Tax-Free Peer-To-Peer Lending
Low savings rates investors are expecting more details from the chancellor on matters concerning peer-to-peer lending.
Last year, the chancellor has promised to allow peer-to-peer lending but only within an ISA (Individual Savings Account) type tax shelter scheme. Potentially, millions of investors are excited about the chancellor’s proclamation on how and when this could materialise.
Ideally, investors could double their tax-free returns. It is said that there are people who are being offered with over 6% interest a year, given that they put away their money for five years!
In peer to peer lending, you lend money like any other banks do. The fact that not all of your borrowers are going to pay you back is what you must be prepared for – know your risks!
Even though most platforms recompense if things go wrong, you must be fully aware of the possible risks and be ready to lose some of your cash.
Tax-Free Peer-To-Peer Lending: Know The Risks
The greater is the amount of investment, the higher is the risk. Hence, starting with smaller amounts is recommended with added due diligence. Basically, platforms will allow you to spread your money across various borrowers which will lower the overall risk.
Peer-to-peer lending websites act as intermediaries between lenders and borrowers. Unlike banks, these websites offer them the chance to get much better returns on their cash investments.
Moreover, the fear of ending up with nothing when the borrower fails to pay back could be eliminated since most peer-to-peer lenders provide compensation.
As a peer-to-peer lending investor you would practically want to get significantly higher returns but with some control over how and where the funds are used.
Stratosphere offers not only monthly returns and an enhanced cash flow, we are giving peer-to-peer lending investors an option to spread their funds across more than one secured property-based project – where risk is greatly reduced!
Want to know more? How Stratosphere peer to peer lending works.