Marketlend – p2p from down under

This post is also available in: Deutsch (German)

Some months ago I accidentaly discovered this Australian p2p marketplace and I put AUD 100 in three different loans. The investment was just made out of curiosity, as it is not that easy to find a Non-european platform where I can invest in (crowdo is the other actually in my portfolio). At that point in time little investors were still welcome. Some weeks ago they changed that and Marketlend now focusses on sophisticated and institutional investors. You can still invest with them if you like, but you need to confirm that you are an expert investor or have a net worth of more than AUD 250k.

I guess this platform is less interesting to most of you so I relinquish to lay out detailed about the registering procedure. One thing though: Deposits can be made through credit card, transferwise or currencyfair. Withdrawals are sent via bank transfer and are accompanied with high fees for overseas transactions. I therefor wait for my transferwise borderless account to get a personalized AUD account, but this could take several months from now. I don’t really care as this investment is considered as a gamble and I have no problem waiting months or years to get the money back at reasonable fees.

What does Marketlend do?

Marketlend was established in 2014 by Leo Tyndall (CEO and Head of Tyndall Capital LTD) and connects (corporate) borrowers and investors since then. The minimal investment is AUD 100.- per loan, the interest rates go as high as 20% (gross). The marketplace takes out a fee of 23% of all interest paid (only on really paid interest of course, not on capital). So the net yield for a 20% gross yield would be 15.4% (0.20 * 0.77 or 20% * 77%). But this is the most risky case. Mostly the yields will be around 12% (net).

Who are the borrowers?

Until now there are only Australian corporate borrowers which are in need of funds. Most of the loan applications are filed by mining, real estate or lending companies, (plus clinics and bus services) so pretty standard borrowers of the Australian economy. The risk is measured by a risk score, where 100 equals the highest risk. I have invested in 3 different credit score loans and all have paid back on time. Detailled and nice stats of Marketlend’s loan portfolio are available here.

I am really impressed by the available data for investors. Further the borrowers are really checked deeply and periodically. This looks very good all in all.

Conclusion

The platform is rather something for p2p enthusiasts and interested investors (from my European point of view of course). If I would be living in Australia a lot of my funds would go to work on that platform 😉 As long as I don’t have a cheap way to get my money back, I will not add anymore funds.

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