How do I decide Which platforms to choose?

How do I decide which investment is best for me?

This is a personal decision, as we see from typical industry investors, they see P2P as an interesting alternative to traditional means of investing, i.e. high street banks and stocks & shares. The rate of return is significantly higher in the region 5% per annum interest (industry avg), compared to lowly rates sub 2% from most banks, and the outcome is socially beneficial; you are lending to a person or small business that is in need of funds. You are making a difference!

As an investor there are a few critical factors you should consider before investing money:

Important Factors: What you need to know:
Rate of return

Rates can be achieved in a range 3-18%, depending on the product and risk profile. 5% is understood to be a typical rate for a five year investment in P2P lending.


P2P is not covered by the FSCS despite being regulated by the FCA. There is a risk you could lose your money. Platforms mitigate this with security procedures:

  • Asset security - if a borrower defaults, their assets will be sold to cover the debt
  • Provision fund – P2P lenders may have a store of funds to cover repayment defaults
  • Strict lending criteria - thorough due diligence will be conducted on all loan recipients
  • Diversified loan - many platforms split an investor’s loan across a number of borrowers to reduce risk of default
Default Rate

The industry standard default rate is below 2%, but you should still check the individual default rates of each respective platform in our comparison table before investing.