I've been investing a small amount each month via the peer-to-peer lender RateSetter, and so far haven't had any issues. I've invested in the five-year term lending (as it offers the higher interest rates), which has been offering an interest rate of around 7%pa. I get monthly interest payments from each micro loan, which I get automatically re-invested into new five-year loans. Sometimes various loan amounts will be repaid early, in which case the money just gets reinvested in the new loans at the prevailing rate. Of course the interest rate varies (supply and demand) and the principal and interest isn't guaranteed, although a small proportion of the funds invested gets taken and held in a pooled trust fund which may be used to make principal and interest payments in the case of bad debts. I haven't made any withdrawals as yet, but I'm assuming RateSetter will remain solvent and process any withdrawal requests (I've only got $2,953 invested, so I don't have a significant portion of my net wealth invested in peer-to-peer lending as it's quite high risk).
If anyone is interested in investing in peer-to-peer lending via RateSetter, you can use this link to register for an account and you'll be eligible for a $50 bonus payment if you invest $1000 before 30 June 2020 in either the five-year market or one month rolling deposit.
Full disclosure: I'll get a matching $50 bonus payment if any reader uses this link and qualifies for their $50 bonus, hence this post ;)
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