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A little more then one year ago Crowdestor has started its services and begins to thrive right now. The first ever financed project was paid back some days ago (others already repaid before) and there are three investible loans on the platform right now. Afourth will be online for funding on Wednesday morning, more on that at the end. First i was a bit sceptical about the marketplace or to put it better, the first project. With some time past now, I am more confident about them then a year ago. For sure the projects are of higher risk, but you get compensated by very attractive interest payments (like Kuetzal or Envestio . Interest starts to accrue from day one, which of course an advantage. I am convinced that at some point at least one loan gets delayed or worse. To counter that a bit, I guess the buyback guarantee fund was founded.
Buyback Guarantee Fund
On March 1st Crowdestor announced that they had launched their buyback guarantee fund and initially funded it with 50k Euro. Further there will go one to two percent of each projects fee into the fund. Such a mechanism we already know from Lendy, formerly Saving Stream. They believe the fund will be worth about 100k by years end. Achievable if the funding of loans reaches 2.5 to 5 Millions of Euro. Seems to be quiet a bit, but given the rate at which new projects are going live and funded, I believe it is doable. I just question how much 100k will help when compared to a 500k project. It might be enough, as mostly loans default down the road not at the beginning and if there are securities in place. Let us hope we won’t have to find out ;). Last but not least the funds rules are not clear to me. I hope the marketplace will soon define them clearly. n
New Project on Wednesday at 19 percent
Wednesday morning a new project will go live for 520k Euro at 19 percent yield and very short duration of 9 months only.. My gut tells me this one will be funded quickly. I do not have more information on this project currently. It looks like a real estate project in Riga. Follow me to Crowdestor.