Why Mintos is one of the best p2p marketplaces

Ok, the subject is not that accurate as Mintos is not a real p2p marketplace in the classic sense, as there already funded loans are securitized and sold to investors. I was a little upset with Mintos beginning this year aus the rules often changed (interest rates up/down, foreign curriencies etc).It is not that this situation would not persist to today, but it has its advantages.

Mintos offers the broadest loan supply

As other platforms like Viainvest, Swaper and Robocash serve (mostly) as financing platforms for their respective loan originators, Mintos is some steps ahead.. At Mintos there are several unrelated loan originators on bord which use the platform as funding source. This opens a lot of possibilities for investors to invest broadly. It is clear that at some point problems occur with a loan originator, as the eurocent case shows us. As I wrote before, I believe that this case is good for us (except for the investors who lose money though) and strengthens Mintos’ business model and helps the platform to further develop. It would be a misbelief that this is the only time a loan originator struggles. This is valid for all platforms, not only Mintos. So do not back everything on the wrong horse, diversify!

Mintos related loan originators (Mogo, Lendo etc)

Here you find an overview of Mintos Originators, for further information, click on their logo. Even though Mogo is not considered as a related party according to IAS 24 (which doesn’t mean it isn’t related, might be different under other accounting standards), I still think it is possible that it is somehow related to Mintos. Mintos and Mogo share the same physical adress with their headquarters for example. Lendo ist the Georgian subsidiary of Banknote, the Latvian payday loan originator (related to Mintos). Even if such structures have been critisized before, this doesn’t deter me. Free market economy has a lot of examples of related enterprises. The only disadvantage I see is that if one party has control over the other party a domino effect could take place in case of problems with one party (accounting tricks etc). This is just hypothetically thinking. If we hit a recession, then the whole economy is involved anyway and one firm pulls down the other (ok, in the case of related firms, this could of course be more drastic and take place quicker, but the principle is the same). From this point of view I have no problem with Mintos’ structure. I always believe that the entrepreneurs want to make profit and not to be involved in “criminal activities”. Of course a can’t exclude such motivation completely (but it should be clear to any investor that such high yields come with high risks). At least Mintos is operational for more than 1000 days, so I guess the business model is succesful. I do hope that Mintos has a deep insight knowledge about their related originators and tries to avoid a default there as this would hit the company double. ?

There are nice yields available at the moment

Last week I invested in Lendo payday loans which yielded at 13.5% (Euro not Lari of course) and have a duration of 24 to 36 months which seems rather unusual. I can only remeber to have seen durations of up to 12 months before. I don’t care about the longer duration as I expect most loans not to reach maturity anyway. The buyback comes in play much earlier as down the road most loans will redeem early, amend the contract or just don’t pay up. In this case they are bought back prematurely. This leads to much shorter duration of these loans then at the point of issuance. I estimate that more then 90% of these loans won’t reach the set maturity. I cannot prove this number, it is only a estimate. How do I get to this number? When I check my buyback quotas of the shorter loans I see a buyback rate of about 50%, given the longer duration, I guesstimate that the buyback figure will be significantly higher.

Bargaining is getting tougher on the secondary market

Someday in the past I had nearly reached 20% yield (NAR not XIRR) with Mintos, due to nice transactions on the secondary market. Right now I have fallen back which comes from 2 reasons. Firstly I was not able to sell everything like I wanted and used to and secondly there is a lot more competition on the market. In the beginning I was able to manually grab some snaps, but that got a lot harder as since some weeks some IT guys created their bots to do the heavy lifting. Sadly I am not able to write a bot myself, so I have to rely on some luck. Consequently this means that my yield will be somewhere around 14 and 15 percent, which is still a great return. If you would like to start with Mintos, use this link to register and get 1% cashback on your average investments during the first 3 months.

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Brickowner with the next equity raise and some platform news

Some months ago I introduced Brickowner to you through an interview with CEO Fred Bristol. At that point in time Brickowner was raising money on seedrs with an equity sale. Now the platform made some progress but needs another cash injection to develop further (I am myself a tiny minority shareholder), which presents an opportunity to get on board as shareholder as well. At the moment the funding is about 80 percent complete. If you decide to invest in some equity you need to keep in mind that this is a longterm investment with the possibility of a total loss. There is a lot of risk associated with start-up investment.

Ok, what does Brickowner actually do?

