My Top 10 p2p marketplaces (per 31.12.2017, part one)

Ok, it is time again for my semi-annually top 10 p2p marketplace ranking. Actually I wanted to publish it earlier, but hey, even a hero needs a break from time to time ;). The ranking reflects my personal opinion (yours can be different). On my decision several factors had an influence, I am not solely focussed on return. This is my last overview with this layout. I will change it plus develop a scoring model, where some (predefined) factors will have a (wheighted) influence on the total assessment. There is already one new thing: I will split the places 1 to 5 and 6 to 10 in two different posts.

RankMarketplaceYield (XIRR)Link to the posts
1Mintos17.23%Mintos
2Grupeer13.91%Grupeer
3Robocash12.88%Robocash
4Lenndy13.17%Lenndy
5Estateguru10.47%Estateguru

Mintos

Mintos did it and is according to my opinion the best p2p marketplace (jumped from 4 to 1) available at the moment. Even the Eurocent problems could not change anything about that. There is no other platform who has a similar loan supply at the moment. Further there was a 5 cashback scheme in December (currently there is a similar scheme on Mogo loans until February 17th, and one on Lendo until the 18th). So currently the investment on Mintos is lucrative.

Just let us think about the costs such cashbacks genrate. I guess the loan originators and Mintos share the costs, but I don’t know for sure. The whole thing has its impact on profitability, so I am eager to see their 2017 figures. It seems Mintos wants growth at all cost.This cannot only be positive. I can imagine that Mintos never will be overly profitable (or must be). I guess the marketplace is seen as a source of financing by their owners. I will write down my thoughts in a different post on this subject. For what it’s worth, there seems no way around Mintos at the moment.

Grupeer

No change on rank 2 versus mid year 2017. Grupeer is still flying below radar in my opinion. Mostly you get 14% interest rate, sometimes additional 1% cashback on top. They have developped and rolled out a new product (Russian SME loans) successfully. They did not increase their business much more as they first look to set up everything in terms of regulation. This makes sense as this is the basis for more growth. Given the small number of loans I can ignore the fact that there is no auto invest so far. I track all repayment dates in my calendar. If there is a premature repayment I get a hint by email from support. So I am ok with that for the time being, but I expect something to be done in this regard in 2018.

Robocash

Well, Robocash loses 2 places and still gets away with bronze. Occasionally there was a drought in new loans, so we had a cash drag. At the time being the situation seems to have eased. The handling was never quite easy when changing the portfolio, I had to intervene manually (this is better now). Should you by accident have kicked in the withdrawal mechanism, it could have resulted in multiple payments (from EUR 50 on) which you really didn’t wanted. Further a loyalty scheme for the first 1k investors was announced, but never materialized (at least so far). It is not a big deal and I can life without a goody (especially on 14% yield), but I like to stay informed. I really understand their focus right now on increasing the loan supply further.

Lenndy

Lenndy as well lost one rank, but still stays at the great fourth place. Interest rates are declining since some weeks and are around 12 to 13%, depending on duration. They would like to introduce SEPA payments since months but can’t due to missing IT ressources. So we still need to use Paysera instead a bank account (I do like paysera, just for the protocol). It seems that there were some errors at Paysera during 2017, which led to a CEO replacement. This has nothing to do with Lenndy, but I think investors should know (our funds were always safe though). Positve is the loan supply, there is always something to invest in. In case of delayed loans, the platform provides regular updates which is nice. I like to be informed if something does not go according to plan.

Estateguru

The only «true» p2p marketplace in the top 5 gains one rank, congrats Estateguru. The loan book has increased drastically while interest rates remained the more or less the same. They created a information system which now shows to ivnestors, which measures were taken when a delay occurred. There is room for improvement though as it looks like that sometimes no action is taken even if there should have been one. Further there are loans which are clearly delayed for more than 45 days and should be marked as “default” which does not happen. But we could see that the first loan which did not pay back for a long time was auctioned. After one week the property was sold and investors got their principal plus interest back. This is great as it shows that mechanisms in place plus valuation work (even though the borrower finally paid)! Hopfefully this will be the same with coming loans (although I do not hope we need to test this too much all 😉 ).

