Growth Street Review
Updated May 2019 – Growth Street Review
How I Make Safe, Easy 5.3% Annual Returns Investing In Secure 30 Day Loans!
My Lending Experiences & Actual Investment Returns Published Monthly Below.
What is Growth Street?
With an easy to use website, and auto-investing as the only investment option, investors should find Growth Street a good option for storing 30 day accessible cash in a relativity safe investment with a very reasonable rate of return.
My Experience so far with Growth Street has been excellent. All you really need to do is deposit the capital, set the auto-invest switch and sit back and relax while your interest is created.
Of course there’s a little more to understand before you get to that part so read on to learn about my detailed personal lending experiences with Growth Street, as well as my investment strategy and long term view of the company.
My Growth Street Returns, Account Growth & Income Charts
The Obvious Investor – Easy-Info Table – Growth Street Review
Overall Rating*: (3.8 / 5) Who can invest: Estimated Return: 5.3% My Actual Return
5.3% My Calculated XIRR: 4.84% Risk Rating*: 3/10 - Low Early Exit: No, but only 30 day loans, so 30 day exit Min. Investment: £10 Deposit Funds: By bank transfer. Usually takes 24 - 48 hours for BACS. Can be same day for Faster payments. Auto-Invest: Yes Manual Invest: No Lending To: Agreement directly with borrowers. Loan Types: Short term (30 day) business credit lines & invoice financing Default Rates: Only 8 defaults to date. Loans Amortize: No. Loans are 30 days. Loan Security: Yes.
Loans secured by property, debentures
or personal guarantees
Provision Fund: Yes Time to Invest: Medium.
Can take a few days depending on loan availability
Time to Mange: None (auto-invest) Lender Fees: No Payments Received: When loan is fully repaid usually (30 days) Amount Lent: £460m + Number of Investors: 2,500+ Loan/Dflt Stats: Yes, Click Here Regulated: Yes: FCA Location: HQ - London, UK. Launched: July 2014 Website: www.growthstreet.co.uk Email: email@example.com Telephone: 0808 123 1231 (UK) IFISA/IRA: No. Cashback**: Yes! £200 - click here for more information. How to Sign Up**: Sign Up Here!
Growth Street – Overview
Growth Street were launched in 2014 in the UK.
In the 5 or so years they have been in business, they have found a niche in the short-term financing business. Providing a very reasonable 5.3% annual return, while only tying your money up for 30 days at a time.
This means, although there is no “quick access” account as there is with lenders such as Assetz Capital, Loanpad, RateSetter or Landbay, you can still always be sure to get your capital back within 30 days if you need it, and get 5.3% annual returns, instead of the 3%-4% offered by the other lenders short term accounts.
Personally I use Growth Street P2P as a store for money I may need in the future which I know I can get access to in 30 days or less. In my opinion, 5.3% interest is very good for an account that you can access in this amount of time.
Although Growth Street statistics are excellent. They haven’t had to deal with a major recession yet so only time will tell how they fair when that happens, but the fact that money is only tied up for is 30 days means if I feel things start to get dicey, I will just stop automatically reinvesting my money and have it all back in 30 days.
Current Growth Street statistics suggest that they have lent a total of £460 million from almost 2,500 investors (as of May 2019).
Growth Street P2P are regulated by the UK’s Financial Conduct Authority (FCA) with full permissions under FCA number 739318. They gained FCA permissions in March, 2018.
It’s important to note that the FCA is not the same as the FSCS (Financial Services Compensation Scheme), so capital is not protected as it would be in a bank.
Opening an account with Growth Street is fairly easy. Just the usual ID checks and anti-money laundering verification.
If they can verify you though one of the UK’s credit agencies, you will be approved quickly. If not, you may need to send them a copy of your passport or driving license, and a utility bill or bank statement.
It should still take no more than 24-48 hours to gain approval.
Residents of most countries can sign up with Growth Street, contact Growth Street for requirements for your specific location.
You will need a UK bank account, and possibly a UK telephone number.
If you don’t have a UK bank account, see my TransferWise Borderless Account review for more information on how it may be possible to get UK banking details even if you’re not a UK resident.
Deposits & Withdrawals – Growth Street Review
Deposits and Withdrawals are made by bank transfer from a UK bank. Debit card deposit is not available.
Deposits from your bank usually show up in your Growth Street account the same or next working day.
Withdrawals go to a registered and verified bank account, and typically take 1 – 3- business days.
Time to Become Invested
It can take a few days to get invested into loans with Growth Street. I’ve found it varies based on the amount of capital I am investing, as well as the loan book. As auto-invest is the only option, it’s just a case of waiting in line for your turn.
Sometimes capital is distributed almost immediately, however other times it has taken a couple of days. I’ve never known it to take more than 2 working days to become fully invested.
You can always see from the main screen dashboard how much is invested and how much is waiting to be invested (Money on market).
Who are we lending to?
Growth Street P2P is a true Peer to Peer Lender platform. Lenders are lending directly to borrowers, who are typically small to medium size British businesses.
Loan agreements are directly between the lender and the borrower. Growth Street just acts as a middle man, managing loans, payments and debt collection etc.
Loan Security – Growth Street Review
Most Growth Street loans are secured by business assets, invoice receivables and/or personal guarantees.
Unfortunately I don’t put much trust in invoice receivables as this is just passing the debt to another company who has the outstanding debt with the borrower.
Personal guarantees can be difficult to collect on (I prefer assets with low LTV’s). However as loans are typically only 30 days long, I don’t worry about it too much.
Growth street have had very few (single digit) defaults, and they also have a provision fund to cover losses on any unpaid loans.
As Growth Street loans are typically only for 30 days, the loans don’t amortize as they are paid back in full at the end of the loan term.