Different to other platforms investors get the chance to invest alongside large and institutional investors with a minimal investment of GBP 100. Normally such projects are reserved for the big hitters and the entry investment is mostly 25k at least. This is a whole new opportunity. Brickowner charges 3 percent up front plus an annual fee of 0.75 percent. This sounds like a lot, but given the several year term of these projects the initial fee can be split and assigned yearly which means that with a 4 year term the actual yearly management fee is about 1.5 percent. It is normal that such projects have some entry fees.

So far 4 projects have been funded and a fifth is coming soon

Not that much, huh? I agree, but Fred released a statement on that point on seedrs which I find very interesting and encouraging. He stated that they only want projects which match their criteria (quality etc) and that not every asset manager is compatible with their set of rules. They are setting up processes to scale the business in the future which should be very cost effective for investors. He reiterated that he and his team will favor fewer but great projects then a lot of them meeting not their standards. Interesting times lay ahead of us. The coming project is a bit different then the previous projects.

coming project

With this project you lend funds to a loan portfolio which helps real estate developers to finance their projects. The projects are secured with mostly first and second mortgages with maximum ltv’s of 67.5 percent. There will be an annual distribution of interest which amounts to 7.5 percent per annum (two year term, so 2 x 7.5 = 15% total yield expected). This project is therefor more like a bond, as we do not profit from an increase in price of the real estate. The projects are supervised by an experienced developer who will at least invest 10 percent alongside Brickowner investors in every project. There is a sign up bonus for new investors: You get GBP 50 if you sign up through this link and invest at least GBP 1k (I get a small provision on that, but it is of course free to you). Given the longer funding period, Brickowner is offering 3% cashback (p.a) on invested funds until the project is fully funded.

Conclusion

For me Brickowner is operating in a niche and seems to be a good alternative for retail investors to get a foot into institutional projects. What is important to me is that you make your own picture before you invest. In this special case this is more important to me then ever as I am involved with the platform (although only as a tiny shareholder).

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Marketlend – p2p from down under

Some months ago I accidentaly discovered this Australian p2p marketplace and I put AUD 100 in three different loans. The investment was just made out of curiosity, as it is not that easy to find a Non-european platform where I can invest in (crowdo is the other actually in my portfolio). At that point in time little investors were still welcome. Some weeks ago they changed that and Marketlend now focusses on sophisticated and institutional investors. You can still invest with them if you like, but you need to confirm that you are an expert investor or have a net worth of more than AUD 250k.

I guess this platform is less interesting to most of you so I relinquish to lay out detailed about the registering procedure. One thing though: Deposits can be made through credit card, transferwise or currencyfair. Withdrawals are sent via bank transfer and are accompanied with high fees for overseas transactions. I therefor wait for my transferwise borderless account to get a personalized AUD account, but this could take several months from now. I don’t really care as this investment is considered as a gamble and I have no problem waiting months or years to get the money back at reasonable fees.

What does Marketlend do?

Marketlend was established in 2014 by Leo Tyndall (CEO and Head of Tyndall Capital LTD) and connects (corporate) borrowers and investors since then. The minimal investment is AUD 100.- per loan, the interest rates go as high as 20% (gross). The marketplace takes out a fee of 23% of all interest paid (only on really paid interest of course, not on capital). So the net yield for a 20% gross yield would be 15.4% (0.20 * 0.77 or 20% * 77%). But this is the most risky case. Mostly the yields will be around 12% (net).

Who are the borrowers?

Until now there are only Australian corporate borrowers which are in need of funds. Most of the loan applications are filed by mining, real estate or lending companies, (plus clinics and bus services) so pretty standard borrowers of the Australian economy. The risk is measured by a risk score, where 100 equals the highest risk. I have invested in 3 different credit score loans and all have paid back on time. Detailled and nice stats of Marketlend’s loan portfolio are available here.

I am really impressed by the available data for investors. Further the borrowers are really checked deeply and periodically. This looks very good all in all.

Conclusion

The platform is rather something for p2p enthusiasts and interested investors (from my European point of view of course). If I would be living in Australia a lot of my funds would go to work on that platform 😉 As long as I don’t have a cheap way to get my money back, I will not add anymore funds.

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How to follow this blog (newsletter etc)

Today I’d like to act for myself, respectively for this blog. A lot of readers wish for a newsletter service. My problem: I really hate newsletter and personally I unsubscribe for nearly everyone I receive 😉 Why do I bother with that anyway? Because some users convinced me to do it.

There are a lot of short term cashbacks, increased interest rates and so on. I don’t want to post them regularly on my blog, as I want my blog to be a (quality) source of information, not a referral code page. One additional advantage for sign ups is that you get the newest posts delivered into your mailbox. This is already possible by registering for the RSS feed (see picture, you find that option on the right down corner).