Regulation of p2p loans with focus on the Baltics

The p2p market is relatively young, the first continental European platforms started back in 2008. New business ideas often are that new, no regulations and laws are in place. In this setup the regulator and the marketplaces need to work together to creating a framework which is compatible with the current legislation. This is partially a long process which needs an open mind from both parties. Sometimes these new business practices contradict to the legislation in place and it is not possible to make both compatible. This happened in the case of Lenndy, a Lithunian marketplace, which did not receive a definitive licence to operate from the Lithunian Centralbank (they operated under a provisional licence until then). The problem was that in Lithunia only “real” p2p lending (= borrower and investor meet directly through a marketplace) and crowdfunding are allowed. The whole buyback stories, where securitized (= already issued loans) are sold to investors was prohibited by the Lithuanian Centralbank. So we take a look at Latvia (where to Lenndy migrated).

Latvia, hotspot for p2p marketplaces

It’s no secret that mostly buyback platforms have settled in Latvia. The current regulation there is mostly ok (for the moment) with this form of financing. The regulator has a close eye on that sector and has sometimes a say. Have you asked yourself why Mintos for example amends its contracts, mostly the Latvian’s, from time to time? That’s the reason. It is a myth that there is no regulation of the p2p sector in Latvia. It is rather the case that there are provisional legislations which are not binding to date.

The regulator asks the marketplaces for even more things and is not stringent (and sometimes contradictive) in its claims (according to a lawyer I know). This results in a more or less chaotic environment where the marketplaces have to maneuver. Most of the platforms will in the end get a definitive licence in Latvia, as they can afford the manpower for dealing with legislation. It comes as no surprise that since spring 2017 only one new platform stepped on to the Latvian carpet: Peerberry. This is the platform of Lithunian loan originator Aventus Group. They seem to be confident to be able to fulfill the regulatory requirements.

These platforms operate in a grey area of regulation and there can always be the case that there will be a court ruling, which forces marketplaces to take certain measurements. It has happened in August for example, when all hipocredit loans where bought back from one day to the other. There were speculations that only good performing loans were bought back etc. Fact is that at that point of time a Latvian court ruled that selling private debts to private investors is illegal in Latvia. This case came up due to questions of the banking regulator and the consumer finance protection organization. As per a similar reason the Latvian Mogo loan contracts were restructured. The Latvian court rulings affect only Latvian loans and originators who offer loans in the country. Other regions are not affected by the Latvian rulings. Changes in legislation in Georgia led Mintos to change the structure as well (respectively the loan originators). Per January 1st 2018 the regulation in part of the consumer loan sector changes, so here as well some measurements must be taken. You see, there will come a lot of work for the p2p platforms. I do not want to create any fear with this post, but I think we as investors should be aware of the circumstances in the markets we invest. It is pretty normal if you open up new business fields that the regulator comes and wants to fulfill its assignment. Regulation in an adequate doses is beneficial for all parties!

Estonia, the next destination?

In the Baltics, there is only Estonia left which is home to some p2p Marketplaces already. Especially crowd investing platforms from the real estate sector are already there, like Estateguru, Crowdestate and Bulkestate (which was founded in Latvia, but moved to Estonia due to a better regulatory environment for real estate platforms). But there are more examples which offer real p2p: Investly, Monestro, Bondora and Omahara (there are few more). What was missing were the buyback platforms.

Latvian buyback platforms tried during Summer to get in contact with the Estonian Regulator to discuss scenarios under which they could relocate to Estonia. The Estonians blocked though, as per Estonian Law a marketplace (like Mintos, Swaper, Twino, Viventor etc) must not belong directly or indirectly to a loan originator. This is why their plan was relinquished.

Buyback platforms exist despite this law in Estonia (at least one): Die Iuvo Group (moved from Bulgaria to Estonia) is located in Estonia and possesses the needed licenses (financial company und payment agent) to operate in Estonia. I don’t know how the setup is with Iuvo to make it work in Estonia, but it works 😉 I know that there is one platform from Latvia which will announce its move to Estonia shortly as well. It seems there are ways for buyback platforms to get established and operational within Estonian boarders.

