Summary: EDIT: As of December 6, 2019 Moneything are in wind-down and are not accepting any new investments.
Moneything is a site which purports to lend money to a variety of borrowers, as long as it is backed by assets. Originally, this produced several interesting loans which allowed investors to diversify their loans across different asset categories such as cars, jewelry or even mobile phones. In recent years the site has become property and development heavy, and the platform has hit some problems with some loans which look set to end in losses for investors. Whilst the defaults appear to be better managed than some other platforms, it is quite difficult to get into any non-property loans. However, investors may be attracted by the high interest rates on offer here.
Here is how Moneything compares to the similar P2P platforms that I invest in, together with real-life results:
|Platform||Link||Target Rate (%)||My XIRR (%)||Status||Live Rating|
|Review||Up to 16%||-5.4% (estimate)||CLOSED||1.5/5|
|Review||Up to 7.2%||7.23%||OPEN||4/5|
|Review||Up to 11%||5.72%||OPEN||4/5|
|Review||Up to 13%||3.90% (estimate)||CLOSED||2.5/5|
|Review||Up to 8.5%||4.46%||OPEN||2/5|
|Review||Up to 8%||TBC||OPEN||3.5/5|
DECEMBER 2019 UPDATE: As noted, Moneything is in wind-down mode and will seek to conclude the remaining projects. This should result in a better result than if the administrators had been called in, but I am still expecting losses.
NOVEMBER 2019 UPDATE: No change. Resolution on loans has been poor.
OCTOBER 2019 UPDATE: No change. A little silent in the wake of Funding Secure’s collapse.
SEPTEMBER 2019 UPDATE: Moneything loses a star to 2.5. Problematic loans which were set to be resolved this month have dragged on, and there has been a dearth of new ones.
AUGUST 2019 UPDATE: Still have concerns about the poor loans. Despite a pledge to move to lower risk loans, the first loan brought out after this was a high risk development one.
JULY 2019 UPDATE: The secondary market availability was short-lived. With a number of problem loans still to be resolved, I am not investing any more here.
JUNE 2019 UPDATE: No change. A marked increase in the availability of secondary market loans.
MAY 2019 UPDATE: Little change. A little concerned about deal flow, and in the light of this a downgrade to 3 stars.
APRIL 2019 UPDATE: No change.
MARCH 2019 UPDATE: No change.
FEBRUARY 2019 UPDATE: Withdrew some money due to lack of opportunities.
JANUARY 2019 UPDATE: No change
DECEMBER 2018 UPDATE: Very little has happened, with no new investments or withdrawals. Much of the reasons are to do with the lack of loan origination, and the availability on the secondary market for loans I have no interest in or am already invested in.
What is Moneything?
Moneything is a relatively new P2P lender, opening its doors for business in 2015. They offer a wide variety of loans across a different range of assets. Initially there were many smaller loans which dealt with physical assets such as stock, cars and jewelry. In more recent times more property bridging and development loans have appeared on the platform, the larger investor base facilitating the increased monetary demands.
This is a keenly contested segment of the market, with other P2P lenders such as Funding Secure offering the same type of loans, both in size and asset types. Moneything are competitive on the rates they offer: most loans are 12%, with some at 11% and 13%. There are also cashback offers available should loans not fill quickly enough. Moneything loans all operate in the same way: interest is paid monthly, with the capital being repaid at the end of the loan.
Here is a table which details Moneything’s features:
|Advertised Returns||Up to 13%|
|Loan Security||Property, Debenture, Assets|
|Cash Drag||Dependent on loan|
|Available in ISA?||Yes|
|Active on forum?||Yes|
Are Moneything profitable?
Moneything is a trading name of Moneything Capital Limited. This has been incorporated since 2004. The last accounts were filed on 18 December 2019 for the period of 12 months to 31 March 2019. The abbreviated accounts show a net asset position of £127,206, although retained earnings fell by approximately £44,000. Cash at bank had also declined sharply from £485,000 to £135,000.
A charge appeared recently over the company assets which presumably is for borrowing for working capital. This is not such a good thing for investors. The charge is from a company called Rapid Finance which presumably is a lender of last resort at high interest rates, and if the wind-down does not go as planned repayments could rank behind this charge.