This is only a test run which I will expand if there is really a demand. I promise not to send too many emails and protect your data.

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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.

Lendix p2p loans versus bond ETF (yield comparison)

Today I am trying to compare between ETF bond investments and an investment with Lendix. I do that to get an idea how p2p loans perform in comparison to high yield and corporate bonds. I’d hoped to get some clues if the ETF bond investments could be replaced by p2p loan investments. Beforehand, the comparison is not as fair as it should be as I had to guesstimate some datapoints, so a part of it is comapring apples and oranges. Following some factors which are not congruent and therefor make it hard to be compared. Nonetheless I am convinced the benchmark gives some insights.

What you should consider while reading this comparison

Lendix funded its first loan in March 2015, this means the loan portfolio started from scratch and could only been built over time, contrary to an ETF where you can invest once to hold. This increases the difficulty to match the yields, as I would need to time wheigh them, what I can’t given the data available. From a risk profil high yield bonds are the most comparable to Lendix loans, although they are not exactly the same segment. Most of the borrowers would not be able to emit a quoted bond. The regional distribution is different, as Lendix only offers French loans (I excluded Spanish and Italian loans from this comparison due to their youth which would dillute my results). The analysed ETF have a broader regional segmentation. France counts for about 15 and 20% of the ETF’s regional allocation. A sectoral comparison is hard due to the fact that the ETF provider allocate the sectors differently. In the ETF the banking sector accounts for about 1/5 of the total portfolio, whereas on the other side Banks are nearly not existant at Lendix. As the oldest Lendix loans only are running for 2.5 years I guess the default rate is a little to low at the moment. Further: Quoted bonds react on shifts of the yield curve. Is the curve shifting up the bond prices go down (interest goes up), as the yields adapt to the new interest rate environment. This results in an increase in yield to maturity. Contrary when the yield curve shifts down the bond prices soar and the yield to maturity gets smaller. This does not happen to Lendix loans as they are not quoted or tradeable at an exchange. This can be an advantage (decreasing interest rates) or a disadvantage in case of increasing rates. Only newly added loans are affected as they orient at the current interest rate level. Ok this is a little bit generalized, but it works like this more or less. Of course there are other parameters which influence the bond prices to a certain degree in yield shifts. There is , for example, the duration. Loans with longer durations tend to react more sensitive to shifts in the rates then shorter ones. Higher coupon bonds tend to be less sensitive. But now enough with the theoretical approach, I could write many blog posts about this only 😉

Und jetzt zum Vergleich…

According to Lendix’ stats the average yield is 6.44% (but I can’t copy this value one to one due to the reasons mentionned earlier). Firstly I have lessend the yield because of the defaults by number (3.07% of the loan number were in default), which brings me (ok, not 100% correct I know) to 6.44% x (100% – 3.07%) = 6.23% p.a yield after defaults.

Lendix compared to ETF, Sources: Bloomberg / own calculations

This per annum yield I have lessend in the first image with 2 percent for the first year and 1 percent for the second, after that I have used the 6.23 percent p.a yield. As I passed on calculating monthly yields the Lendix line is stepped with a yearly recalculation (=addition of the yield, yes, no multiplication here). I am aware that not everything is 100% correct, but as I said earlier…. We se now that only the high yield bond’s yields came close the Lendix loans. This is what I have expected.

In the following image I have put together the per annum yields (over a 2.5 year period) of the ETFs and Lendix. Logically the high yield bonds and Lendix are in front.

Comparison of p.a yields from ETFs and Lendix, Sources: Bloomberg / own calculations

Conclusion

Despite the different initial position I find that the comparison shows us somethings. We see that we would have been better of with Lendix loans then the ETFs (from a yield perspective). As the comparability is not really given I see p2p loans as addition to a multi asset portfolio and not as a replacement of standard bond products. The loans track record is too short and we have no liquidity option here which we have with the ETFs which can be sold nearly instantly. You should always watch out for liquidity if investing. What I will try further in a later article: compare the default probability of Lendix loans with high yield bonds.

ps: Register with this link and you will get 20 Euro cashback (= 10%) after you deposited at least 200 Euros.

Property investments with p2p (part 1)

With my last post I mentionned some strategies to counter a cash drag. I shed some light on minor platforms where you could put your money to work. Intentionally I excluded real estate investment platforms. Why?  Because these platforms work differently and we have a physical security in place and do not rely solely to the financial power of the platform or loan originator. Firstly I will take a look at Baltic (but not exclusively) platforms. In my next article I will cover the UK platforms.

