Investors are more cautious during the current crisis, but there are still opportunities on the market for those looking for returns in a risky environment.
Following on from our last analysis on opportunities available within the peer-to-peer lending sector, here’s a look at some of the other platforms that retail investors can lend through during Covid-19.
Property investment platform CapitalStackers offers returns of around five per cent for its lowest-risk deals, up to 15 to 20 per cent for higher-risk projects.
Meanwhile, commercial property lender Proplend advertises returns ranging between five and 12 per cent per year. It reported a 7.95 per cent average return on capital for all platform loans during 2019.
There are other opportunities for people interested in property-backed P2P loans. Investors in LandlordInvest can earn between five to 12 per cent per annum while those lending in CrowdProperty can make up to eight per cent per year.
Bridging and development lender Kuflink advertises returns of up to 7.2 per cent per year.
Among the peer-to-peer business lenders, LendingCrowd offers investors the chance to earn between 4.2 per cent to 14.25 per cent and Folk2Folk’s returns range from 4.5 per cent to nine per cent per year.
Meanwhile, Money&Co, which has been focusing on music loans and litigation finance during the pandemic, offers investors a seven per cent target net yield.
Unbolted offers returns of up to 12 per cent per annum and ArchOver provides an average interest rate of 8.16 per cent per year.
All investments carry some degree of risk which is often correlated to the return. But with savings at record lows and stock market volatility, there is an opportunity for investors to diversify into P2P loans.