The case of withheld interest

What since last summer is courant normale in Lithunia, is only practised in Latvia by ViaInvest: Withheld interest. One can ask here: Why does ViaInvest do that and other marketplaces not? The situation in Lithunia is clear (although there seems to be a free threshold of EUR 500 from 2018 on): Interest received by non Lithunia residents are subject to a partial withholding tax. The Lithunian Centralbank has decided in that way. What about Latvia? For Latvia as well a withholding tax should be applied to foreign investors, but it seems to be only a provisional rule and marketplaces are not obliged to follow at the moment (according to the info I got from my known lawyer). At least the marketplaces see it that way, although the authorities might have a different opinion. As long as there is no definitive ruling in that matter the platforms will continue as did (ask for certificate of tax residency, withhold taxes on Polish loans, or nothing at all). According to my contact only ViaInvest is dealing the right way with the withholding tax. I guess we will therefor see other platforms to play along and ask for certificates at least. Just for your info to be prepared (and not surprised ;)).

Conclusion

You see, there is a lot going on in the p2p sector. As time passes by the platforms and the authorities will settle their differences. Until then, it will be interesting.

If you would like to discuss this issues, just post a comment.

Investly to launch a campaign on seedrs in January

Investly used to be one of my favorite platforms last year (German only), but then I quit (German post only). There was and still is too much demand from investors, which pushed yields down to approximately 8 percent (in EUR). The situation is more or less the same, so I just reinvest the installements I get back from my two loans there. As Investor the platform is nothing for me right now, but as a shareholder I am on board. So I am very pleased that Investly announced that they will launch a public funding round at Seedrs in the first weeks of January. I recommend to open an account with seedrs right now if you wish to join this project, as the process of verifiying your identity can last some days. Follow this link to register.

What does Investly do?

Investly is an Estonian p2p platform where sme’s can list their invoices and sell them to investors to bolster their liquidity. This is comparable to Advanon from Switzerland to some extent (sorry, post only available in German).

In the beginning Investly funded loans for sme’s, but recognized quickly that there is more demand for short term liquidity injections. So they started to offer invoice financeing as a consequence and they had two products to offer. Some time after dancing on both parties they realized that there is more potential with the invoices and the loan origination was more difficult. So they decided to focus only on invoice financing. First in Estonia only and then in the UK. Since this decision the volumes grew every month in both regions. The growth rate for the UK is not that impressive at the moment, but I guess there is a lot of upside.

Key Data

There are a lot of unknowns in there, but what I can say is the following. Minimum funding size is planned to be GBP 500k with a max capped at 2.5 Mio. They start with a valuation of GBP 6.67 Mio which is a lot in my opionion. I do not have any financials to date, so I have to rely on my gut feeling and on the monthly volume stats which I get from Investly. As said before, the planned launch date for this round will be January,, but it could take longer. There is always a lot formalities etc to be done which can slow down the process.

Conclusion

I guess I will join Investly as a shareholder as I like their concept and see a lot of upside especially in the UK. The valuation seems to be high, so I have to reevaluate how much I will be buying. Take a look at Investly, if you do not know the marketplace already.

Flender has a clean slate and a special offer (50 Euro Bonus) up to December 17th

Flender started about 11 months ago. During this time the marketplace has evolved. Now we got a virtual account (huge plus, as it is tedious to make a wire for every investment) and an overview of repayments. These are only two of many improvements which really are helpful. You can read more about Flender here.

What about delayed payments?

As I wrote before one part of their credit check is that the borrower has enough liquidity for the next three installements. Is this requirement not met the credit inquiry gets dismissed. Until now the credit choice seems to be very good as there wasn’t a single late payment on any loan (according to CEO Kristjan Koik). A look on my payment overview confirms that statement. The whole thing has to be taken with a grain of salt, as only few loans have been funded to date. These results are not statistically significant, but anyway a very promising start. Below you see my overview of 2017.  The design won’t win any beauty contest, but is useful. That’s everything that counts in my opinion. We can only see the data in aggregated form, not on single loan basis.

Overview 2017 of my Flender investments

How does Flender perform credit checks?

