Crowd2Fund is out with a note on platform performance. The UK peer to peer debt platform states that current default levels stand at 1.42% and their best case model APR standing at 8.51%. The crowdfunding platform says the current worst-case model, which assumes all defaults are written off, generates a return of 6.47%.
Crowd2Fund has posted a loan book performance page on their site that tracks overall portfolio performance.
The company says the FCA report recommending peer-to-peer debt platforms should release more information about associated risks and how they are manage reflects something that Crowd2Fund has been practicing over their four years of operation.
Crowd2Fund claims that these statistics indicate they are outperforming their competitors. Crowd2Fund says it is confident that by combining their historic trading data with their new approach to modeling scenarios will continue to generate low defaults and an increasingly predictable pattern of high returns.
Unlike most other leading peer-to-peer and debt crowdfunding platforms, Crowd2Fund investors are able to pick and choose the companies they lend funds to directly. Many peer to peer lenders used to incorporate a direct lending approach, but over the last 18 months have moved away from this model to a pooled method. This approach requires investors to lend money to an anonymous group of different companies.
Crowd2Fund says they believe that one of the reasons they are able to provide a higher rate of return to investors is their approach of “empowering users to trust their own judgement to build their own bespoke portfolios, with full visibility on where funds are being placed.”
New investments can be sourced from either primary campaigns or on “The Exchange” their secondary market.
To date, £24.5 million of loans have been issued to businesses on Crowd2Fund, with investors receiving £1.49 million in interest payments.