RATE OF RETURN4.5/5
TIME IN BUSINESS4.5/5
LAZY INVESTOR RATING4.8/5
- Safety - Skin in the Game – Kuflink invest 5% of their own capital into select-invest loans on a "first in, last out" basis which gives an extra layer of protection to investors.
- Property Secured with Good LTV's - loan-to-value numbers seem very resalable, which means that in the event of a default investors should be able to recover most of their investment.
- Detailed Loan Information - for select-invest loans there is very detailed information to help investors make an informed decision.
- No Provision Fund – However their "skin in the game" and their low loan LTV's go a long way to cover any possible defaults.
- Interest Paid Annually – on auto-invest accounts, you won't see your account grow until you've been invested for at least a year. On the select-invest account, interest is paid monthly.
- Smaller Loan Book - Kuflink seem to go for good quality loans, but that limits numbers.
Easy 6%- 7% Annual Returns Investing In Well Secured Property Loans – Kuflink Review, Cashback Links + ISA Info.
My Ongoing Lending Experiences with Kuflink & Monthly Returns Posted Below.
What is Kuflink?
Kuflink is a medium size Peer to Peer lender. Providing property secured bridging and development loans to businesses around the UK, they have a unique offering.
They were also the first platform in the UK to offer “skin in the game“, meaning they invest 5% of their own capital into every select-invest loan they offer, taking the first loss on any defaulted loans.
Kuflink are growing fast. With great customer service and a growing loan book, they have a unique offering. Kuflink also offer a secured ISA for possible tax free investing.
Kuflink benefited from the COVID19 situation in a big way. They are still bringing new loans to the platform en-mass, and they are still being filled relatively quickly. This shows that investors still trust Kuflink enough to invest with them. They picked up a lot of investment from other platforms throughout 2020 because of this.
Kuflink are going from strength to strength. It’s nice to see them doing well. They offer a fair return for the associated risk.
I have been investing with Kuflink for over 4 years now, and so far it has been a very positive experience. Even with the COVID pandemic, most loans have been paid back on time. Some were delayed of course but generally Kuflink handled everything well and came through the situation even stronger than they were before.
I have started to increase my investment with Kuflink again as you’ll see from the charts below. I will continue to do so moving forward.
Finding loans with the kind of LTV’s we can get with Kuflink, and the returns associated with them can be difficult elsewhere.
My Kuflink Strategy.
When the pandemic hit, I initially sold down just a few of the higher LTV loans on the secondary market, just for piece of mind as we didn’t know how bad this situation might get. Much of my capital stayed with Kuflink throughout the pandemic though. With the end in sight, I have decided to start once again to increase my investment with them significantly. I invest in almost all Self Select loans they bring to the table, and will continue to do so moving forward. Kuflink’s due diligence on borrowers is second to none, hence the extremely low default rates even thought the pandemic.
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The Obvious Investor – Easy-Info Table© – Kuflink Review
|Overall Rating*:||(4.6 / 5)|
|Who can invest:|
|Estimated Return:||5.0% to 7.2%
|Target Annual Return |
|My Calculated XIRR:|
|Risk Rating*:||3/10 - Low|
|Early Exit:||Yes. Secondary market.|
|Deposit Funds:||By bank transfer or debit card. Usually takes 24 - 48 hours for BACS. Can be same day for Faster payments.
International payments can be made through Wise.
|Lending To:||Agreements directly with borrowers|
|Loan Types:||Bridging Loans.|
|Default Rates:||Actual 2.25%.
No lender has lost capital.
|Loan Security:||Yes. Property with good LTV's. Typically below 75%|
|Provision Fund:||No. However offer "skin-in-the-game".
|Time to Invest:||Auto-Invest - almost instantly.
Select-Invest - varies, dependent on available loans.
|Time to Mange:||None (Auto-Invest).
|Payments Received:||Interest payment received annually on Auto-Invest loans, monthly on Select-Invest loans.|
|Amount Lent:||£63 million+|
|Number of Investors:||10,000+|
|Loan/Dflt Stats:||4%, but no investor has lost money to date.|
|Telephone:||01474 334499 (UK)|
|IFISA/IRA:||Yes: IFISA (Auto-Invest loans only)|
|Cashback**:||Yes! Up to £500 Cashback!
Learn More >>
|How to Sign Up**:||Sign Up Here!|
Kuflink Review – Overview
History – Kuflink Review
Kuflink’s Peer to Peer business was launched in May 2016 in Gravesend, Kent UK.
Kuflink’s property bridging division has operated for many years before launching their Peer to Peer platform, so the Kuflink team has a lot of experience beyond the time Kuflink has been in business.
In the time they have been offering Peer to Peer loans, Kuflink have lent over £120 million on over 650,000 investments. From over 10,000 investors with over £75 million already having been repaid.
More impressive is the fact that to date, no Kuflink investor has lost money.
