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.