Investor: The Lunch Bar Test

Oct 17, 2014 Blog  INVESTMENTS

Whenever I’m left thinking about what kind of person would need, or like, something my mind is always drawn back to that classic Lunch Bar advert. The one with the huge Scotsman who is challenged by this rather diminutive African fellow in a battle of physical prowess – needless to say the African fellow takes the honours.

This leaves the giant Scots to wonder out loud: “What kind of a Makatini are you?” in his rather thick Scottish accent. It was this line that kept running through my head as I tried to work out which types of people would be drawn to, and engage with, peer-to-peer investing. Here’s what I came up with:

1.    The Responsible Lender
A lot of people these days have some money they want to invest. However, a lot of the things they are able invest in lack a certain human quality to them. Buying into giant corporations or sticking your money in a massive bank often leaves these folk wondering what their money is getting used to fund.

This is where peer-to-peer lending, and platforms like RainFin, come in. They give you complete clarity in what you’re investing, allowing you to make an informed and guilt-free investment. Knowing that your money is being used for the right ends is a value a lot of other investment opportunities lack.

2.    Risk Averse Investor

Now this type of investor is someone who has capital but they’re reaching the point in their lives where they want to retire and use that capital as a monthly income. Not so easy these days with the banks charging an arm and a leg just to keep your savings account open.

Now this investor wants to invest in something a little less risky so he spreads some of his capital into the lower risk investments – investments where you earn a nice return without too much risk. Peer-to-peer investing offers these types of investors the chance to earn great returns on low risk investments that clearly out strip the returns that conventional, low risk investments offer. Compare interest rates.

3.    The All-in Gambler

While peer-to-peer investing is one of the safer alternative investing options out there, there is a wilder side to it. By investing in the higher risk investments you stand the chance to gain massively. But with these gains come far greater risk.

Some of us out there enjoy taking a gamble now and again. These kinds of investors look to the high reward-high risk opportunities, willing to chance some of their capital on making big bucks.

4.    Spread the Love Investor

These kind of investors are simply looking to diversify their accounts. By tapping into the peer-to-peer market, they are able to add an extra avenue for capital growth. Diversifying is always a great idea and peer-to-peer investments have the added incentive of not being linked to corporations, banks or the stock market.

5.   The Party Planner

These investors are more of a new-age type – the social media generation if you will. They’re generally the younger generation who have some disposable income to spend each month, Rather than sticking it away in a money market account and saving it for that Ibiza holiday in July, they want to see it growing and working for them.

These investors look to leverage their pay-cheques to ensure their next trip is really something spectacular. Fed up with the slow rates of returns they’ve received until now, they’re drawn to the hands-on nature of the peer-to-peer lending.

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