Quote Originally Posted by lawson View Post

I am new to p2p and am only on Squirrel because I prefer the 1.9% they set aside against future 'non-performing' loans but I did wonder does that mean the interest rate we see is gross or net?

Sorry for the dumb questions
FWIW, my view on reserve funds that I've got from elsewhere. It might be useful if I'm not diversified across a lot of loans. If I am diversified and they 1) don't reserve enough, then I will lose money at some point anyway, 2) reserve too much, then I'm missing out on interest, 3) they reserve exactly the right amount, then I'm paying the money now, rather than later when the loss occurs, so I'm missing out on some money now.