Your account can be funded via bank transfer (min £100, although there is a £1 minimum on loans). New loans appear on the platform, usually with some advance notice and initial bid limits, since any non-property loans tend to be very popular. The decisions regarding the product is quite simple – there is no auto-invest or black-box product, meaning you must select your loans yourself. This feature is bound to delight some, but not others.
Selecting the loans is easy – simply click on to the loan, read the accompanying details and pledge your amount. Interest is paid once the loan goes live and is paid monthly, with capital being repaid at the end. As already remarked, more riskier loans have started to appear on the platform such as second charge loans and loans contingent on developments, so it is not a case of automatically investing into everything you see.
Like most platforms, Moneything has a secondary market where you can sell loans without charge, but unlike other platforms it is not possible to discount your loans and they are only offered at par.
How are funds protected?
There is no provision fund, or any other feature designed to compensate investors in times of loss. Instead Moneything seeks to lower the risks by only using conservative valuations, and uses current valuations instead of the common Gross Development Value (GDV) – something that has seen loans on other platforms go bad, because the figure is based on multiple uncertain factors.
Pros of Moneything
There are several things to like about Moneything:
Range of Asset Types: Moneything offers a genuine range of different assets to invest in, from cars to business assets, even though property has taken over as the dominant class on the platform.
High Interest Rates: There is little variation on the interest rates which are high: most loans pay over 11%.
Good Communications: The site is easy to navigate. Where updates have been required on loans, they have been fairly comprehensive even if the news was bad. Transparency is better than on some platforms, for example related loans are disclosed.
Cons of Moneything
There are also several things to dislike about Moneything:
Difficult to diversify: There are not too many loans available on the secondary market, meaning it would be difficult for a new user to create a diverse portfolio.
No discounting on secondary market: This means it may be difficult to exit a loan if it has become slightly impaired.
Some cash drag: Some of the bigger loans can take months to fill due to their size.
Risk creeping in: Several property loans have gone bad in the past year, leaving lenders with likely losses.
Risk Drift: A new direction or temporary blip?
One of the bigger concerns is the taking on of bigger loans which have gone on to default. Without revealing specifics of these loans, many were to fund rather speculative developments which went on to fail, in that the developer simply ran out of cash. This leaves lenders in a difficult position, which is either to sell an uncompleted development, or to provide the additional finance and sell it then. In the first case, there may be few takers for the property (in which case the price either keeps on going down or it goes to auction), and in the second case, losses may be realised.
It is understandable why this happened: Moneything now have loaned £90m and this wouldn’t have happened if they kept on loaning on small value items. By incorporating property, several millions can be loaned at once. Unfortunately these come at bigger risk and lenders bear the brunt of that. It is rather notable that the ‘no to GDV’ did not save lenders from losses.
Most notably there have been loans put forward by Moneything that have been so bad that they could not attain the funding required. When the platform has nothing to lose this type of thing happens.
At present the rate of loans has decreased, and many of these are still for property. On one hand, many of the defaulted loans appear to be handled well. Action is taken fairly quickly unlike on some platforms where nothing is done for years (in the hope that divine intervention makes the developer work again), but this does not mask the fact there will be losses for lenders.
My Moneything Investing Strategy
With only a self-select product, the strategy has to be to choose your own loans. For a new lender, this may not be that straightforward, as the only loans available at this point are the ones on the secondary market and these are mainly property. With this in mind it may take some patience to build up a good-sized exposure. My rules are:
Modest investment size: Keep your investment to only what you can afford to lose.
Read the loan documents: Despite the very similar interest rates, in my view the quality of loans differ quite a lot. Examine the possibility of the exit should things go wrong. If something looks too good to be true, it probably is.
Scan the secondary market: Regular scans of the secondary market here are good, because once in a while someone will be selling a non-property loan, for example one backed by cars.
Avoid second charge loans/additional tranches: These are quite rare on the platform but I would still give them a wide berth, neither pay a massive premium over standard loans.
Moneything is a relatively new peer-to-peer site that offers high rates of interest across a wide variety of asset classes. This gives it quite a bit in common with Funding Secure, but the way the platform has dealt with some of its problematic loans gives me a far better impression of the competence of its management. Currently extra investment is being held up here due to a lack of suitable loans.
Disclaimer: This article represents my own opinions and should not be substituted for investment advice. Please research before you invest with any firm. Typically P2P investments are not covered by the Financial Services Compensation Scheme (FSCS) in the way bank deposits are, and there are no guarantees that you will receive the returns advertised (or even a return at all).