90pc of Sourced lenders reinvest with the platform
90 per cent of Sourced Capital investors reinvest with the platform once their original loan term has ended.
Stephen Moss, managing director of Sourced Capital, revealed that the peer-to-peer property lender initially attracts investors who are looking for short-term investment opportunities.
However, once they realise that they can earn double digit returns from the platform, the vast majority choose to reinvest.
“Over 90 per cent of people reinvest and a lot of that is down to the fact that they see it works,” said Moss.
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“Our average loan term is nine months. Our investors see the returns they can make over a nine-month period and they realise that they can get that again.”
Sourced is currently targeting returns of 10 per cent on deposits of £20,000 or less, and 12 per cent on deposits of £20,000 or more.
Moss added that Sourced Capital recently conducted a survey of its investors asking them why they invest.
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“One of the reasons is that we offer short term lending,” he said. “People use the platform as a way to park money in between projects or to set goals that they want to achieve personally.”
The survey found that many investors are also using the P2P lending platform to bolster their pension funds and build wealth.
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