So while I’m gradually beginning to get my head around exactly what FundingKnight do, I realised, attempting to write this post, that there’s still loads I JUST. DON’T. GET…. So, I thought, why not quiz some of the big financial brains currently residing at FundingKnight to help get to the bottom of all this crowdlending jazz?
Now first things first..what to ask?! I guess rather selfishly, what’s in it for me and how much will it cost me as either a borrower and what are the rates of interest?
FK: When it comes to crowdlending (or peer to peer lending as it’s also known) the lenders – or investors – choose the rate that they are prepared to lend out their money at so, if you like, you set your own interest rates. That said, there’s obviously only so many loans to go round so as more and more lenders get involved, they’ll start outbidding each other and rates will get more competitive for borrowers. Right now, we would expect rates to be somewhere in the region of 7% to 12% to begin with.
Right. So rates are competitive, flexible and fluid and the more people get involved the more people benefit. Sounds fantastic and something people can really believe in and get behind. How about as a lender – would I expect to pay any fees investing my hard earned cash into FundingKnight?
FK: No. There are no lenders’ fees, it is entirely free to invest.
So that’s the costs sorted out in my head. There will be more questions. So many more I wonder sometimes how I get by in life but at the beginning of my journey it is all starting to make more sense.
Next up – financial security and timescales. Are there any questions anyone out there would like to quiz FK on? Please get in touch, I look forward to hearing from you.