Peer to Peer Lending
How to Invest in Peer to Peer Lending (“P2P Lending”) With OurMoneyMarket
So you’ve heard about peer 2 peer lending, or peer to peer lending Australia, and your wondering how to invest in peer to peer lending. This page is dedicated to walking you through how to set up an account and get started.
At OurMoneyMarket, we make it easy for our customers to invest in loans. We enable customers to invest as little as $50 into each loan. This means, customers are able to diversify across a range of loans in order to reduce their risk of loss.
It’s very easy to get started with OurMoneyMarket. Firstly, do your own research, read our PDS, before you make a decision on peer to peer lending. If you’re satisfied with the P2P lending ROI, click here to register as an investor.
Once you’ve made an investor account, you’re able to browse our loans on the marketplace. You can do this by going to ‘Invest’ on the left-hand side menu and then clicking ‘Marketplace’. Clicking ‘View’ on one of these loans will give you more detailed information on the loan investment. To start your P2P lending portfolio you’ll first need to transfer funds to your OurMoneyMarket account.
Adding funds to your account with OurMoneyMarket is easy. To add funds, click on ‘Transfer Funds’ on the left-hand side. After that, click on ‘Transfer Funds In’. This page gives you your BPAY details for your individual investor account. Log you’re your internet banking and make a BPAY payment using these BPAY details. Now you can sit back and relax while the funds are in transit.
Okay, so you’re received your funds and you’re ready to invest. Now we’re going to describe the final steps on how to invest in peer to peer lending and how to reinvest your earnings to grow your portfolio.
How to Invest in Peer to Peer Lending
There are three options available to you once you’re ready to invest in P2P loans: Quick Invest, Marketplace or Auto Invest. Each option has its advantages and disadvantages, so you’ll have to decide what’s right for you.
Quick Invest allows you to automatically allocate your funds to a range of loans based on your risk preference. Simply input the amount you’re looking to invest and the maximum you want to allocate in each loan. You’ll then be prompted for which investment option you’d like to go with: conservative, balanced and high-yield. After you’ve chosen your preference, the system will allocate your funds to a basket of loans. You’re then able to sort through them individually to make sure you’re happy with what the system has chosen for you. The advantage to this system is the speed in which you can allocate a large amount of funds. The disadvantage is that the system may miss loans you may have chosen if you were to select loans yourself.
The Marketplace option allows you to manually sort through the marketplace of loans and select each loan individually. The advantage of this is that you can build your own portfolio by selecting each marketplace personal loan. This may be the type of P2P investing for you if you prefer to assess the detail of each loan. The disadvantage to this option is the time it takes to manually go through each loan
Auto Invest is a more passive investment option. Using the Auto Invest tool you can simple set some investment criteria (max loan term and max amount per Loan Grade) and let the OurMoneyMarket platform do the work for you. What’s more, Auto Invest allows you to keep reinvesting your funds on the platform. This means you don’t have to watch your account or browse through loans yourself. By visiting the ‘Auto Invest’ option on the left-hand side menu, you’re able to select from a range of options that include:
We find many of our investors love this option because it not only saves them time, but it also helps them to keep their funds invested.
We understand that P2P lending is a relatively new financial product available to savers. That’s why we’ve built our platform with the investor in mind. Our ease of use, combined with our commitment to educating customers makes peer to peer lending Australia simpler
Peer to peer lending has taken the financial industry by storm since its inception just over a decade ago. But how safe is peer to peer lending? To answer that, we need to answer – what is peer to peer lending?
Peer to peer is an online loan marketplace. When peer to peer is used in lending, it simply means matching borrowers with investors. Matching borrowers with investors allows society to cut out the middlemen, which in this case, are the banks
What benefit does cutting out the banks have for society?
Banks have traditionally made money from taking a customer’s deposit and lending those funds out at a higher interest rate than they pay to the customer. Cutting out the banks from the lending process gives the money back to the people. It allows individuals to take their savings and invest them across a pool of loans. This can potentially earn a net interest rate much higher than other fixed income products.
But this still leaves investors asking, just how safe is peer to peer lending?
Lending carries a lot of risk. There are a lot of factors that go into how risky an individual loan is. Before investing in any loan, we recommend all customers speak with a financial advisor about your financial circumstances. If you’ve independent advice, we also urge you to make sure you’ve read through our PDS before investing.
How do we help investors overcome this issue, and how safe is peer to peer lending with OurMoneyMarket?
We enable our investors to invest as little as $50 per loan. This means that if you’re looking at investing in marketplace loans and have $1,000 in available capital you can spread their repayment risk over 20 loans. $10,000? 200 loans! We aim to provide our investors with a wide selection of loans, each with different risks and different rates of return, so that we can satisfy each of our investors’ specific individual risk appetite requirements!
Before joining us, you should definitely do your own individual research and find the answer to “how safe is peer to peer lending?” But once you find the answer, and you’re ready to take on the risks associated with lending, definitely visit our investor portal, or create an account, and take a look at all of the functionality we have created just for you!