First of all a director of the potential borrower has to sign up to the platform and give some details about the company. With this data a superficial affordability check is performed. If the result returns positiv, Flender gathers further information through Equifax. If positiv, more information is requested from the borrower. These documents are the currenct profit and loss statement plus balance sheet,  audited financial statements, bank statements from the last 6 months, an expected profit and loss statement for the next months, tax certificate plus a breakdown of all liabilities. Afterwards the loan purpose is rechecked, the age of the firm and the ownership structure as well.

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Out of all this data a credit report emerges, if this report is positive it will presented to the Flender Credit Commitee. The commitee has the final say and approves or declines the loan.

For me the taken steps guarantee a complete credit check. I think the check of the bank statements is essential and helps to get a lot of information and puts together a picture how the company really is doing.

What is not that positive at Flender?

The loan supply is good, but only because the loans take ages to get funde completely 😉 Jokes aside, this is something which jars on my nerves. At least nearly everytime a loan was funded another was added on the marketplace. So the supply is there, but the funding is the problem. During the funding period investors money does not bear any interest.

Flender with a special offer until December 17th

To get some loans funded Flender has made this special offer. If you invest at least 450 Euro into a loan, you will get EUR 50 cashback, which is more then 10 percent. To be eligible for the bonus you need to sign up through this link and invest at least 450 Euros (you are also eligible if you already signed up). Afterwards you can write to the support to get your 50 Euros. Currently there are 2 loans available to fund.

Happy investing, don’t be shy and post your questions.

Mintos with a new cashback offer of up to 5%

The last quarter of the year is mostly the best for invstors, as the marketplaces try to attract as much new money as possible to close to year on a nice run. Therefor they offer some really nice deals (cashback, bonus etc) to investors. Flender kicked it off earlier and Mintos goes much further. Plus, new investors can take advantage of the regular 1% cashback on top.

Mintos offers up to 5% cashback until 31st of December (applicable only primary market invstments). The cashback level is related to the duration of the investment. In below chart you can see for which duration you get what cashback. There are two requirement which must be met to participate: 1) You need a Mintos account (if you don’t already have one, use this link to register and get 1% additional cashback during your first 90 days with Mintos). 2) You need to enroll to the program, click on enroll in your Mintos account. That’s it, you will get your cashback within 6 working days after your investment. I checked the terms and conditions, you are free to sell your investment at any time. Even if your loan gets bought back the next day, the cashback belongs to you.

Um daran zu partizipieren, müsst ihr dem Programm beitreten

Why does Mintos offer such cashbacks?

I assume there are at least two reasons. The obvious: They would like to attract as much new money as possible by the year’s end. Second they try to convince investors into longer duration investments. I suspected that already when they decided to waive to secondary market fee back in November. At the moment you can get up to 14.7% payday loans from Mozipo with a duration which allows you to get additional 2 to 3 percent cashback on top. As the paydays naturally have high delayed quotas, I assume the bigger part will be bought back prematurely to their maturation date. Right now you can find about 23.5k loans matching these criterias: >24 months & buyback. Just invest as much as you are ready to bind longer as there is no guarantee for liquidity. There are always risks involved, even with buyback as the Eurocent case demonstrates. So be selective about your loan originators. If you haven’t an account yet, now is the time to get one and receive additional 1% cashback for your first 3 months of investing with Mintos.

Happy investing and gathering cashbacks

November flashback

The year comes to an end shortly, but before I will publish my semianually Top Ten marketplaces I would like to take a look back on what has happened during November.

Peerberry – a new marketplace (only EUR so far)

I was a little surprised with the launch of a new platform in Latvia. I thought they would wait until new regulatory instructions become live, but I guess they know they situation better then I do. Some days ago I started with my investmenst and
set up an autoinvest profile.Peerberry works like a charm, one loan was repaid prematurely and my autoinvestor just reinvested the funds the same day. I saw that there was a leftover of 2 cent on my account, which is due to my AI settings as I limited it to EUR 10 per loan. I need to check if I can optimise this a little bit.

Mintos offers now loans denominated in GBP

I released a post on this currently, you can read my thoughts in full here.

Estateguru handles its first default withouth any damage to investors

I was really glad to see this loan (specifics under recent updates) put on auction to get the money back for the investors. It took only one week to get the funds plus interest. I do not know who bought the property, but I don’t really care. It has shown that Estateguru’s LTV are reasonable and suitable if needed to process. There are other loans in trouble and I really hope they can be handled the same way. We will see more in the coming weeks, but this is a promising start, at least to me. I have to applaud Estateguru as they informed every investor of the platform about the process, not only the involved ones. This was really transparent. More info on property investments here.

