will be turning their attention towards the looming deadline for self-assessment tax returns. This deadline, however, is also applicable to members of the rebuildingsociety.com who are earning money from their investments.

The deadline for online tax returns for the 2013-2014 financial year is midnight on 31 January 2015. An automatic penalty of £100 will be incurred for late returns (even if you have no tax to pay) and continuously delayed returns could see penalties increase to as much as £1,600.

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