This was a question a reader sent me and I will try to answer this here, as the rate decline at Mintos affects lots of us (including me who has some cash sitting on the account). So, firstly keep calm and breathe, second analyze the situation. Payday and car loans yield now about 10 to 11 percent as it seems. At least this is what I saw during the last days. Some weeks ago the rates were lower. I see two possibilities: Either one arranges himself with the current state and is okay with lower returns (10% is still good), as you are still with an established p2p marketplace, which is profitable. Or you are searching for alternative investment opportunities. I will show some alternatives below (needless to say, there are more).
Peerberry is only a partial solution at the moment
Lots of investors seem to have moved their funds to Peerberry. My cash flows are now reinvested with a lag of one to two days. Alternatively the marketplace offers a real estate project, which yields 11%. I am expecting a further shortening of loans, but at the moments the situation is not that bad.Follow me to Peerberry and me to an older post about Peerberry.
Grupeer to the rescue?
With Grupeer you get your funds reinvested at 14 to 15 percent with a duration of some months to a year, of course including monthly interest payments and buyback. The marketplace countered the higher demand from investors with more loans. Here you can read some stuff about Grupper and with this link you get to the platform.
Iuvo works smoothly
Iuvo offers attractive interest rates, but the buyback covers only the principal, not the accrued interest. Sounds a bit uninteresting, but must not be like that. I checked the effect of that and came to a not so bad result. Further Iuvo offers a 90 Euro cashback, if you invest at least 2.5k Euro investiert (from 1k you get 30 Euro), this would cover for a lot of lost interest in the first year ;). You’ll find the cashback details in the posted link. Autoinvest works like a charm by the way.
Crowdestor just launched a new project…
… which pays 13 percent interest on a monthly basis. Interest accrues from the moment you make your bid, so it does not matter if there is an extended funding period. All projects are current or already paid back. At the beginning I was a bit skeptical about this marketplace, but I have to admit it developped quite good. You get a lot of details and descriptions for each project, I think it is worth checking out.Follow me to Crowdestor.
Bulkestate to offer 17 percent loan, with 3 months duration
Bulkestate will launch a 800k Euro 3 month loan on Tuesday, 28th August. This is a bridge finance of a mortgage und secured by property. If you are a big hitter you can get +1% with a bid of 10k or more, or 2% more with 25k, that makes 19% total. You can already check out the project on Bulkestate (click this link to get there).
Brickowner to offer 39% for two years
Just today Brickowner has launched a new development projects which is expected to yield 39 percent over 2 years. Please note, this is not a loan, but an equity project. Furthermore Brickowner offers 50 GBP cashback to new investors if you use this link to register and invest at least 1k GBP. You can spread that 1k on different projects, you just get paid the bonus only after reaching the threshold. To be transparent: I am a Brickowner (marginal) Equity holder, I bought shares in the company through seedrs last year.
Of course there is more
Envestio is a relatively new marketplace (and pays 0.5% cashback for 9 months, if this link is used to register) which I already know for some months, but was not convinced enough to try it out until some weeks ago. I will post a separate article about envestion in the next weeks (teaser: there are high yields, but high risks also). Then there is this platform which I recommend only to advanced investors, it is called Bondora 😉 Of course it is a well known platform, the oldest of continental Europe. You can invest manually, through autoinvest or api. Please keep in mind that the shown yield at the beginning looks fantastic, but will decrease over time, as there will be defaults, and these need time to recover. If you sell your good loans then as well as the bad ones this will probably result in a loss for you as you sell the good ones too cheap and they cannot create interest for you anymore. Better strategy is to let it roll and let the marketplace do its job. If you go manually, stick to Estonians and not only the high yielders… For the lazy guys there is this new product called gow and grow. I am still not a big fan of Bondora, but maybe it is something for you guys. In any case, you can get 5 Euro starting Bonus with this link.
I hope I was able to show you some alternatives which is no call to actually invest there. I am not a big fan of moving funds around every weeks, but sometimes I have to do it. And still I find Mintos a very good platform, especially for new investors. Of course there is more, I guess you will find something on this blog.