Swaper again with a new design

For the second time this year Swaper changed its appearance. The colors are

Swaper AI Portfolio

a matter of taste ;). The marketplace gained speed which I like. They merged the autoinvest profile and the portfolios (to be honest, I never understood the difference anyway). Now they are referred to as autoinvest portfolios, the settings were copied, at least from my AI’s. I have a useful Website for you if you want to check if Swaper has some loans to invest manually in. P2P Monitor shows you if there are loans and you see when they were put on the marketplace. This gives a hint when to check for loans 😉

My Newsletter

I started my newsletter service in October but just sent the first one out last week. I sent through some special promos. If you sign up to my newsletter you will get news about special promos (only once a month or less, as I really hate newsletters myself ;)). A further advantage with joining my newsletter is that you automatically get informed about new posts on my blog.

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Outlook

Some investors approached me about cryptocurrencies. I will write a three part series about cryptos (mainly Bitcoin) and bring it together with p2p.

Mintos (Mogo) now offers GBP denominated loans

Frankly speaking, I was a bit surprised by Mintos’ accouncement that from now on non-bank car loan lender Mogo offers loans in Pound Sterling. The reason for my surprise is the timing for this move. On twino and on some other European p2p marketplaces GBP loans are already offered for some months now. Given the UK’s history with p2p and the general openness of its investors I had anticipated this move much sooner (or Mintos were reluctant because of Brexit or so)… Whatever, this presents an opportunity for UK investors (and all who like to invest in GBP equally) to invest in high yielding car loans, without currency risk.

What to expect?

Mogo offers Polish car loans with a duration of 6 to 48 months with yields from 8.5 to 13 percent. The loans are equipped with a buyback freature which means that if a loan is overdue for more then 60 days, the loan will be bought back and the investors will receive all outstanding capital plus accrued interest. I expect that once the demand is there other regions and loan originators will follow to issue loans in GBP.

How to add GBP?

Mintos has an UK bank account with own sort code and account number with transferwise. You can therefor just make a local ebanking wirement which should arrive in minutes. The other possibility is to exchange foreign funds directly at Mintos.

Who is Mogo?

Mogo is a profitable car loan lender from the baltics which operates now all over Europe. Their loans have a low default rate of about 2 percent (according to Mogo). One interesting fact is, that Mogo shares the same adress with Mintos in Riga, Latvia. They are not listed as a related party according to IAS 24, but I guess they are related to some extent. I have made this suggestion with my last post, and Mintos so far has not confirmed or objected ties.

If you want to join Mintos now, use this link for registration (link leads you to Mintos.com and then you register) as you will get 1% cashback on your average investment over the first 90 days. The bonus shall be paid every 30 days directly to your investment account. I have put together lots of post on Mintos during the last months, you can read them from here.

Peerberry – my live test (incl. autoinvest)

Last week I introduced aventus group’s peerberry to you. Currently my money has arrived the marketplace, so I think I can give a little update. By the way, the platform is not only limited to European investors, but open to some countries in South America (Brazil), Asia (China, Thailand, UAE etc) Australia and New Zealand plus South Africa (and others). This comes as a little surprices, but hey, it is no different with Mintos, where they welcome nearly any investor from any country (USA as an exception).

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Deposit

My deposit was sent on its way in the morning and I did not reckon that it would get there the sam day, but it did. At about 10 pm I got the deposit confirmation in my mailbox. Actually I guess that the money was there way earlier, but only confirmed at this time. Maybe 10 pm is the time they are processing the confirmations or the platform needs some time to process the deposits. Doesn’t matter anyway, money is there, good to invest 😉

Investing and autoinvest

Firstly I purchased one loan manually to check how this is going. It went smoothly and quickly. After that I have set up an autoinvest (see picture)

