Not investment or financial advice. This is not an endorsement or recommendation to buy, sell or hold. The staff of this site may own the asset/s mentioned on this page. Investing is risky and you may lose all your capital. Do your own research. See full disclaimer.
We receive no direct payments from the mentioned companies. Some links on this page are affiliate links, at no extra cost to you, we may receive commissions when you use them. However, we try our best to keep our articles fair and balanced.
What Is A Kuflink?
Kuflink is a p2p lending company. It connects borrowers and lenders. The borrowers borrow cash and use their property as a guarantee. Kuflink evaluates these properties, does all the paperwork . The lenders then lend their funds to the borrowers in exchange of interest and capital repayments.
How to sign up to Kuflink?
Sign up on Kuflink can be followed here: https://invest.kuflink.co.uk/
New accounts have up to a 14 day colling off period, this means that you can take back all your invested capital within this period, even if you have already invested in loans.
What’s in it for the lenders?
Lenders can lend their funds to borrowers in loans secured by property. This offers some protection in case of loan defaults.
Lending is offered through both ISA and not-ISA (regular accounts)
Rates of return average around 7%
There are no fees for the lenders.
The minimum investment is very low, what this means is that you can reinvest your earn interest very quickly.
Lenders can use an auto-invest tool, this makes investing automatic, saving time and energy. Interest is paid annually when using the auto-invest tool. The ROI on auto-invest loan might be slightly lower than the industry average. There are 1,3 and 5-year investing periods when investing in automatic mode.
Lenders can start with as little as £100 when using the auto-invest.
It is possible to manually invest in loans, interest on these is paid at the beginning of each month. Lenders can sell their manually invested loans on the secondary market. A 0.25% selling fee is applied on loans sold in the secondary market.
Investing in pre-launch stage loans entitles you to a cashback.
If you are a resident of the USA and have a UK bank account you can open a Kuflink account.
What security do lenders have?
Kuflink does not have a fund that would repay investors in case of default, (provision fund) however, Kuflink guarantees that any defaulted loans will be repaid for at least 20% of the original capital invested. At the time of writing, I could find no evidence that Kuflink actually has 20% of their total loan book as a reserve fund.
Kuflink has skin in the game, they invest in each loan they provide on the platform up to 20%. Thus the interests of Kuflink and the lenders are aligned.
If any loan defaults, Kuflink takes the first losses. In the case of manual lend, it is 20% and in the case of auto-invest, it is 5%.
Kuflink has a short but good lending history. They have not had any default since they launched in 2016 and as of 2018, a majority of their loans have been repaid in full. Unfortunately, there is no detailed page with such statistics on their website
Each of Kuflink’s loans has extensive documentation, possible to the highest standard in the industry. Each loan includes information on the borrower’s credit rating, the skin in the game for Kuflink and RICS valuations. Loans also have a credit rating from A to C.
In case of a default, debt recovery will ensure some or all of the return on the capital. On first charge guarantees however, this process is long, complicated and never straight forward. On second charge guarantees, the process is even more complex.
Lenders lend directly to borrowers rather than to Kuflink, this offers a layer of security in case Kuflink defaults.
What should be lenders be aware of?
It is not possible to exit early from invested loans.
If Kuflink fails or defaults their guarantees probably no longer apply.
Lendy a UK p2p company recently defaulted.
Natural disasters, Brexit, Recession, Shifting market demands can all impact the values of the property
Valuations are only valid the moment they are made, and even then valuations are subjective and there is no guarantee whatsoever that if the properties are sold they will be sold at the valuation price.
Alternatives to Kuflink
What do we know about Kuflink?
Kuflink are regulated by the FCA #724890
At least £58,777,191m have been invested as of August 2019.
Kuflink is a family-owned business, who have a declared work ethic and values https://kuflinkpdfs.s3-eu-west-1.amazonaws.com/Kuflinks+Cultures+and+Values.pdf
Learn more https://www.kuflink.com/about-us/
They have a very good corporate social responsibility program.
Companies House accounts: Kuflink Group
Email: [email protected]
UK Tel: 01474 334499
Let us know your experiences on Kuflink.