This post is also available in: Deutsch (German)
At the end of last year I already published my top 10 platforms (in German only, sorry). After the first half of 2017 I draw up an interim balance. The listing reflects my personal opionion and can (and of course should) be seen different by any reader. I start with the Top 5 and give an explenation below the table for the placings.
|rank||platform||return (XIRR)||link to reviews|
Maybe this choice seems rather surprising, as the platform only started in February, but I would like to share my thoughts which led mi to this decision. Firstly I see a will for improvement at Robocash. Seconly the interest rates are attractive at 14 percent. Last but not least a don’t have to be active. I check in every 2 weeks or so and then I do nothing 😉 The AI just works fine, this is passive investing. The only shortcoming is the self imposed limit of 10k per Investor. But at some point this will be lifted.
Again, this may come as a surprise, but I like the platform and see it as a sleeper (ok, not so secret anymore 😉 ). I guess the platform gets overlooked sometimes, which is actually a good thing for me, as I can profit from the cashback offers. The platform works fast and the interest of up to 14% is nice. Grupeer plays in the top division with those rates. Shortcomings are the missing AI and secondary market. But this will change this year.
Again a new platform in the top 3. Sadly there is no secondary market at Lenndy nor an AI available. Up to 15 percent interest rates covered with buyback is best. Many investors seem to have a problem with paysera handling the transfers. I can understand this to a certain degree, it is somewhat painstaking to open and get your account verified, which I experienced myself. After that everything is fine and fast. Transfers are faster then from my bank account. Although I will make no friends in saying that I like paysera, I still say it 😉 Paysera (for me) is much better then its reputation. Maybe this will cost me some readers, but hey, I rather write what I think then appeal to the masses.
Last years top rank has lost some ranks. This due to inconsisentency in both the interest rates and loan supply.The first half of 2017 was minted by increases and decreases of interest rates and shortage and oversupply of loans. So my criticism is: What is an AI worth to me if the input parameters always vary? At the moment it seems like the situation is stable at Mintos, and they understood that investors money will be withdrawn if the interest rates fall permanently below 12 percent or the money is waiting for action on the account. I reall do hope that we see less volatily during the rest of the year. In my rating I excluded the fact that Eurocent, a loan originator, is in trouble with liquidity issues, but I want to comment on that situation. It was clear that at some point one of the many loan originators will get in trouble. What surprises me is the speed at which it happened. Eurocent was added just some months ago, and now they seem to have liquidity issues. I ask myself how good the due dilligence was in this case….
Actually Viainvest is a contennder for the top spot. But why did I place it on the 5th rank then? Firstly the platform is too bureaucratic for my taste. Investors need a proof of tax residency otherwise some none refundable withholding tax is applied. So far so good. Get the certificate and it is okay I thought. But then there came polish loans, on which in any case withholding tax is applied. Ok they seem to be offsettable with the tax return, but this takes time, and I did not see any proof so far that this actually works in reality. Further the loan supply was declining for a short period of time, but that improved really quickly. My funds always were invested and reinvested without delay. The AI works smoothly though I can close with a positive statement 😉
|rank||platform||return (XIRR)||Link to reviews|
|10||Linked Finance||8.95%||Linked Finance|
Estateguru gained one position and is looking into the top 5. I really liked the platforms evolution which surprised me in many aspects. Firstly the loan volume has increased and a lot of loans matured and were paid back in full. There were some loans which were paid back after maturity, but that lies in the nature of bridging finance. Real Estate development cannot be considered an exact science. There can always unforeseeable circumstances occur. What makes me happy is the fact that Estateguru strides along and has introduced a recent updates tab for its loans. With this improvement we can see what is going on if a loan is late.There is still room for improvement, but it seems to be on track.
Lendix loses some ground but is still ranked at the very good 7th seed. The loan quality is really strong (I only invest in French loans though). At the moment I hold 32 projects in my portfolio, and every project has paid its dues so far, no delay so far. The main reason for the seed in the lower band is, that there hardly were any new loans on the marketplace until March. Somewhere around March/April the supply increased. Surely the foreign expansion has helped to increase the loan supply. As per Lendix’ stats the picture looks bright in these regions as well, but for me, it is too early to make a conclusion on that.
I really do like Collateral. The interest is always paid on the 1st day of the following month, the support is fantastic really quick and the interest rates of up to 14 percent are great. I can’t rank the platform higher at the moment as they went more and more into real estate financing and away from their roots. There are many other platforms that offer the same kind of loans. I really like their pawn like loans, so I hope this niche does not dry out completely. Some of their car loans defaulted, but they were handled really well and investors lost no money. This is a big plus, we see that , at least their pawn loans are valued correctly.
On the 9th a Swiss platform. LEND started in 2015 and has shown an impressive growth story. I personally have met the founders of LEND and am really positive towards them. My investments are continuing, and are remarkably good given the Swiss low interest environment. I guess we will see much more good news in the coming months. I am aware, that for most of my (English) readers this platform is not of interest, but I do like them so I place them in my top 10. Maybe still worth checking out for you, it may give you some insights, how the Swiss p2p market ist working and evolving.
Linked Finance convinces with its loan quality. Until now, no late repayments nor defaults. What I don’t like so much is that the investors are charged a 1.2 percent annual fee. During the last few weeks there were fewer loans added to the market place. Reason for that? Increasing competition in Flender or others?
On the outside looking in….
Here you find some platforms which I like, but could not already put them into the top ten. Leading the way of the “outsiders” is Flender, which makes a great appearance, but it is to young and I have not made enough experience with it to allow them to the top 10.
This is it from my personal top ten after the first half of 2017. Different opinions are always welcome and I am ready to discuss them with you in here. Just post.