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Peer2Peer Finance News | July 27, 2017

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Warhol prints and football clubs – the most unusual P2P investments revealed

Warhol prints and football clubs – the most unusual P2P investments revealed
Kathryn Gaw

PEER TO PEER investors are now profiting from modern art, football clubs, farming and marinas, according to new data from 4thWay.

The P2P ratings agency has revealed five of the most unusual investments across more than 15 platforms, and found that the average lender was able to access the sort of investments that would normally be reserved for the super-rich.

Over the past year, investors on the Unbolted platform have been able to earn 9.4 per cent in interest by lending against famous pop artists such as Andy Warhol, Roy Lichtenstein, Joan Miro and Jean-Michael Basquait. These artworks were used as security in a single loan worth £73,748.

Meanwhile, football fans have been able to make 12 per cent in interest by funding a £750,850 loan to a League One football club via MoneyThing.

Read more: MoneyThing posts record month ahead of 2017 IFISA launch

At FundingSecure, lenders have been making 13 per cent by funding a Lanarkshire farm, and similar returns are being made at HNW Lending, where investors can fund a £199,601 loan which has been secured against a house in Florida and art by Peter Howson and Frank McFadden.

Over the past year, the Proplend platform has also featured a £675,000 loan against a Welsh marina, which boasts nearly 150 berths, a boatyard, an office and a facilities block.

“Individuals and businesses can borrow and invest in ways they couldn’t before, since traditional lenders struggle to assess unique types of loans and security and unusual asset classes which were the preserve of the super-rich,” said Neil Faulkner, co-founder and managing director of 4thWay. “Investors can earn well above inflation with the current peer-to-peer lending opportunities available on the market. The rates are high at least in part due to the risks of borrowers being unable to repay these kinds of loans, but with very solid security valued by experts and some reserve fund provisions, the risks of losing money are greatly reduced.”

Read more: P2P lenders move towards niche assets

In all of these cases, the property or assets are used as security against the total loan value, and so the assets would only revert to creditors in the event of a default. At the time of writing, all loan payments were up to date as scheduled.