Peer-to-peer business lender Crowd2Fund has reported net earnings of 38.51 per cent for its investors, between 2015 and 1 November 2021, in the latest deep dive of the platform’s loan book data.
Crowd2Fund calculated the overall net earnings by taking cumulative interest and dividing it by the loan book balance.
According to the platform, if an investor had placed £10,000 equally in every loan or revenue loan listed since the platform launched in 2015, they would have earned £4,198 tax-free before defaults and recoveries, but after written off and fees.
On an annualised basis, Crowd2Fund has returned an average of 5.98 per cent to its investors since 2015.
However, annualised earnings for 2021 are set to fall below the 5.98 per cent average. As at 1 November 2021, Crowd2Fund has delivered net earnings of 3.42 per cent for investors.
In 2020, net earnings were 6.59 per cent – down from 7.58 per cent in 2019.
“Crowd2Fund empowers investors to build their own balanced portfolio and make personal investment decisions suited to them while also building a portfolio suited to their risk appetite,” the platform said in a blog.
“This crucially means that while our investors are able to make investment decisions that can help them earn up to 15 per cent APR tax free as a maximum, they are also, of course, subject to negative returns if they make poor investment choices.
“It’s important that risks are fully understood when making investments through Crowd2Fund, as with any other investment platform – this is where the compliance elements and insight of the platform is crucial.”