Grupeer accelerates the supply

It has been now over a year withGrupeer, since I found the marketplace. On February 17th 2017 I started my first investments on Grupeer. I really do like the marketplace, even if there are some shortcomings (read more below), although I have placed them in to the Top 3 of my Top 10 ranking.

Loan supply increases drastically

During the last weeks, there were always more loans coming to the primary market. Further the supply of Russian loans increased and should now be at about 200k per month. At the moment there are over 300k available on the primary market, all loans have 14 or 15 percent interest, some offer 1 percent cashback additional. You get the cashback paid out on your account, just after you invested. The loans have a duration of up to 12 months, some are only 4 months.

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The Russian loans are originated by two Russian companies where Grupeer holds the majority, they want to have the control over these companies so that they can intervene and monitor. There are no property projects at the moment, and I don’t have any information when a new one will be added. The first property project (Hotel Dominik) was repaid in time.

What’s missing

Still no secondary market available, although it was announced on the platform’s start. Ok, the loans are not long term, so we do not really need a secondary market. But I think a platform should have this feature, it is standard in my opionion. I cannot give you any indication when we will get a secondary market, but we will get one 😉

As it seems all loans have been repaid early or on due date (we ignore the few cases where it was one to two days too late due to weekends). There comes the question to my mind: How can this be? I have no clue and did not receive a satisfactory answer to date. I will stick with it and inform, when I know more.

Latvians are excluded

Coincidentally I discovered that Latvians, better put: people who live in Latvia, are excluded from the platform. I was really surprised to hear that, as Grupeer is incorporated in Latvia. There is an easy explanation though. In Latvia it is forbidden to sell debt to private investors. I have written an article about regulation in Latvia here, and this is the reason why Mintos had to restructure their loan contracts. It seems that Grupeer just took the easier path and excluded the Latvians, as it seems there are not many of them investing on Grupeer.

Conclusion

As I already said I really like the Grupeer, but it seems to be still unknown to the majority of investors. There were only financed loans of about 1.5 Million Euros, which plays in one league with Robocash I would say. It would have been more, but the supply was not there during the first months. I will post a follow up when I know more about the non existing delays.. Follow me to Grupeer.

Crowdestate: Update after more than a year

After more then one year after my first investment with Crowdestate I can finally give an update. My first investment was repaid earlier than expected (after about 14 months). Yesterday I got noticed that I received my principal back plus interest. I received 17.04 Euro of interest on my 100 Euro investment which accounts for a great XIRR yield of 15.22%. It seems as the appartements from my development project sold better than anticipated. I am completely satisfied how this one went. They put together nice project material and gave periodic updates, as I expect it to be. The coming weeks and months will show how my other projects perform. Here you can read my first post on Crowdestate from a year ago. To date, my expectations have been met by the marketplace.

Who is allowed to invest?

The marketplace is open to investors from all over the world, you just need to make a wirement to the platform’s Estonian Bank account. If you can’t do an EUR wirement (or if it is ridiciously expensive) you can use Transferwise or Currencyfair (you get 40 Euro Bonus until first of April, no joke, if you transfer at least EUR 1’000.- or its equivalent in any other currency). Only restriction is that you need to be at least 18 years old, or be mature in your jurisdiction.

Now with autoinvest – which is necessary

As I started to invest with Crowdestate there was no need for an ai. You had first 24 hours time to study the project and invest a capped amount. After 24 hours the cap was deleted and you were able to invest as much as you wanted.

The last projects which I saw were sold out within minutes after publication. This had to be done with an autoinvest. You can set the amount, duration and interest rate you would like to invest in. If you prefer you can further refine the settings and have different levels to choose from. In my opinion the settings are self explanatory. I will only set the top levels.

According to the platform there will be an increase of listings in the coming weeks (in my opinion the listings increased already during the last weeks)

Conclusion

I really like the marketplace, although you cannot underestimate the risks involved (you see that on the high interest rates for example). There are always a lot of things that can go south with development- and/or financing projects. As per the available documentation, it seems that the platform deeply checks all projects which builds trust for me. You can check out all the old projects to get a better understanding. In the end you are merely a shareholder than a creditor with most of the marketplace’s projects. Keep that in mind before investing. Follow me to Crowdestate.

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Viainvest reports solid earnings for 2017

Viainvest, or put it correctly: its parent company Via SMS Group, reported its unaudited financial statements for 2017. Unaudited means that this report has not been validated by a statutory auditor like pwc, ey etc. Let us assume, that the figures are correct 😉 My first thought: Why aren’t they capable to upload a nice copy of their statements? Or at least scan and upload it straight…? Does not change the figures though, but the first impression is somewhat dilletantic. Personally I would make sure that my figures are presented in a nice fashion.