Regulation – Kuflink Review
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.
Signup Process – Kuflink Review
Before you open an account with any Peer to Peer lender, it’s wise to use a cashback referral link to take advantage of any bonuses they are paying. This can increase your return on investment in the first year of investing substantially. Kuflink are usually paying one of the best cashback incentives in the business so definitely worth taking note of if you’re considering investing with them.
Opening an account with Kuflink is fairly easy. Just the usual ID and anti-money laundering checks.
If they can verify you though one of the UK’s credit agencies, you may be approved immediately. If not, you may need to send them a copy of your passport or driving license, and a utility bill or bank statement.
Residents of most countries can sign up with Kuflink if they can pass the ID checks. Kuflink say they accept investors worldwide.
A UK bank account is required to signup. If you don’t have a UK bank account, see my Wise 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 – Kuflink Review
Deposits can be made though a UK bank or an international bank account via Wise. Or from a UK issued debit card . Withdrawals are made by bank transfer from a UK bank or an international bank account via Wise .
Deposits usually show up in your account the same or next working day. Withdrawals typically take 2 – 3- business days.
Time to Become Invested
When investing in their auto-invest accounts, investment is typically very quick, it took my first investment a few minutes to get the funds distributed between loans.
With manual Select-Invest loans, the time is dependent on how much research you need to do on the individual loans, and how many loans are available.
Who are we lending to?
Kuflink is a true Peer to Peer 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. Kuflink just acts as a middle man, managing loans, payments and debt collection etc.
Loan Security – Kuflink Review
Kuflink only provide loans secured by property. The Loan to Value (LTV) ratios are typically very good, below 75%, I’ve invested in some at less than 30% LTV.
Loans are first or second legal charge on the properties the loan is against.
With an LTV of 30%, a property would need to lose more than 70% of it’s value before an investor would lose money. Then on top of that, Kuflink’s “skin-in-the-game” would take care of another 5%.
It’s easy to see why no Kuflink investor has lost money through defaults to date.
Kuflink’s website provides good information on the security of each property.
It is even possible to drill down and see the full valuation report, in the case of the property in this screenshot, the full report was 45 pages!
Amortization – Kuflink Review
Kuflink loans do not amortize, so only interest payments are received until the principle is paid back in a lump sum at the end of the loan period.
On Auto-Invest loans, interest is paid annually. With manual Select-Invest loans, interest is paid at the beginning of each month.
Selling Loans and Withdrawing Capital
Kuflink introduced its secondary market to the platform in 2019, so it is possible to sell loans to other investors if you would like to exit a loan early.
There is a 0.25% fee for selling loans which is really not bad if you need your capital quickly.
Remember though, Kuflink Loans are typically only 3 to 12 months on manual Select-Invest loans, and 12, 36 or 60 months terms on the Auto-Invest loans. So it’s not too long to wait if you don’t want to pay the exit fee.
Diversification – Kuflink Review
Auto-Invest loans are diversified automatically when you initially invest with Kuflink. Capital is spread between available loans in each loan portfolio.
In the screenshot below, you can see that I deposited £500 initially to test auto-invest back in 2018 and this was split equally between available loans. I mostly do Select Invest loans these days but the Auto-Invest is a good option if you just want a “fire & forget” investment.
Diversification on loans is typically fairly good with Kuflink Auto-Invest. Also because Kuflink have good loan security, and they invest 5% of their money into Auto-Invest loans on a first-loss basis, I’m comfortable with even less diversification with their Auto-Invest.
With manual Select-Invest loans, you obviously diversify your capital into loans manually so you can choose your own diversification strategy.
Provision Fund – Kuflink Review
There is no provision fund as such, however as mentioned previously, Kuflink invest 5% of their own money on a first loss basis into each loan. And with the low LTV’s, capital should always be recoverable. This seems to be the case as to date, Kuflink state that no lender has lost any capital.
They have had defaults though, (the rate they quote for the last 12 months is a little over 4%). Defaults don’t matter so much if funds can be recovered efficiently, and are to be expected with any type of lending.
Tax Free Innovative Finance ISA (IFISA) – Kuflink Review
Only Auto-Invest loans are available through the Kuflink ISA.
Website – Kuflink Review
Kuflink’s website is easy to use and provides good information for both auto-invest and select-invest accounts (only auto-invest for Kuflink ISA).
The Dashboard with your accounts and balances is displayed when you log in to the website.
On the auto-invest page, you can see rates available for the 12, 36 and 60 month loans, 5%, 6.1% and 7% respectively .
Simply choose your investment, and the amount you want to invest. Kuflink will then place the money on loan for your almost immediately. That’s it! If you don’t have the time to do the due diligence on manual select-invest loans, Auto-Invest is a good option, although the rates of return are a little lower.
As mentioned previously, something that is a little different with Kuflink to many other P2P lenders is that they pay interest annually on the auto-invest accounts, so you won’t see your account grow month by month. You’ll need to wait, then interest is added in a lump sum.
