P2P Guide

33 32 TITLE OF SECTION P2P IN ACTION: BORROWER CASE STUDIES CHANCE OF ANNUAL RETURN LESS THAN 6% SOURCE: PROSPER.COM P2P in action: LENDER CASE STUDIES SOURCE: LENDING ROBOT LENDING CLUB RETURNS BY PORTFOLIO SIZE AVERAGE MINIMUM MAXIMUM NUMBER OF LOANS Sample: 17,793 Completed Loans 30% 20% 10% 0% -60% -50% -40% -30% -20% -10% 20 40 60 80 100 120 140 160 180 240 220 200 146 Loans 25 LOANS 25.9% 200 LOANS 4.8% 50 LOANS 19.2% The three key ways to diversify your portfolio Borrower Sector Platform The effect of loans defaulting in a diversified portfolio 5.2 It is not unusual to see recommendations that P2P lenders invest in between 100 and 200+ loans to offset the negative effects of defaults within the portfolio. Analyis of US P2P lender, Lending Club, which offers personal loans, auto refinancing loans, business loans, and medical financing and Prosper, which offers personal loans, endorses these figures.