Lower net profit due to expansion

Net profit decreased from more then 1.1 million Euro in 2016 to a bit more then 838k for 2017. This was expected as they invested in the Viainvest marketplace and went into new markets. You have to invest money to earn money ;). The figures look solid and I don’t want to go too much in to detail, as the interpretation is hard for externals. In bookkeeping (reporting) there is always the possibility to sugercoat. In the end, we are anyway scrapping only the surface.

Catching my eye

While screening the report I found it exciting that Via SMS Group is in posession of more then 2 mio in liqudity. Missing liquidity would be a warning sign. The situation is not that great though. If (when) there will be a recession, the defaults will rise and the capital buffer will diminish. There are not many assets in the balance sheet besides the loan portfolio. No(t much) property or any other bigger assets which store value and could be sold just in case. You can take a look at the balance sheet on page nine of abovelinked pdf report.

It gets really interesting from page 18 onwards…

…as there you see a lineup oft he loan quotas in the different (arrear) states. A bit more then a fifth is in the area of 90 or more days delay, and this number is deducted from the total portfolio. This is somewhat better then 2016, as you can see on page 19. We can therefor say: the expansion of the loan volume did not lead to a deterioration of the non-payer quota. Nice to know, we will see if this will be sustainable. Further you can have a look at the loan distribution per country, as well on page 19. On page 23 you have an overview of all subcompanies from the Group, which mostly belong completely to the Group.

Viainvest seems to penetrate into new business fields in 2018, as an e-money institution (like paysera) was founded. Plus, they do some sort of crypto secured loans…

Conclusion

As already said: sound results. Viainvest is for sure (together with Peerberry) one of the most (financially) sound marketplace in the Baltics.. One shall never forget that the the pack will be reshuffled during a recession. Further I want to express that if even 839k Euro in net profits sound very good, profit figures need to be taken with caution. Profits are not liquidity on the accounts, and liquidity is what keeps companies going. Profits can base on illiquid balance sheet positions, which maybe never can be liquidated (I know there are standards to avoid such things, but history has proven that this is not enough in any case ;)). I don’t want to talk down the annual report, but I think it is good to be reasonable skeptic and a good portion of common sense are never misplaced. All in all I have to say: Well done Viainvest!

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Insolvency of an UK platform, news and cashbacks

Today there is no new platform in focus, only some news and hints at cashback schemes.

Collateral in administration

This week it happened, Collateral was unreachable. The marketplace seems to be insolvent (?) and is put under administration. It seems like the FCA declined to give a definitve licence for operations to Collateral after the temporary licence expired (and they still operated for one month without licence afterwards)…. Anyhow, I will take a deep look at this case and roll it up. At the moment there is not much to do but wait as an administrator is put in charge. I too have some money there. If the current loans are serviced by the borrowers, there is a chance that investors don’t lose any money at all. But for now we have to be patient as the funds are locked in for an extended period. It comes to me as surprise that this happened in the European’s most established p2p market Great Britain. This case shows that diversification is crucial and that no money should be lent that is needed short-term.

Viventor offers 10 Euro Cashback

From now Viventor offers 10 Euro Cashback to new investors, if you invest at least 500 Euro for at least 30 days. If you went to Viventor through this blog, you will get the same offer after your 30 days are over. New investors can register here.

Currencyfair offers 40 Euro Cashback until April 1st

If you need to exchange some foreign currencies, now Currencyfair offers 40 Euro Cashback, if you exchange at least the equivalent of 2k Euro in any supported currency. This can happen with one ore more transactions, the only condition is that you use this link for registration. You can read here how Currencyfair works.

Estateguru now offers Spanish loans

Last week the first Spanish loan was funded on Estateguru. The property is located in Spain, but belongs to an Estonian Company. Therefor I don’t think we will see many Spanish loans in the near future. I stay in the Baltics with my investments, maybe I make an exeception if a “nice” Finnish loan turns up. At the moment new investors get 1% Cashback on their first three months investments. This will revert back to 0.5% as soon as there are 11’000 investors on the marketplace which should be the case in two to three weeks. Join here.

What can you expect from this blog in the near future?

I will make summaries of new marketplaces where I invested for a year or more (like Robocash for example). Plus there will be reviews of new marketplaces and an in depth look at Collateral. If you would like to have other topics covered, let me know.