P2P lending performance | General financial discussion | Discussion forum

I think it was this discussion: Consumer peer to peer lending platform

As always, "buyer beware." With that said, don't throw the baby out with the bathwater. I've been with Lending Loop since September 2018, and for the 1.5 years prior to Covid (i.e., March 2020), both my experience and gains with the platform were excellent. Yes, there is risk in investing in these businesses, but I would posit that the losses experienced are due more to the broad-based difficulties in the small-medium enterprise (SME) sector across Canada than it does with problems with the underwriting done by Lending Loop themselves.

I invested a total of $7100 with 171 businesses in Lending Loop and, prior to Covid, my NET profit was over 11% (18% gross) annually. As you can (hopefully) see from my screenshot, Covid and the associated SME sector struggles has brought that down to 5% annually (i.e., 1437 ÷ 7100 = 20% ; 20% ÷ 4 years = 5% annually). This is not a bad outcome, all things considered. I would not advise jumping onto Lending Loop and business loans THIS VERY MOMENT in economic history, but when the dust settles and the economy gets back on track, I fully intend to resume putting the minimum investment of $25 into loans with auto-lend.