In contrast to buyback platforms where an investor buys securitized loans, with property investments there is always a physical security in place (property, land etc). The LTV (loan to value ratio) shows us the ratio between mortgage and value of the security. Example: Property value 100k, mortgage value 60k equals and ltv of 60% (60/100).  Looks quite secure, doesn’t it? The problem here is that the property value is an estimation, which could be too favorable.  So we should treat the LTV’s  with caution. Even if the estimated value is in line with the actual market value we are not safe. There always needs to be a buyer in place willing to buy at that price right now. Maybe there is a buyer, but only in some months time. Just keep that in mind, real estate investments are not risk free, but they offer substance.

Let’s take a look now at the platforms:

Estateguru

With soon 200 projects funded (and lots of them already repaid) Estateguru (get 0.5% cashback on your first 3 months investments with that link) is in the club of the more established platforms in the property sector. We now know how the platform reacts to delayed payments. An interesting case is this one. The borrower was not able to pay on time so the property was transferred into an entity controlled by Estateguru. The

Estateguru Project

borrower has no time until end of October to buy back the property. If not, the property will be sold. If this will happen we are going to know how good the LTV estimation was. There are other loans which are overdue, but none of them was sold until today. Most of the loans are redeemed more or less on time, sometimes premature. If not, there are indemnity charges. It has happened that a loan was funded but the funds could not be transferred to the borrower as they failed to provided the needed documentation. In such cases Estateguru paid the interest for the funding period out of their own pocket. It happened twice to me. I like this attitude as they would not be required to do that. According to the stats there are no loans in default, which means the payment is missing for more then 45 days. This is not really true as abovementionned case shows. In the end I like Estateguru, where I invest now for nearly two years without any default. The number of available loans was a problem back in the days, but this has changed now, there are several loans coming every week, which helps me to invest. I try to get into a good mix of different project types. I prefer loans with a monthly (interest) installement. This for a simple reason: if there is a delay we find it out quicker. If I see nice projects which redeem at the end, I invest regardless. Estonian projects are preferred as well, but I don’t close my eyes from others. My goal is to have at least 50 percent of Estonian projects in my portfolio.

Bulkestate

Bulkestate started in Latvia but moved to Estonia as the regulation there is more supportive to crowdfunding platforms. Since then there were some projects with really nice returns. During the next few days two big projects should be added on the platform.  One is a bulkdeal where investors can buy a hotel complex in Burgas, Bulgaria. The other project is a multistage real estate development project in Riga.

Bulkestate Project

I have a positiv attitude towards the platform, even if they can’t provide a track record as only one project has redeemed to date. All projects are set to be redeemed at the end so far which makes an evaluation hard at the moment. Technically and optically the platform seems to be nice. There is no investors account at the moment so you can’t store your money there. You have to bid project by project and then pay your bid by bank transfer.

I already have spoken to the guys in charge and they seem to know what they are doing (from their RE experience). As there are not a lot of projects at the moment I suggest you create a  free account, so that you get informed when new projects were added on the marketplace.

Crowdestate

Live for an extended period of time is Crowdestate, although we do not hear and read a lot about the platform. An overview of the functionality is available here. For some weeks they offer now business loans secured with properties.

Most of the projects pay their first installement after 12 months or at maturity, so an assessment is quite difficult, although we have a little track record here. Nice is that as an investor you get a quarterly update about your projects with lots of information.

They make a professional impression on me and I think it can’t hurt if you check out the platform.

Housers

Some weeks ago I joined  Housers (get 50 Euro cashback when using this link and invest in a project) as an investor. I liked the idea of investing in a different region (although I was and remain sceptical to a certain extent). I already have invested in some different projects and got my first monthly installements (10% of that remain with housers as commission). Some projects are buy to sells, so a property gets bought, renovated and sold (hopefully) with profit. There is a duration of 12 months with such projects and the profit relies on the sale price. If the estimations are realistic remains to be seen, but I like the mix of buy to sells, buy to let and interest bearing projects.

At the moment there is an attractive looking project available: A hostel in Valencia which is in funding phase. A big project which needs about 2 Mio Euro. There the investor participates from the revenues (monthly) and the increase in property prices (once sold).

You can join housers as an equity holder as they are offering some equity on

Housers Hostel

Crowdcube at the moment. In my opinion the valuation is high, so I join (if I join) with the minimal invstment amount. Access to the private round is provided by the above link. I can’t show any figures as all details of the pitch need to remain private.

