Beyond the returns
It is no secret that peer-to-peer lending returns have outperformed both the cash savings market and the stocks and shares market over the past five years. Despite unprecedented economic volatility, the average annual returns for P2P lending platforms have remained relatively constant at approximately seven per cent. This includes years when the stock market suffered double-digit losses.
As interest rates start to rise again, it is a good time to remember that P2P lending has always delivered consistent results.
In fact, since Kuflink’s P2P business was founded in 2016, investors have seen zero losses of capital and interest, while collecting returns of up to seven per cent, every year. The platform is currently targeting returns of up to 7.44 per cent with a minimum investment of just £100.
This consistency is one of the reasons why investors keep using P2P lending platforms such as Kuflink. But Paul Auger, head of products at Kuflink, believes that P2P investors typically want more than just market-beating returns.
“Kuflink and its investors are a family with mutually aligned interests,” says Auger. “Our purpose is to give people returns on their money where traditional avenues have failed. We are also helping a sector where the country requires a lot of investment to build homes due to the surging demand.”
To date, Kuflink has raised more than £225m to fund UK property – a sector which badly needs more funding. The ability to support the British economy and British businesses clearly appeals to investors. But they also want to invest their money with a company that listens.
Auger believes that Kuflink’s focus on excellent customer service has helped the platform to retain loyal investors.
“We are rated as excellent on TrustPilot and feel our surveys, along with live chats, telephone services and email facilities, help us pick up on areas we may need to improve to make our investor experience as wonderful as possible,” he says.
“Our investors always compliment our staff on how quickly they respond and the extra human touch that isn’t always available to them from other businesses. We are always open to suggestions for improvement, which we always try to implement.”
Kuflink also ensures that the investor journey is as transparent as possible, so that platform users can track the progress of their investments and see how their money is growing. Auger says that many investors have told him that they like to engage with the platform “as a hobby as well as an investment vehicle”. This has inspired Kuflink to go the extra mile to ensure that investors are getting everything that they need from the platform.
Ultimately, this means “security, diversification and a proven track record,” says Auger. Not just higher returns.
“P2P has slowly been gaining popularity over the years, mainly due to the security and returns offered to our investors,” he adds. “Platforms such as ours, are popular with investors as our offering is asset backed and we have a proven track record in challenging times as well as the good times.
“We believe in financial freedom for our investors and strive to provide an investment vehicle that outperforms traditional savings accounts in every way possible.”