23rd March 2017
When beginning any investment process there are many things to consider. Each investment requires just as much research and deliverance as the first, however, investing is crucial. Inflation lops an average 3.87% off your money’s value each year, and investments are one of the only ways to grow your money fast enough to outpace it.
We’ve collated, what we believe, are the most important factors to consider before investing.
When it comes to investing there is very little that is guaranteed. It is, therefore, important to educate yourself about the risks that come with the world of investments. The outcomes of investing including making money or losing it, it can be said that investors that want quick access to liquid cash in the short term probably shouldn’t invest. It has even been stated that investors should not invest money that you may need access to within the next five years, as is the market decreased, there may not be enough time to recoup those funds.
Before any investment has begun, time should be taken to think about what you want to get back from the investment. Why are you investing? What do you hope to achieve? Is there a specific time or date that you want to access your money? Reviewing your needs and requirements will help you to make realistic and responsible decisions on what form of investment is best for you personally.
As previously discussed all investments carry some element of risk. It is important to understand what risk may be attached to the investment in which you are interested in. Some investments; although they may have a higher risk level will have a greater return on investment, which may be a more desirable option for those with more excess capital.
During your investment, you are at a great exposure to potential changes in the marketplace that could have a detrimental impact on your investment. It is, therefore, a good idea to spread your investment across a number of different opportunities. This will lower your risk of exposure to the marketplace.
Business to business lending is an innovative way of investing. Lenders are market makers, bringing investors and borrowers together, and allowing investors to lend money directly to the borrower. The platform itself charges a small arrangement fee and the investor is often free to negotiate the interest rate directly with the borrower. As a result, investors have found that they end up getting a higher return compared with more traditional investments.
At Huddle Capital, we aim to provide unbiased and informative content to educate you on every aspect of the business to business lending market so you can stay informed and easily understand how every element of it works. Become one of our Huddle 100 founding members and you could benefit from £1000 credit when you invest £5000 or more. Find out more here.