Selling Loans and Withdrawing Capital
It is not possible to exit Growth Street loans early. However because loans are typically only for 30 days, you are really only ever 30 days from being able to withdraw all of your capital.
If you set reinvestment to “Do not reinvest” per the screenshot below, you should then be able to gain access to all your capital within 30 days or less.
Once your capital is back in the holding account, you can enter the amount you want to withdraw, and it should then hit your bank within 1 to 3 working days.
Diversification – Growth Street Review
As you can see by my loan list below, when I first started investing with Growth Street, I stuck to my “Prime Directive” and diversified my loans manually.
Growth Street do diversify funds for you, however when I originally put my money on the market, I wanted even more diversification. So I manually broke it up in to £100 chunks to ensure diversification between a lot of loans.
Since I first started investing with Growth Street and diversified my loans per the screenshot above, I realized that a key benefit is Growth Street’s Loan Loss Provision Fund.
The Growth Street provision fund is designed to diversify risk automatically for all investors. This is done by collecting contributions from all borrowers, and using those funds to cover missed payments across the whole portfolio; so every investor is exposed to all loans on the platform, rather than just the loans to which they are directly matched.
This means it is not necessary to diversify into many different loans, as a single loan cannot go against a single investor. Now I know how it works, I won’t bother to break up funds as I add them moving forward.
Growth Street say they have had only 8 defaults in the time they have been in business, and they were all covered by their provision fund which is also a good sign that their strategies to protect lenders are working.
No retirement account options available with Growth Street. I couldn’t find anywhere that they are planning one either. If that changes, I will update the review accordingly.
Using the Website – Growth Street Review
The Growth Street website is very easy to use. When you first log in, you see a summary of your account.
There is only one “portfolio” or “option to lend”, so all you do once you’ve deposited funds is “Place a New Order to Lend”.
Enter how much you want to put on market, then hit the “Place Order” button. Simple as that!
It’s a good idea to set your reinvestment options to automatic so you don’t get cash drag when loans are repaid, because all of the principle and interest are paid back in 30 days.
If you don’t have reinvestment set to on, you will need to make sure you are monitoring the website most days to manually place the orders.
It is easy to see which loans you are invested in with the Growth Street website:
It is even possible to drill down and see individual loan agreements if you really want to.
However I don’t really see the point as there is not much information in them, and basically they all look the same.
Summary – Growth Street Review
Growth Street is a simple “set it and forget it” Peer to Peer lender. Their website is easy to use, and their loans are at the lower end of the risk scale.
The return for 30 day loans is very good. Once your funds are in the system, you can forget about them until you need to withdraw, in which case you’ll just need to cancel your reinvest options and wait around 30 days. I do check my lender account weekly, but it’s really not needed.
I like Growth Street as a way to have “reachable” capital in a reasonable amount of time, with a decent rate of return.
Thumbs Up Points for Growth Street
Safety – Growth Street are a medium size company with a good track record. They make short term loans, some of which are secured against personal guarantees, debentures or business assets. The Provision Fund is also a big plus.
Auto-Invest –very easy to invest, and hands off investing once set up.
Great Rates – 5.3% return for having only a 30 day withdrawal window.
Website – very easy to use and understand.
Large Investments –although Growth Street’s loan book is not as big as some other lenders. They still manage to gobble up large investments fairly well.
Low minimum investment – if your portfolio is still small, it’s still easy to invest with Growth Street. With just a £10 minimum investment to start.
Quick, no cost exit –although there is no “instant exit”, we can be fairly sure that we can get all of our money out in 30 days if we need it in normal market conditions.
Financial Conduct Authority (FCA) Regulated.
Thumbs Down Points for Growth Street
Investment Time – my funds are usually invested in a couple of days. However I have had to wait a little longer for larger amounts of capital. I’ve also noticed a couple of days cash drag on reinvestment at times.
Smaller loan book than some of the bigger players, but they are growing fast.
No ISA available for UK investors
Risk Factor – 3/10 – Low – Medium
Is Growth Street Safe? I consider Growth Street to be at the lower to medium end of the risk scale.
Taking in to consideration that many of its loans are secured, it’s hard not to give it a lower risk rating. However they are lending to businesses which are inherently more risky then lending to individuals.
I like Growth Street a lot and put a lot of trust in them. As you can see by the TrustPilot review above, so do many other people.
Who Can Invest with Growth Street
Offers & Signup Links**
New Customers receive £200 cashback when they join Growth Street and invest £5000 or more for 1 year using links here on obviousinvestor.com
Similar Lenders to Growth Street
Ready to Get Started Lending? Disclaimers: * My opinions on ratings and risk rating factors refer to my personal experiences with a company or account. Including factual data such as interest rates, loan types, security, platform history, default numbers etc. ** I’m not paid by any company to review them, nor am I employed by any of the companies I review. In most cases, I am actively investing my own personal capital through these companies which you can see with full transparency on my Lending Returns page. Some of the sign-up links on this website are referral links. When you click on these links, I may receive a small commission, at absolutely no cost to you. Your support helps me to run this website and continue to offer new reviews and portfolio updates. Please read my full website Disclaimer before making investment decisions.
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* My opinions on ratings and risk rating factors refer to my personal experiences with a company or account. Including factual data such as interest rates, loan types, security, platform history, default numbers etc.
** I’m not paid by any company to review them, nor am I employed by any of the companies I review. In most cases, I am actively investing my own personal capital through these companies which you can see with full transparency on my Lending Returns page. Some of the sign-up links on this website are referral links. When you click on these links, I may receive a small commission, at absolutely no cost to you. Your support helps me to run this website and continue to offer new reviews and portfolio updates.
Please read my full website Disclaimer before making investment decisions.