FOLKSTORY - Lender Captain Derek

Submitted by Mat Gazeley on


From the high seas, to bricks and mortar investment

Captain Derek Andrew’s work on cruise ships took him all over the world. Away from home for months on end, he made a work/life balance decision 17 years ago in order to see his daughter grow up. He gave up life on the ocean waves to became a River Pilot.

Derek has been a Lender for over six years, through other peer-to-peer lending platforms, but recently decided to move his investments from them to lend to local and rural businesses through FOLK2FOLK.

“I wanted to diversity my investment portfolio and read positive comments online about FOLK2FOLK, so I got in touch.

“I liked the heritage of the company and the old-fashioned human element but most of all I like the fact that it only offers secured loans. The bottom line is that I have to be able to sleep at night.

“You can be specific about where you want to invest, geographically and by sector (for example farming in the South West), He added. “I’m less particular geographically but the company’s ethics give me the feel-good factor of knowing that I’m helping a local economy somewhere in the country.”

Derek’s first investment, of £250,000, is in a project in the South West to allow a property developer to buy land to move forward with a product. A second investment of £35,000 is in luxury lodges, currently a thriving emerging market sector.

“Everything was taken care of within FOLK2FOLK and handled by solicitors. In both cases I haven’t had any contact with the borrower, although we are aware of each other. In each case I can expect to earn 6.5% on my investment, one over five years and the other which is flexible.”

Derek hasn’t taken every opportunity offered to him by FOLK2FOLK. “I have control over what or where I invest, which differs from some other peer-to-peer platforms where you have no input into where your money is lent.

“I also don’t have to be too involved on a daily basis but the returns are steady – not so high that they come with huge risks, and not so low that the returns will dwindle away.”

“You don’t have the compensation that banks offer if things go wrong. So only invest sums you are comfortable with. Be sensible and diligent, and be realistic,” Derek adds.

It’s important to understand that peer-to-peer lending is not covered by the FSCS and your capital is at risk. It is not a savings product.

To learn more about becoming a Lender like Derek, please visit

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