Peerberry Autoinvest Settings

I expected the autoinvest to immedeately invest my funds, but nothing happened during the following minutes. I rechecked my settings and could not find an error. So I thought I just wait until the next day. Next morning I logged in to Peerberry and saw that everything was invested the day before. So it happened between 10.15 and 12 pm. I can’t figure out any specific time. The autoinvest does its job. I couldn’t manage to choose more then one setting with the countries (either Czech Republic or Poland), same with loan status (either current or delayed). This means that at the moment I have to set up an autoinvest profile for every country I would like to invest int. Well, maybe it is not a bad idea at all to have several autoinvests running, as my experiences with swaper show. At the moment there are enough loans available, but you never know…

General impression

Basically I am positive towards the marketplace. Everything is easy to figure out. I like the layout, as it is modern and subdued. Some things are not as they should though. If I for example change my data, a thank you for investing message pops up when saving. I guess they will change these minor things down the road. In some weeks I will be back with more news on buybacks, reinvestments etc.Follow me to Peerberry’s registration.

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Peerberry – new p2p marketplace with buyback

Peerberry is a brandnew p2p marketplace which offers short-term payday loans with 12% yield and buyback. At the moment there are Czech and Polnish loans available.

Who is behind the platform?

Peerberry ist the name of the marketplace AV Marketplace SIA which is located in Riga, Latvia. This company is owned by Lithunian loan originator Aventus Group, which offers loans from Czechia, Latvia, Poland, Georgia and since 2017 from Ukrania and Kazachstan. Aventus Group was founded in 2009 and is according them profitable ever since. Aventus has 500’000 clients, 16’000 new clients sign up every month and has more then 120 employees. Every month more then 2.5 Million (Euros) loans are originated.

How does buyback work?

Buyback is activated automatically when a loans is overdue for more then 60 days. The capital plus accrued interest are being covered with buyback, actually it is working like Mintos’ buyback (which makes sense given that aventus used to be a loan originator on Mintos). There is another opportunity, called “sell back” where you can cancel your investment and get your capital plus interest after a 14 day waiting period (like DoFinance, but with the interest being paid in any case). This option is only available for longer term loans which is not defined at the moment (what loans qualify as longer term loans). There are only loans on the platform with a duration of up to one month.

Who can invest?

The platform allows access to investors from all over Europe (plus Switzerland, Russia and Ukraina), although at the moment you cannot select Switzerland as country of residence, but I am working on that). The identity is only checked after you applied for a withdrawal. Then you have to provide your identification documents. I recommend performing a withdrawal with a small sum after your deposit has reached the account. So you are sure that everything is set up correctly and working, if you later want or need to withdraw your funds.

What else?

There is an autoinvest feature, but I was not able to use it to date as my funds are on the way to the platform. The minimal investment amount is EUR 10. There seems not to be a tax withhold at the moment. At least I was not able to find anything in this direction, so I guess there is none.

Conclusion

This is an alternative to other p2p marketplaces and comparable to Swaper, Viainvest, Robocash and DoFinance. I will post an update once I have gained some experience. Follow me to registration.

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Real Estate Investments with p2p part deux (UK)

Some time ago I gave you an overview of Baltic and European real estate p2p marketplaces. Today I will continue with an overview of the British p2p platforms from the real estate sector. There are so many that I won’t be able to cover all of them.

Different funtionalities

Firstly I would like to make a distinction: Mainly there are two different types of marketplaces. You are either lender and invest in loans and get interest for that, or you become equity owner and participate from the objects earnings and value growth. What all marketplaces have in common is that you better have a UK GBP account in place (for most it is mandatory). If your are no UK resident, the Transferwise Borderless Account (review only in German to date) provides a free UK GBP account for you. Many platforms offer a cashback or sign up bonus to new investors. Check my overview to see which platform offers what kind of bonus.

Loan-Marketplaces

Lendy (aka Saving Stream, interest up to 12%)

Lendy is one of the older p2p marketplaces and has successfully funded loans for a multiple hundreds of millions. With this marketplace you invest in loans and get your interest added monthly (if your loan is current) to your account. This works still fine. There are many loans in default at the moment. This doesn’t necessarely mean that there will be losses to investors. To date all loans in default were handled and investors did not loose a penny. Given the increase in defaults declared I am not sure if this situation will remain. I guess investors need to prepare to some losses, as the provision fund in its current state is not able to cover all losses. Customer support has never been their strength, and it has never been quick or friendly. But they managed to get worse during the last months. More on Lendy’s functionality here… and nearly I forgot, there is a secondary market in place.

