Peer-to-peer lending platforms. A data-based comparison.

Before you read this article I strongly advise you to read which aspects of a peer-to-peer lending platforms are important! 

I collected all relevant data regarding 10 peer-to-peer lending platforms and put them together in neat tables.

You can make an informed decision without having to go through all the material and FAQ-s that these platforms publish.

First, let’s look at the most important variables when choosing a peer-to-peer lending platform:

You have to find the best combination of return and collateralization.

Keep in mind that even tho some platforms offer lower returns by default, there might still be individual loans available with higher returns through the secondary market.

Manual selection of loans lets you select loans individually based on the borrower and loan conditions.

The secondary market lets you buy and sell loans before maturation, which is important since you can withdraw your money quickly if you need it. Fees only play an important role if the lender/you has to pay it.

 BondoraABLRateCollateralUKFunding CircleFunding Secure
Advertised return10%10-16%12%7%16%
Loans CollateralisedNoYesYesNoYes
Manual selection of loansNo YesYesYesYes
Secondary marketYesYesYesYesYes
FeesOnly for the borrowersOnly for borrowersOnly for borrowers1% Annual Servicing Fee, 0.25% Sale FeeNo information
 MoneyThingRatesetterRebuildingsocietySaving StreamZopa
Advertised return12%2,5% (however you can set rates for borrowers)15,4%, interest bid system12%3,1-6,3%
Loans CollateralisedYesNoNoYes+Provision fundno
Manual selection of loans YesNoYesYesYes, but limited information
Secondary market YesNoYesYesYes
FeesNo informationNo information0.5% micro loan sale feeBorrowers pay feesBorrowers pay fees

Here are the less important factors when choosing a peer-to-peer lending platform:

Some platforms may have better conditions, some are better regulated, some may even disqualify you from using the platform entirely. You have to find the best combination that fits your needs.

 BondoraABLRateCollateralUKFunding CircleFunding Secure
RegulationFSA, Regulators in FinlandFCAFCAFCAFCA
Where do they investEstonian economy, Finnish economy, Spanish economyUKUk citizens and businesses with collateralUK Businesses UK
DepositSEPA bank transfer, TransferWise, Currencyfair and EVP InternationalBank transfer or via a debit card, TransferWiseCard Payment or Bank TransferDebit card, Bank TransferBank Transfer
Promotion5 EURO free at account opening No NoCashbackNo
Who can investCitizens of European Union, Accredited investors around the worldEveryone excluding the USAEveryone excluding the USApermanent residents of the UKNo restriction
IdentificationAt withrawalUK citizens use Tracesmart, rest documentsAt registrationAfter registrationAfter registration
Score8/106/106/105/105/10
WebpageLinkLinkLinkLinkLink
 MoneyThingRatesetterRebuildingsocietySaving StreamZopa
RegulationFCAFCAFCAFCAFCA
Where do they investUK businessesUKUK businessesUK economyUK
DepositBank transferBank Transfer, Debit Card, Regular Lender Instruction or Standing OrderBACSBank Transfer, CurrencyFair, TransferWiseBank Transfer, Standing Order, Cheque
PromotionNo100 GBP Free if you invest 1000+ for a yearLoan auctionsNoNo
Who can investNo restrictionHave a UK bank accountNo restrictionNo restrictionUK Citizens
IdentificationBefore investingAfter registrationAfter registrationThrough a one time depositAfter registration
Score5/103/102/1010/108/10
WebpageLinkLinkLinkLinkLink

As you can see there are a lot of things to consider when choosing a peer-to-peer lending platform.

The best advice is still to open accounts at multiple platforms and see how their interface feels.

You have to be comfortable with their website and support since you will invest you hard earned cash.

You also have to decide if you want to open a tax-free pension account or a normal one.

Both have their advantages and disadvantages. Keep in mind that no matter the choice your capital is at risk and is not protected under the Financial Services Compensation Scheme.