Short update: Bulkestate and Flender with additional cashback

For some weeks now we regularly see new projects on Bulkestate and they seem to get bigger. On Monday there will be one with 380k Euros. Nothing too special, but still a bit special ;). The yield starts at 17 percent for everyone, investors with more then 10k get 18% and the ones willing to invest more then 25k get 19%. There are some things I like to point out though. It is not a secured loan with a mortgage, you buy equity with this project, so you are a partial owner. This means if there are problems, investors get paid at last, but at least you own some bricks 😉 Of course I exagerate, but the high yield comes from somewhere. There is a new financial number which I did not know before: FLTV (future loan to value), it is 33% in this case. Looks relatively secure doesn’t it? Not really, I have my problems with this number. I checked the valuation report on the website and it says (if I can trust google translate, as my Latvian is not so good ;)) that the whole project is valued at 1.141 mio Euro after renovation. So 380k / 1.141m equals that 33% FLTV. My problem is, there is no loan, only equity holders. How can we talk about a loan to value ratio? Plus the value only holds if everything goes accoring the plan. I do not say this project is worse or better then others, but I think you should keep in mind these infos before investing. It is not the usual mortgage deal we are used to from Bulkestate and there will be more projects like this (actually it is the second equity investment). The project goes live on Monday, 16.00h. I expect it will be filled rather quickly. The interest rate is tempting and other comparable projects filled quickly. Check out the project and register as investor

Flender with special cashback for autoinvest usage

Yes, you read that correctly, you get extra cashback for using the autoinvest function until end of July. I expect this promotion will be extended a month or so. Autobids from 150 Euro get 5% cashback and bids from 300 Euro 10% cashback (unlimited amount). Additionally new investors which register through this link, get additional 5% cashback (unlimited). So at maximum you can get 15% cashback, on a bid of 300 Euro this is 45 Euro in cashback. Really exceptional. How can the platform afford that? CEO Kristjan Koik has his own approach in advertising. He believes (and I do as well) that it is better to use the word of mouth instead of paying lot of money to online advertising. With this approach you are sure that every Euro you pay, there was a benefit for the marketplace and its customers and investors. I am happy with my investment experience during more then one year. To date I did not have any delay or default. I read from another investor that there was a problem with one project which was in arrears. As it seems it is back up to the original payment plan. Ireland seems to be a very good place for p2p investors, the borrowers really are great payers as you also can see with linked finance and grid finance.Follow me to Flender

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.

New cashback offers and investment opportunities

Due to the cash drag situation at some platforms I have shown you some possibilities to invest your funds.  Of course real estate platforms are a good choice as well.  Let me give you an overview of current opportunities and new cashback offers.

Up to 90 Euro cashback at Iuvo Group

Beginning of this year I have let my investments run out at Iuvo Group as my results were not really convincing (relative to other opportunities at that time). Some weeks ago I rejoined them as I received a cashback offer for old investors to rejoin.  Since then my yield is (per XIRR) about 10 percent, on the other hand the platform shows me 11. This is a far better result than last time. This time I did not invest in overdue loans, which seems to be the more fruitful strategy, but it could be just luck. My number of loans and my investment horizon are to small to draw a relevant conclusion. Now there is a cashback scheme for new investors if you invest at least 1000 EUR (or an equivalent in Bulgarian Currency), and get 30 Euro. If you top up your investments by at least 1500 Euro during your first 2 months on the platform (total 2500 EUR) you get additional 60 Euro as a bonus. Necessary steps to be eligible:

1. Get in touch with me via contact form, that I can send you an invitation
2. Register with the same email at Iuvo
3. Transfer and invest at least EUR 1’000.-.
4. You get your cashback credited within 2 business days

Still 1% Cashback at DoFinance

Still 1 percent cashback (with this link only) for new investors for their deposits within the thirst 30 days. I don’t know how long this offer will stay valid, it could be cancelled anyday. Look at DoFinance’s functionality..

Grupeer opened up for new originators

Grupeer started a new product some weeks ago with Russian shortterm loans of 2 to 3 months with a buyback protected yield of 15 percent.  This week there were no loans of this kind added to the platform. I believe they would like to see first a redemption of the first loans, which are due end of October. In the meantime they added more loan originators to the platform with some nice loans yielding 14 percent for up to 12 months. There is always something to invest at Grupeer.

