Folk2Folk targets money from collapsed platforms

Folk2Folk is gambling with the collapsed peer-to-peer lending platforms and has reaffirmed its commitment to retail investors.

The P2P commercial lender has said it is extending a “welcoming hand” to retail investors, at a time when other platforms have either closed completely or have focused on institutional funding.

“The new regulatory measures introduced in December 2019 and the Covid-19 pandemic presented fall or swim challenges for platforms,” Folk2Folk said in a blog post on its website. “Some have taken up the challenge successfully; others choose to change models to stay afloat.

He cited a number of platforms that have closed, such as Orca and Growth Street.

He also noted that RateSetter has closed its doors to new retail investors following its acquisition by Metro Bank, while Funding Circle and LendingCrowd have both suspended retail lending while participating in the loan disruption program. coronavirus activity (CBILS).

Folk2Folk said retail investors on these platforms should shop around and highlighted the benefits of P2P lending as part of a balanced investment portfolio.

“We would say that platforms like Folk2Folk, which offer a fixed interest rate of 6.5% per annum and guarantee the investment against the tangible assets of the land or property, are certainly worth a look,” Folk2Folk said in a blog on his website. .

“While other platforms have left their retail investors adrift, we are reaching out to them. 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, in particular investing their ISA allocation of £ 20,000 for the current fiscal year 2020/2021 by midnight on April 5.

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