Unbolted is a UK-based fintech company that offers secured financing to individuals and companies. The company offers multiple types of loans such as personal asset bridge loans, sale advance loans, bid now pay later, and small business loans. The company uses a peer-to-peer lending model, which means that individuals can invest and earn a return. In this review, we will look at how to invest in Unbolted Peer to Peer lending platform.
Unbolted Quick Facts
- Unbolted was started in 2014 by Ashwin Parameswaran and Rito Halder.
- Unbolted has offered financing worth millions of pounds. It has paid back more than £2.4 million to investors.
- Unbolted does not have a secondary marketplace.
- All loans issued by Unbolted are backed by assets.
What is Unbolted?
The financial sector is very important in the United Kingdom. London is known as the undisputed financial capital of the world. The sector is part of the services sector, which is the biggest part of the UK economy.
In recent years, the fintech industry in the UK has been growing. The sector has produced some of the best-known fintech companies like Transferwise, Monzo, Revolut, Zopa, and RateSetter. The fintech industry has helped simplify the finance industry by making it easy for people to borrow, save, invest, and send money.
Unbolted is part of the UK fintech industry. It is both a lender and a peer-to-peer company that helps people raise money that they need easily. By providing a platform where people can invest and borrow money, Unbolted helps the two sides win.
Unbolted borrowers are there because they want money to fund their activities. As such, the company requires that they deposit security that will back up the loans. Investors on the other hand deposit money, which the company can advance to the needed borrowers.
How to Invest in Unbolted
Investing in peer-to-peer companies like Unbolted and Lending Club is an easy process. It is easy because these companies want to make the process as easy as possible. They also want to make it safe and user friendly.
The first process is to visit the website and learn more about it. If it is your first time, we recommend that you spend as much time as you can reading the details of how the process works. Take time to read about how Unbolted works and the case studies.
After this, you should go to invest with us and register as an investor. There are two types of accounts you can have. There is the Unbolted Classic Account and the Unbolted IFISA account. The latter is mostly a savings account while the classic account is mostly for peer-to-peer investments.
As an Unbolted investor, all the loans you offer are backed by physical assets. You can invest in loans directly. Alternatively, you can use the Unbolted Auto Lend feature. This creates a portfolio of loans for you automatically based on your risk profile.
Types of Loans Offered by Unbolted
Unbolted offers four types of loans. These loans are offered to both individuals and companies. These types are:
- Personal bridge loans. These are personal loans that are backed by assets like fine wine, gold, fine art, and diamonds among others.
- Sale advance loans. Unbolted partners with auction houses to offer loans between 40% and 50% of auction reserve of your luxury assets.
- Bid now, pay later loans. These loans enable luxury buyers to bid for products and pay for them later.
- Small business loans. Unbolted offers secured loans to small and medium-sized businesses.
Advantages of Investing in Unbolted
There are several reasons why thousands of people have started to invest in Unbolted. Some of these benefits are:
- Secured loans. Unlike other peer to peer loans, Unbolted loans are backed by physical assets.
- Performance. Unbolted loans return more than 12% every year. This is above what average assets return every year.
- Easy to invest. Creating an account with Unbolted is relatively easy.
- Proven track record. Past performance is never a guarantee for future performance. Nonetheless, Unbolted appears to have a good track record.
- Auto Lend. You can let the company’s algorithms select investments for you.
What are the Risks of Investing in Unbolted?
There are several cons that are associated with investing in Unbolted. Some of these risks are:
- Company struggles. Unbolted does not publish its financial performance. However, a number of UK P2P companies like Landbay and Thincats have struggled.
- Security. Unbolted operates an online platform. These platforms are always at risk of being hacked.
- Regulations. The FCA recently implemented strict rules for P2P industry. As a result, many companies started to avoid retail investors. The company could add more stringent regulations.
- Currency risks. Unbolted loans are usually in sterling. Investments could have challenges if the currency declined.
Countries Unbolted Operates in
Unbolted operates in the United Kingdom. It does not accept investors from other countries.
Summary on Unbolted
Unbolted is a leading fintech company in the United Kingdom. It has grown rapidly and attracted more investors and customers. While investing in Unbolted is a good thing, there are risks that are involved. These are the same risks that have forced several P2P companies out of business. As an investor, we recommend that you set a small portion of your assets in P2P companies like Unbolted. We also recommend that you diversify your investments in assets such as stocks, bonds, Bitcoin and in index funds.