Bulkestate with a new project and one in the pipe

Now the newest Bulkestate Project is online: Hotel appartements in Bulgaria which will be sold with a profit. The duration is 8 months and the yield is set at 13.8% which I consider attractive given the shorter then usual duration and low LTV of 35 percent. In some weeks we should see another (development) project in Riga with a nice yield. Check out Bulkestate  and open a free account. This makes sure that you get news of the platforms newest projects.

Bulkestate Hotel Complex

Just an info to the functionality. You can’t hold funds in your Bulkestate account at the moment. You place your bid and then get an email with payment instructions based on which you can make your transfer and pay for your bid. A little bit unconfortable I know, but a solution is in the making. So Investing should get easier down the road, but as always, these solutions take time to be developped and appear on the platform. It is never easy when money is involved as regulatory requirements have to be met for our own safety.


Housers offers 50 euro Cashback until October 31st

Invest 50 Euro and get additional 50 Euro to invest. Nice deal, isn’t it. Valid through October. Just use this link to register and you are entitled to receive your cashback once you made your first investment. Please note: when you

Housers Hostel

make your investment they ask you for a promotion code, this has nothing to do with the cashback offer. It is a special promo for investors to receive more interest when they invest more then amount X, as stated in the project description. You can leave this empty. At the moment there is such an offer, check out the image.

Flender offers 10 percent cashback in October

You just have to register through this link and invest 2500 Euro during october and you get at least 250 Euro cashback. Your bid date counts, it does not matter if the funding period goes into November. If you bid by end of October, you will be granted your bonus, even if the project would not complete funding at all.

Flender from my investor’s perspective

Some months ago I published an interview with Kris Koik, Founder and CEO of Flender. The platform just launched some months ago und we only saw slightly more then 10 loans on the public marketplace until now. Public marketplace? Yes there is a private market place as well, confused? I’ll try to explain:

How flender works

Flender has a special feature, which comes from the basic idea, which wants to offer a platform to friends. This is where the name Flender, has its origin. It is composed of “friend” and “lender”. The idea behind is that if someone needs money (no distinction between private or sme loans), the borrower has the possibility to launch a private borrowing project firstly, which can only be seen on invitation. Should the loan not be completely funded by friends and relatives, the borrower can still decide if he wants to make the project available to the public. This has not happened to consumer loans yet and I don’t know how many there have been in total. I question it generally if this works with these kind of loans. If I am in need of money, then I would ask my best friends directly, and would not go via a marketplace (although the advantage would be that there is a contract in place). I can very well be wrong about that and there is demand for such a service. Would not be the first time to be wrong for me. 2011 I did not believe that tablets had any chance in the market… look at the development now.

I still think the idea of flender is great, but I see it applicable more in the area of sme loans. If a friend would ask me for a loan for his business, then I would like to have it done through a platform, where the rules are clear and binding. For my friend it would have the advantage that he could ask several people for funds and can share his presentation with them. In most cases the friend funding would not be enough, and such projects could still be added to the public marketplace. In my opinion this is a huge advantage for us investors, a psychologial one. The borrower has already got funds from his personal network and should therefor be more motivated to pay in time. Who wants to deal with angry friends who did not get their money? If I invest in such a project I strongly believe the repayment moral is higher, I see that as additional, but of course intangible, security. As the borrower pays a monthly installment, none of the lenders can be preferred. I know, this is all theory, but I believe this model can function. Speaking for myself I can say that I would have a much better feeling for a project where friends of the borrower already have invested. Of course this is no guarantee, but I see it supportive. You can’t see if any friends are involved, but you can always ask 😉

Until now I have funded 4 projects

Four projects received funding from me, but only one has so far a duration of more then one month. This project has already made 2 payments on time. The other three projects are due to redeem in September. Then I will see if they pay on time.

What else is important?

At the moment the funding period is pretty long (and there is no interest for this period), this is due to the lack of investors (help flender grow and register now). I hope this will get better during the next weeks. At the moment there is only one project open for funding, but you can always ask the support if there are more projects (in private mode). You’ll get then a link to an additional project in which you can invest. One criteria with the credit check is by the way that the borrower must prove that they can pay the first three installements from their liquidity. This is nice, although it can change during the loan.

Wishlist to flender

I wish myself a secondary market 😉 This would assure me that I could pull the plug in a case of emergency when in need of the money. Before this would be realised I would be glad to get a better overview of my logged in area. A portfolio view would be nice. The funding period of the loans should become shorter, or if not, I would like to see some sort of cashback for the waiting period. The single most important factor to me is though that the payments will be on time and that the credit check is performed rigorously (if this is not done properly the platform is soon out of business, but the guys in charge know that. Linked Finance already proved that it is possible to operate in the Irish market with low default rates. Irish borrowers are amongst the best payers, what led to that Ireland was pretty quick through with the European debt crisis, although it was one of the PIIGS countries. Last but not least I wish that the support stays as quick as it is. When founders are so keen to get the job done, this sends a strong signal towards the investor’s community. Please keep up the great work. Click me to register with Flender.

