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Kuflink Analysis

Real Estate Loans
Direct Marketplace Lending

Last updated in November 2022.

What is Kuflink?

Kuflink Ltd is a peer-to-peer (P2P) lending platform established in 2017, incorporated in England and Wales. The company initially started in 2011 as Alpha Bridging, and was focused solely on bridging loans. Today, Kuflink is an award winning Online P2P Platform that connects borrowers with lenders, providing short term funding secured against UK property. Kuflink is licensed by the United Kingdom's Financial Conduct Authority (FCA). Since they launched, they have invested over £228.10M and have repaid capital £131.02M (Figures sourced on October 30th 2022). Head over to Kuflinks’ statistics to get more valuable performance insights.

Key Takeaways

  • Kuflink investors have suffered £0.00 losses to date (Figure sourced on October 30th 2022), and borrowers can receive funding in as little as 5 days.
  • Kuflink co-invests up to 5% on all Select Invest deals and takes the first hit on their 5% in case of a loss; protecting investor assets and aligning their interests with their investors.
  • Kuflink has invested in 522 projects (Figure sourced on October 30th 2022).

Who is Behind Kuflink?

Narinder Khattoare serves as the current Chief Executive Officer (CEO) of Kuflink, and has been an integral part of developing the company’s products since July 2013. Kuflink was founded by Harwinder Singh and Rawinder Binning (current Chief Compliance Officer); both entrepreneurs have experience in several areas of business and finance, primarily focusing on real-estate investments.

Other prominent company personnel include, Nattalie Weeks, Head of Collection, and Tejwant Chattha, Head of UK Investor Relations. Nattalie has an extensive career in financial services, having spent 30-years with the Royal Bank of Scotland; Tejwant has over 15 years of experience in both property development and investment.

Kuflink Ltd reported profit after taxes of £295,191 for the year ended 30 June 2021. Kuflink Ltd is owned by parent company Kuflink Group Plc. 

Kuflink's Investment Product

Kuflink offers three easy to use products - peer-to-peer investments, innovative-finance ISA (IF-ISA), and self-invested personal pension (SIPP). Investors can invest with as little as £100 and enjoy annual returns of up to 7.44%.

Kuflink’s peer-to-peer investment products offer two variations:

  • Select invest in which investors control their funds and invest in projects secured by UK property. Investors can earn up to 7.44% gross pa, by investing as little as £100. Kuflink co-invests up to 5%, and only lends up to a maximum of 75% LTV, in hopes of recovering all funds in the worst-case scenario. In a recovery situation, Kuflink takes the first 5% hit before their investors, as an additional assurance to protect investor assets.
  • Auto invest in which an algorithm automatically diversifies your funds across projects to limit your risk. Investors can earn up to 7% gross pa, with 1, 3 and 5 year terms available. Auto-invest reduces the time investors would likely spend researching investments, allowing them more time to enjoy their returns.

Innovative-finance ISA (IF-ISA)

  • Investors can use their £20,000 annual tax-free allowance, and earn up to 7% GPA tax-free interest with an IF-ISA. Investing as little as £100, with 1, 3 and 5 year terms available. The entire pool is secured against UK property.

Self-Invested Personal Pension (SIPP)

  • SIPP is a type of Personal Pension Scheme, that allows investors to invest in a range of approved investments, including P2P lending.
    • Interest is paid monthly.
    • Tax-free returns by investing in a diversified portfolio of SIPP eligible loans secured on UK property. No tax on income, other than equity dividends. No tax on capital gains.
    • Provided in partnership with Morgan Lloyd.

How Much Can You Earn?

According to data published on Kuflink’s statistics page, investors can earn up to 7.44% per annum, over 1, 3, and 5 years terms with as little as £100. Kuflink has invested over £223.8M and paid back over £128.5M in principal capital and interest. 

To date, Select invest has generated between 6.7-6.83% returns between the years 2017-2021; and Auto invest generated between 4.01-5.00%, 5.00-6.10%, and 5.35-7.00%, respectively over 1, 3, 5 year terms between the years 2018-2021. 

Funds now deployed in Auto-Invest are earning 5% pa over the 1-year term, 6.1% pa over the 3-year term and 7% p.a. over the 5-year term.

Other Considerations

Kuflink has an intense due-diligence process with several background checks conducted by teams of industry professionals. Checks include, but aren’t limited to ID checks, credit checks, and asset checks done by underwriters. Directors undertake site visits on some of the developments, and valuations are carried out by RICS approved valuers, using solicitor firms with a minimum of two solicitors appointed by the Solicitors Regulation Authority (SRA), and two in-house credit committees. Finally, compliance checks, and checks done by the Accounts team are necessary before the release of funds.