Loanpad among primary constituents of the 4th Way P2P And Direct Lending Index

Loanpad is proud to announce that it is one of the primary constituents of the newly-launched 4th Way P2P And Direct Lending (PADL) Index¹.

The index covers more than half of the UK’s P2P lending market by current volume, at more than £745m.

It allows borrowers and investors to directly compare the performance of various P2P lending platforms and online direct lenders for the first time.

Loanpad is one of six lenders represented on the index, alongside CapitalRise, CrowdProperty, Invest & Fund, Kuflink, and Proplend.

Research and ratings company 4th Way collected ten years of historical performance data from these constituents ahead of the launch of the index.

An analysis of this data found that the annualised returns for P2P and online direct lending after costs have averaged out at 7.36 percent per annum.

Furthermore, there have been no down years for P2P investors, and existing investors have more than doubled their money over the past decade.

“We are proud to be among the first cohort of P2P lenders to be listed on the PADL Index,” said Louis Schwartz, Founder and Chief Executive of Loanpad.

“Creating this index required an enormous amount of research and we were happy to help by sharing our historical performance data with 4th Way.

“We are proud of our track record as a company, and we were delighted to see proof of the success of P2P lending over the past ten years.

“This is a fantastic asset class which allows investors to earn competitive returns while supporting the British economy. We hope that this index will help to shine a spotlight on this market so that more people can discover the benefits of P2P in a diversified portfolio.”

Neil Faulkner, Co-Founder and Managing Director of 4th Way added that the index launch shows the longevity and stability of P2P lending.

“We are finally able to show that P2P and other online direct lending is no longer new and the reason why it has survived now for nearly two decades with a very loyal investor base is because it has outperformed so many people’s expectations by a long margin,” Faulkner said.

“Not just in overall gains, but in its reliability and stability too.

“At the same time, money lending directly with borrowers who are putting the loans to good use brings many benefits to the nation as a whole, since banks often do not handle certain types of property-secured loans.”

The PADL Index is now live.

[1] https://www.4thway.co.uk/4thway-p2p-and-direct-lending-index/