4thWay Managing Director, Neil Faulkner was quoted in the article, responding to record 2016 figures coming from The Peer-To-Peer Finance Association – Proplend highlighted as one of the (two) lowest-risk peer-to-peer platforms identified by his ratings and research agency.
And Speaking in August 2016, Mr Faulkner commenting on his company’s maximum 5 Plus award for Proplend’s Tranche A loan investment product, said:
“This is frankly very impressive considering we add huge penalties to our models for any platforms with a history as short as Proplend. I’m really quite astounded that despite this Proplend still get the top score, it shows the underlying safeness for investors and the risk-reward balance.”
Founded in 2014, Proplend pioneered the P2P tranche loan model – allowing lenders to choose a loan to value-based risk bracket that matches their own risk appetite. Tranche A in particular enables relatively risk-adverse individuals to participate in loans that limit their exposure to 50% of the value of the property the lending is secured against.
In Saturday’s Times feature a peer-to-peer investor emphasises the significance of his loan investment being secured against a property and a first legal charge is just one of the ways the Proplend platform helps minimise its investors’ lending risk.
Proplend believes that for many P2P investors, particularly those who are looking for an alternative to saving, the measures a platform takes to protect their investments, can be just as attractive as the returns themselves.