Best Peer to Peer Lenders For An Economic Downturn

List Updated March 1st 2021

Which Peer to Peer lenders are the best? 

“Best” means different things to different people, so to be clear, this is about which lenders I believe my capital will be safest with, and still produce reasonable returns even through a severe downturn in the economy as just occurred. All of these lenders came through the COVID19 pandemic. Not without problems, but they made it, and I believe they are all stronger for it. Let’s face it, if there are still around after the once-in-a-lifetime (I hope) pandemic with their heads still above water, they should be pretty strong.

Below I list the lenders I am increasing capital with as we move forward. I consider these to be my Top Peer to Peer lenders. 

Disclaimer:

The information below is comprised of my opinions on Peer to Peer lenders. It also contains data on how I am investing capital for informational purposes only. It should not in any way be construed as financial advice or suggestion on where you should invest. Please do your own research before making investment decisions and do not base them solely on what you read on this website. Please read my full disclaimer of more information.

Kuflink

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Kuflink Review

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Why is Kuflink on this list?

Kuflink have short to medium term (6 to 18 month) development loans with generally very reasonable LTV’s. Although the secondary (loan resale) market became very active when the COVID-19 panic first hit, they did not have any kind of liquidity problems as some other lenders did because the company (Kuflink) does not offer liquid “instant access” type accounts . Therefore lenders must wait to get their capital if they can’t sell loans on the secondary market. This turned out to be a benefit for Kuflink as they are not subject to a bank run as other lenders are. Auto-invest portfolios came to term normally and capital was returned to investors (where requested).

Kuflink is still bringing new loans to the platform, and they are still being filled (although a little slower than normal). This shows that investors still trust Kuflink enough to invest with them.

My Kuflink Strategy.

I started to increase my investment in Kuflink and continue to do so moving forward. I invest £500 in deals with LTVs over 50%, and £1000 in loans with LTVs under 50%. I’ll keep adding capital as needed to meet this strategy until my total investment gets to a level I’m not comfortable exceeding.

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Loanpad

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Loanpad Review

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Why is Loanpad on this list?

Loanpad offer property secured loans, all with very low LTV’s (all below 50%, and many between 5% and 15%). These kinds of LTV’s mean even if UK property values take a huge nosedive because of the recession, even in the event of a default, lenders would probably get their capital back. In the course of the COVID-19 panic, Loanpad, although a smaller company, survived and fulfilled capital withdrawal requests even from their “Classic” instant access account without having to declare a “Liquidity Event” and suspend capital withdrawals. This is a huge plus for Loanpad and tells me there are a stable company that are here to stay. 

My Loanpad Strategy.

I’ve started to increase my investment with Loanpad (it all goes into the Premium 60 Day Access Account). Although it only pays 4% currently, that sounds pretty good compared to other options which are as safe as Loanpad

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CrowdProperty

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CrowdProperty Review

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Why is CrowdProperty on this list?

CrowdProperty offer property secured development loans, all with first legal charge and reasonable LTV’s . I feel like the loans they have are well vetted and some of the safer development loans. In the last few weeks of the COVID-19 panic, new CrowdProperty loans have still been getting funded in a few minutes of being launched. These are large loans worth hundreds of thousands of pounds. This tells me that, even with panic and investors trying to withdraw capital from other platforms, CrowdProperty are still getting increased investment. This bodes well for sustainability moving forward. 

My CrowdProperty Strategy.

I have started to increase with CrowdProperty. I invest £500 into each project when I can be near the computer when loans are released for investment. 

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Assetz Capital

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Assetz Capital Review

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Why is Assetz Capital on this list?

In short, Assetz Capital felt the full force of the COVID pandemic and came through it. They adjusted their business after investors started to pull out capital and made it work.

I  had invested with Assetz Capital for several years before the pandemic and was very happy with my investments there. When the pandemic hit, Assetz had some liquidity issues with their Access Accounts which caused concern. After coming through the Covid19 crises, Assetz Capital are finally getting back to normal. Their Access Accounts proved challenging during the pandemic as investors started to pull out their capital very fast causing problems with liquidity. Assetz implemented a discount strategy for the Access Accounts which allowed investors to return their cash by giving other investors the opportunity to buy loans at (sometimes) substantial discounts. Everything seems to be almost back to normal now with capital withdrawable from the Access accounts now almost immediately. The fact that Assetz Capital was able to weather the storm says to me that they are here to stay. 

My Assetz Capital Strategy.

I’ve decided now to start increasing my investment again with Assetz Capital again. They proved that not only can they come through a once-in-a-lifetime pandemic, but they area able to adapt to dire situations and protect their investors capital. I admit I did have some disappointments and concerns when the pandemic first hit, but Assetz proved their worth, & I’m happy & comfortable to be increasing my investment with them again significantly.

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Unbolted

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Unbolted Review

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Why is Unbolted on this list?

Unbolted offer pawnshop style loans to the general public with very liquid assets. These types of assets can be sold very quickly upon default. Pawnshops typically do better in recessions than they do in times of prosperity as people will borrow against personal assets when they are unable to get an unsecured personal loans. LTV’s are usually very low as defaults can be high so pawnshops need to make sure they can always recoup capital.  I have been lending with Unbolted for a couple of years now, and although there have been many defaults, assets have always sold at more than the outstanding loan principle and I have always been paid back both principle and interest very quickly. Loans are short to medium term in nature so a complete exit can be had by turning off auto-invest within 3 to 12 months.

My Unbolted Strategy. 

I’ll keep investing with Unbolted as normal as I expect them to be one of the most lucrative investments throughout a recession. Of course I’ll keep an eye on things and this strategy could change at any time. There have been problems with cash drag with Unbolted. There are a lot of investors trying to get in, but not so many loans. So, if you decide to invest with Unbolted, be aware of this.

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Disclaimers:

* My opinions, reviews, star ratings and risk ratings are based on my personal investing experience with the company being reviewed. These ratings are personal opinions and are subjective. You should do your own research before investing any capital and not base investments solely on the opinions published on this site. 

**  Some of the links on this website are affiliate referral links. When you click on these links, I can sometimes receive a commission, at absolutely no cost to you. This helps me to continue to offer new reviews and monthly portfolio updates here on my website. I don’t receive commissions from all lenders and it has no effect on my ongoing opinions on lenders. Income on my investments and capital preservation are my main motivations.

Platforms reviewed on this website I am currently investing with, or I have invested with in the past. You can see with full transparency on my Lending Portfolio Returns page which lenders I am invested with (or have previously been invested with) at any point in time. I am not paid a fee by any of the companies to write reviews, so the reviews are unbiased and purely based on my own personal experiences.

Please read my full website Disclaimer before making investment decisions.

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