I will report back in approximately one month to give you an update if all investments go as planned. If there are questions, please post them.

News from the blog and new bonus schemes

In case you have missed it: my blog is now superfast 😉 This wasn’t the case some weeks ago. Sometimes my blog was not reachable at all. A change of hoster plus some minor tweaks helped very much. 

At the time being I am investing in more then 30 platforms and have published more then 120 posts (German and English summed up). Because of that it might get a little confusing here. To give you a better overview I have added some overview pages. You can find here an alphabetical ordered list of all my post and here an overview of all my published pages. Ich hope these tweaks will benefit you, my dear readers. For futher improvements I am always open, just let me know. Enough now with my blog I would like to introduce 2 new bonus or cashback schemes to you.

Flender offers 10% cashback for a limited time only

Correct, you get 10% of your invested capital as a bonus, if the following requirements are met:

1) Register until June 30 of this year and make your first investments prior or latest to that date.

2) Invest more then EUR 1’000.- or GBP 1’000.- (depending on your base currency) and that….

3) … during 60 days after registration…..

4) …… use this cashback link

You can spread your investments in as many loans as you like, but just between 60 days after your registration. So you get 100 bonus for every thousand invested. Sounds tempting, doesn’t it? Just a tipp: there is no possibility to wire money at the moment, you need to pay by credit or debit card once you chose your loan and give your bank account details, where you would like to receive your repayments. This looks as follows:

Lendy (formerly Saving Stream) pays 50 pounds to new investors

If you register through this link and invest at least 1k of GBP for minimum three months you automatically get fifty pounds. This offer is limited to uk residents at the moments, I will try to convince them to open it to all investors.


Flender: a new platform & interview with CEO Kris Koik

„Disclaimer: Flender searched on seedrs for funding. I bought equity in the value of GBP 19.10, so I am a minority shareholder ;). I will publish my own opionion at any time. I just wanted to inform you about this circumstance due to full transparency. “

1) 1) Who came up with the idea of creating a p2p platform? Who are the owners?

I came up with idea and we further developed this with my cofounders Oli Cavanagh and Jeremy Davies. Owners are the founders, angel investor and Seedrs round investors.

2) What are your Major achievements to date?

  • Building out an amazing team and product
  • Having well known investors and fintech entrepreneurs to invest and join our board
  • FCA full authorisation
  • Very successful soft launch in Ireland

3)I can see only business loans on flender at the moment, but it is mentionned that personal loans should be available as well. So can you please laborate a Little bit about the personal loans?

Kris Koik, Flender Founder and CEO

All borrowers have a choice to run campaigns privately and share it only with people who they are comfortable in sharing their campaign with. All of the consumer borrowers have so far selected to run their campaign in private mode and most SME campaigns as well. Therefore on the marketplace you can see campaigns that have selected to be on marketplace only. Comment p2phero: There are 5 business loans listed at the moment, with yields around 10 percent. There seems to be a shortage of investors so far.

4) How is flender different from the other p2p platforms, especially from Linked Finance, the other irish platform?

  • We are the only P2P platform in Ireland that caters for both consumers and SME’s
  • Both borrowers and lenders can select the rate they are willing to borrow and lend at – Flender is a true marketplace platform and not a risk based lender
  • There are no fees for lenders
  • We allow for cross border and multiple currency borrowing/lending
  •  We have FCA full p2p licence

5) What are your next steps, which goals do you want to achieve in the near future?
Next steps are to launch in the UK and North America. Innovative ISA and creating secondary market will be next goals for our business model. Our goal is to bring added comfort and better returns for lenders as no business is more likely to repay the money that includes mom, dad and loyal customers participating in the loan along side the crowd; for borrowers our goal is to provide access to finance much quicker and cheaper compared to traditional lenders.

6) Do you know when we will see your next funding round on seedrs?

We are likely do a convertible note round on Seedrs later this year ahead of our series A

7) Would you like to share some more Information with my Readers? Feel free!

We are open for international investors who would like to participate and take advantage of our attractive loans. For investors who want to invest more then 100k we offer a completely managed investment solution. register here and contact someone of our staff for more details. By the way, the minimum investment is 50 Euro.