Folk2Folk targets money from collapsed platforms
Folk2Folk is making a play for money from collapsed peer-to-peer lending platforms and has reaffirmed its commitment to retail investors.
The P2P business lender has said that it extends “a welcoming hand” to retail investors, at a time when other platforms have either closed entirely or pivoted their focus to institutional funding.
“Both the new regulatory measures introduced in December 2019 and the Covid-19 pandemic presented sink or swim challenges for platforms,” Folk2Folk said in a blog post on its website. “Some successfully rose to the challenge; others choose to change their model to stay afloat.”
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It cited a number of platforms that have wound down, such as Orca and Growth Street.
It also noted that RateSetter closed its doors to new retail investors following its acquisition by Metro Bank, while Funding Circle and LendingCrowd both paused retail lending while participating in the coronavirus business interruption loan scheme (CBILS).
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Folk2Folk said retail investors in these platforms should shop around and highlighted the benefits of P2P lending as part of a balanced investment portfolio.
“We’d argue that platforms like Folk2Folk, which offer a fixed interest rate of 6.5 per cent per annum and secure the investment against the tangible assets of land or property, are certainly worth a look,” Folk2Folk said in a blog on its website.
“While other platforms have cut their retail investors adrift, we extend a welcoming hand. We are open to retail investors and intend to remain so.”
The platform also urged investors to compare their options and consider transferring their IFISA, particularly investing their £20,000 ISA allowance for the current 2020/2021 tax year by midnight on 5 April.
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