P2P Lending Platforms Compared - Australia

Hello everyone. I would like to share my research on all the p2p platforms In Australia right now and discuss which is the best in terms of return (after fees) and risk. There are also some other factors to consider such as minimum investment and length but we will get to that soon.   

    

Firstly, I’ll explain what it is: Peer to peer lending match’s people who have money to invest with people who are looking for a loan. A more appropriate term for this practice is marketplace lending because an online platform, usually a website, is used to match investors with borrowers. Over the last three years we have seen a huge increase in the prevalence of such investments providers. Even though the term marketplace lending best describes this type of lending, on this page we refer to it as peer to peer lending (or P2P lending) as these are the terms most people use.  

Now before I go on, I would like to point out it is important to compare P2P lending with other investment methods first.  I will do this in the future if there is a demand. There are currently 9 providers, only four of which are available to retail investors such as you and me. Now if you are after a video comparing the six that currently exist for high net worth investors I may talk about this as well in the future if a demand exists, comment down below if this is the case.   

The five that are currently unavailable to general investors are society one, MoneyPlace, Harmony, BigStone and ThinCats. The four that I will be comparing today are RateSetter ,Wisr (direct money), MarketLend and true pillars as these all are available to the general investor.   

I took data such as ROI, length of term, minimum investment, fees and of course risk* to rank them in order of attractiveness to the investor.   *Various information must be taken into account when calculating risk, this includes, market risk, credit risk, platform risk, trading risk, interest rate risk, liquidity and more.

I also made a youtube video going in depth which can be found here: