P2P offers opportunity to earn institutional-sized returns
Peer-to-peer lending offers retail investors the chance to earn institutional-sized returns, one platform chief has claimed.
Stephen Moss, managing director of Sourced Capital, noted that his platform is offering returns of 10 per cent per annum on any investments of £20,000 or below. For investments of £20,000 or more, the platform offers returns of 12 per cent.
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Double-digit returns have typically been available only to high-net-worth individuals and institutional investors, who have deeper pockets and can afford to diversify across a range of sectors.
Moss told Peer2Peer Finance News that one of the biggest attractions for Sourced investors is the ability to access higher returns without investing beyond their means. This is particularly true for those investors who are seeking to build their wealth or grow their pension, he said.
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“One of the big benefits of P2P platforms is that they offer retail investors the ability to get these returns and control more of the future that they’re looking to build,” Moss said.
“A lot of people use us for pension planning or investing to save for a particular thing.”
He pointed out that when compound interest is factored in, these returns can deliver even more value.
“Compound interest is such a powerful tool that most people don’t see,” he said. “Once they see how powerful it is, investing becomes almost an addiction.”
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