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.
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).
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)
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…
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.
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.
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.
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.
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.
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 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 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.
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.
A lot of things happened during the last week, I would like to give you an overview.
Mintos waives secondary market fee
From November 1st on Mintos is no longer chargeing 1 percent comission on sales from vendors. All trading on the secondary market is free now. During the little more then 3 year long existence of Mintos the platform made about 60k through the secondary market. Why forgo this money? I guess this is a strategic move. Let me explain: The durations on the platform tend to get longer (paydays from 2 months to 3 years, car loans more then 5 years). I think they want to offer investors a early way out of the loans without costs (at least from their side). With this setup longer term loans get relatively more attractive. In my opinion investors should not care too much about the duration (at least for paydays and car loans), as these longer term loans won’t make it to maturity in a lot of cases. Buyback is activated earlier and further these loans come with installements which decreases the loan portfolio duration with every cent of capital which is paid back. But hey, I don’t care, less costs equals more yield for us. For new investors Mintos offers a cashback scheme: Register through this site (switch to english in the right above corner) and you get 1% cashback on your average investment amount during the first 3 months (you get paid on day 30, 60 and 90). (To be transparent: I get the same payments, but it is absolutely free of charge for you).
Swaper ends the cash drag fulminantly
For some days now I barely see cash on my account, mostly it gets invested the same day, plus I see a lot of loans on the site from time to time. The reason is: Swaper (respectively its mother company Wandoo Finance) offers loans to Russians for some time now. These loans weren’t allowed to be added to the platform due to regulatory requirements in the first place. They were gathered and put together on the platform once Swaper got the permission to do so. This big volume in loans immideately absorbed all liquidity on the platform. Due to the Russian loans the loan supply increases every day, we will see how sustainable this is, but for now, it is really exciting. There is a slight change to the VIP program. It used to be enough to fund your account with 5k to get 14 percent loans. Now 5k is still enough, but you need to have invested 5k on average for the last 3 months before you get admitted to the VIP. To register at Swaper, follow me.
Grupeer offers again 15 percent short-term buyback loans
For a short period no 15 percent Russian short-termers. Grupeer management first wanted to wait and see how high the on time payback rate is before they were going to increase the volume. My first loan redeemed last week and quickly after that a new loan was added to the marketplace. A lot more will follow in the coming weeks.Follow me to register with Grupeer (click on the right above corner).
Housers with 25 Euros cashback after the first investment
There are a lot of new projects at Housers. Therefor the marketplace needs more investors. To attract these, they offer a 25 Euro cashback after the first investment of 50 Euros. You get 25 Euros after your first investment, but you can’t withdraw this money until you have invested it in at least once project. When the project matures (or you sell on the secondary market) you will be eligible to withdraw that money. This means you have to invest at least 75 Euros. Register with this link and you’ll get 25 Euros after your first investment. Nice deal in my opinion.
This week transferwise announced that their borderless account now offers personalized accounts in Australian Dollars. I quickly tested that with some funds I have at Marketlend (Australian Marketplace) and received the funds the next day. I hope many more currencies will follow.