It has been almost four weeks since LendingClub closed down their retail investor platform and cash is already starting to build up. I have had many people reach out to me to ask what I am doing with this idle cash so I thought I would provide some suggestions.
Important note: Nothing I write here should be taken as investment advice. This article contains my own opinions only and may not be suitable for your circumstances. You should always consult with a finance professional before taking any action on investments.
Here are twelve platforms for individual investors, most of which I have made investments on, that provide a similar kind of return to what we came to expect from LendingClub. I have broken these down into two groups: non-accredited investor options and those for accredited investors only.
Non-Accredited Investor Options
- Prosper (prosper.com)
Prosper is the only offering that will provide exactly the same type of investment as LendingClub: unsecured consumer loans. I caught up with Prosper yesterday to get an update on their retail investor offerings and was pleasantly surprised. Retail Investor volume is up over 90% from April to December and this month is maintaining that trend. They are trying hard to ensure that idle cash is minimized and that is certainly true in my case as I am fully invested as of today. They are working on enhancements to the investor experience with an updated interface and new tools for monitoring investments. They are also committed to offering notes across the credit spectrum based on investor demand. Prosper increased interest rates at the start of the pandemic and the Loan performance for the 2020 vintage has been better than expected, performing even better than the typical vintage so far. To get more details on performance, you can read Prosper’s monthly performance updates on their blog. I will be increasing my allocation to Prosper significantly as cash builds up in my LendingClub accounts.
- Fundrise (fundrise.com)