Collateral (Interest up to 15%)

Actually Collateral has started as an online pawn shop and took watches and jewellery as security. Over time they moved towards property lending. According to the platform they are still interested to have watches etc as loan collateral, but the supply is not there at the moment. If this is true or it is just that property deals are more lucrative because of the deal sizes… I don’t know. I would understand the platforms move into property but would really appreciate some pawn loans for diversification. It remains to be seen how good the property deals are as they just started some months ago. There is a secondary market.

Landlordinvest (Interest up to 20%)

Landlordinvest offers the highest max returns. The CEO stated in an interview that they would like to create a balanced risk return portfolio as a strategy, so not all loans will be really risky. I have already noticed a loan with single digit return, but also others in the range of 17 to 20 percent. As the platform began its operations only beginning this year there is not much of a track record available. What I can say is that some loans were redeemed (early) and no default occured so far. The deal flow is limited but gets better month by month. The funding period takes time due to few investors on the platform, but the bids get a cashback of 3 to 4 percent (annualised rate) for compensation of the waiting period. A secondary market is live since the beginning.

Funding Secure (Interest up to 13%)

Funding Secure as well started as a pawn broker like Collateral, but already in 2013. After some loans the property part took over and there are few other loans now. There is a huge loan supply, raingeing from several thousands to several 100k. The loans are announced by email some hours or a day prior launch date on the platform. The platform has to deal with lots of defaults which comes not as a surprise to me, as they are in business for more then 4 years now. Secondary Market is available.

Moneything (Interest of up to 14 percent)

The Things, how the employees refer to them selfs are very involved and do a lot of things the correct way for Moneythig. The founder Ed (thing ;)) and his familiy handle the communications very well. They recently had to deal with three defaults, but informed transparently. One of the defaults was handled in the meantime with no loss to investors. The other two are followed closely. For me this marketplace behaves exemplary towars its investors and communicates really well. It seems they know to handle their business. Of course there is a secondary market available.

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Equity-Marketplaces

Property Moose

Property Moose came to my attention nearly a year ago. The platform offers fixed rate loans rarely. Mostly they offer buy to let (BTL) or buy to sell (BTS) projects. Investors participate from the rental earnings and the value increase at the point of sale. There are yield projections which in my opinion mostly do not match what really will be earned, the value growth depends on the market development. At the end of a project period there will be a poll if the property should be rented again or be sold. Each investor has a vote for every pound invested, so the bigger investors have more influence. A secondary market is available.

Property Partner

Property Partner is somewhat comparable to Property Moose, but mostly does BTL projects. The properties are in a higher segment and the projections about the yields is more realistic. Secondary Market is available.

Uown

Uown is also in the business of buy to let properties with a sale when the projects predefined term ended. It is a really new platform which has only completely funded one project and two are still in the funding phase. There is not much to tell about, besides that there is no secondary market at the moment. I will invest GBP 20 in both open projects to gain some insights. 20 GBP is the minimal investment amount.

Brickowner

current Brickowner project

And there is Brickowner which cannot be placed in any of the above categories. Retail investors can invest in projects which normally would only be open for big hitters or institutionals. Now we can invest alongside the pro’s, and this with as little as GBP 100. The projects vary, there are BTL, BTS and sone sort of loans. Currently there is one project open for funding, where we can invest in a portfolio of loans issued to developers. The duration is set at 2 years with a 7.5% annual yield. The advantage of the project is that the Lead Manager (Nash Asset Lending) participates with 10 percent of its own money. In case of losses, these 10 percent will firstly cover any occuring losses, so they build a buffer. Further Nash Asset Lending will cover any losses above these 10 percent, should it be necessary. They are convinced that their projects are of great value, so they offer this additional security. We could say that there is some sort of buyback in place. I cannot tell how financial stable Nash Asset Lending is, but I trust Brickowner’s due dilligence in this case, as any loss for Brickowner Investors would be fatal to the platform. If you are interested in Brickowner, use this link for registration and get GBP 50 as soon as you have invested GBP 1k in total. This offer is not timely limited.