On select-invest loans there is a wealth of information available on Kuflink’s website.
The individual loans, terms and valuations are all available to help you make your decision on where to invest.
When you click on the “Available” loans page, you will see overview boxes giving you high-level information on loans.
Once you find a loan you are interested in, click on it to get in-depth detail on the loan.
You can also decide here if you would prefer to earn a little more by compounding the interest and receiving it all back at loan maturity. Or you can choose to receive interest payments monthly. The monthly option pays a little less as there is no compounding effect.
If you click on the side menu, you can page through all of the different detail for each loan.
If you decide to invest in a particular loan, just click on the “Invest Now” button & input the amount you would like to invest.
After that you will need to accept Kuflink’s terms & conditions and then finally hit the “Invest” button to confirm the investment.
Summary – Kuflink Review
My experience with Kuflink so far has been excellent.
Their low LTV’s are attractive, and because they invest into each loan themselves (skin-in-the-game), it means they will be extra careful about who they loan our hard earned money to. Evidenced by the fact that no investor has lost money to date out of the 650,000+ investments they have processed already.
I like Kuflink a lot and I intend to increase my lending account with them substantially moving forward. The safety they offer with better-than-average return rates are difficult to pass by. Plus the chance to use the Kuflink ISA for tax free investing is an added bonus.
Thumbs Up Points for Kuflink
Safety – Skin in the Game – Kuflink invest 5% of their own capital into select-invest loans on a “first in, last out” basis which gives an extra layer of protection to investors.
Property Secured with Good LTV’s – loan-to-value numbers seem very resalable, which means that in the event of a default investors should be able to recover most of their investment.
Auto-Invest –there are three auto-invest accounts if you don’t want to self select making investing hands off requiring very little time to maintain. These account pay very reasonable rates too!
Detailed Loan Information – for select-invest loans there is very detailed information to help investors make an informed decision.
Website – very easy to use and understand.
Diversification – with the auto-invest accounts Kuflink spread your investment over as many loans as possible helping you adhere to the “Prime Directive” and diversify your investment.
Low minimum investment – £100 to start. Minium investment per loan is “enough to earn 1p of interest”. If your portfolio is still small, it’s still easy to invest with Kuflink and still diversify over many loans.
Kuflink Cashback – If you’re a new investor to Kuflink, they typically have some of the best cashback bonuses. See below for current offers.
Financial Conduct Authority (FCA) – Regulated.
Kuflink ISA – Kuflink ISA available for tax free investing.
Thumbs Down Points for Kuflink
No Provision Fund – However their “skin in the game” and their low loan LTV’s go a long way to cover any possible defaults.
Smaller Company – with shorter track record.
Interest Paid Annually – on auto-invest accounts, you won’t see your account grow until you’ve been invested for at least a year. On the select-invest account, interest is paid monthly.
Smaller Loan Book – Kuflink seem to go for good quality loans, with good LTV’s. Their credit requirements are very strict. This means a smaller loan book for diversification purposes, however the loans they do have are safer than many loans found on other platforms.
Risk Factor – 3/10 – Low
Is Kuflink Safe? I consider Kuflink to be in the lower area of the risk scale.
Even taking in to consideration that loans are secured, and they have “skin in the game”, they are still a young but fast growing company.
I have enjoyed investing through Kuflink, and based on my experience thus far, I think they’ll go on to do great things. Their low LTV’s make them an enticing investment. TrustPilot reviews give them a great rating too which they certainly deserve.
Who Can Invest with Kuflink
Residents of most countries can invest with Kuflink if they have a U.K. bank account. Contact Kuflink for further information.
Kuflink Cashback Offers & Signup Links**
New Kuflink customers receive the following Kuflink cashback on an investment of £1000 or more when they use signup links from obviousinvestor.com. Must invest into loans within 14 days of first investment to qualify for cashback.
|£ 1,000.00 – £ 5,000.00||2.50%|
|£ 5,000.01 – £25,000.00||3.00%|
|£ 25,000.01 – £50,000.00||3.50%|
|£ 50,000.01 – £99,999.99||3.75%|
*Cashback capped at £4,000.
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Kuflink Promo Video
Disclaimers: This page is presented for informational purposes only. I am not a Financial Adviser and therefore not qualified to give financial advice. Please do your own research and make your own investment decisions. Do not make investment decisions based solely on the information presented on this website. * 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. ** 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 platforms 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 Portfolio Returns page which assets & platforms 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.
RATE OF RETURN
TIME IN BUSINESS
LAZY INVESTOR RATING
This page is presented for informational purposes only. I am not a Financial Adviser and therefore not qualified to give financial advice. Please do your own research and make your own investment decisions. Do not make investment decisions based solely on the information presented on this website.
* 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.
** 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 platforms 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 Portfolio Returns page which assets & platforms 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.