That’s it for now, with my next post I will look at UK property platforms, and there are lots them 😉 If you prefer buyback platforms, check  this out when you are cash dragged.

What should we do when there is a cash drag?

Emerging popularity and awareness of the p2p sector leads more investors to join. As a result, the demand is increasing and from time to time there are not enough loans available for all of us. What should we do in such a situation? Just relax, breathe and think before you move your funds across Europe. Only because some minor percentage of your funds remains uninvested for some days on your account it’s not the end of the world. First I will show you a simple calculation which should ease your fears, let’s assume you invest with Swaper and/or Robocash: Both platforms currently pay 14%, which means simplified even if 10 percent of your capital would remain on the account for the whole year, you would still yield 12.6 percent. When taking compound interest into account you will be over 13%. Keep in mind that a cash drag mostly is a temporary situation and not sustainable. In the case of robocash I am pretty confident, that the cash drag (which exists for some days) will dissapper once Russian loans will be added. To date it is not clear when this will be the case, but my guesstimation is that this will be imminent. Swaper as well is trying to increase the loan supply and the situation seems to get better from month to month, except for this September.

What if the cash drag remains for an extended period?

Of course then you should do something if the situation persists. There are (still) some lesser-known platforms where you can find interesting offers. I will shortly introduce some to you:

Lenndy with up to 15% and buyback

The loan volume at Lenndy is increasing from month to month and you get secured car loans from 12% (with a duration of 5 months) to 15% (duration of up to 5 years) and many in between for about 13 to 14%. Further there is invoice financing with short durations with yields of 12 to 13 percent (mostly without buyback) and you can invest in business loans with up to 13 percent. Check out if there is a buyback offered, they are marked with a shield sign.

Of course there are reasons why the platform is not as frequented as others: There is no auto invest feature at the moment. New loans are published by emails which is annoying as you get many emails daily. Further you need a paysera account for the time being, but in the next months SEPA should be introduced.

Grupeer offers short term loans with up to 15 percent and buyback

Some weeks ago Grupeer introduced a new product. Since then these type of loans were added several times each week on the platform.You need to get them manually as there is no autoinvest feature. But you should succeed as most of the time some loans are available. The loan volume will be increased on a weekly basis. Even if there are no 2 to 3 month loans with 15 percent yield there are some loans with a duration of up to 6 months and yields of 14 percent. Follow me to Grupeer.

DoFinance offers 14% with buyback and 1% Cashback for new investors

Read this article before you invest, as the functionality of DoFinance is a little bit special. If you decide to invest there, use this link to register to get 1% cashback on your deposits of the first 30 days. If you deposit 25k and more you will automatically get 14% yields, otherwise 12%. There are plenty of loans available.

Mintos offerst the biggest selection

At the moment there are not a lot of 30 day payday loans, but this changes quickly at Mintos. But you get to choose from the biggest variety of loan types. You should find something investible with durations below 2 years easily. If you take into account that a lot of loans are bought back early, the duration of your portfolio decreases automatically. Use this link to get 1 percent cashback on your investments of the first 3 months.

Bondora is not the right place to start with p2p

My relationship with Bondora is rather ambivalent (I exited a while ago but reregistered now just out of fun). On one hand Bondora is one of the oldest platforms in Europe and offers a variety of statistical data, which nearly no other platform can provide. On the other hand Bondora is an uncomparable marketing machine and connotes to all interested (and non interested) people that high yields can easily be achieved without problems…. everything is just so easy. It is true that even Investors who start today can reach positiv yields, but in my opinion only experienced ones in the p2p sector. Further one would need to be able to work with statistical data and program an API. I guess this is to complex for an average investor and p2p newbie.

What upsets me with Bondora

Firstly, Bondora is a marketing monster, which includes their sales staff. I do not know any other platform which acts so obtrusive towards their investors. Even at registering you are prompted to make your deposit instantly. The next day you get some emails telling you that you did not already deposit. This will be repeated daily and after some days you get called.

Yield distribution acc. Bondora
and are asked if there are any questions. In my opinion this is just an opener by which they try to get your funds. Secondly, they suggest that everything is going really smoothly, just turn on the Portfolio Manager and everything is good. Oh, the PM is activated by default, so if you make your deposit, your funds will be allocated in no time. At least I would like to have the final say when I start and not get a suprise. Thirdly, they present themselves in a far to good manner, at least in my opinion. If you check out the image of the yield distribution it gets clear very quickly, that there are lots of investors with negative yields or very low positive yields.

After some months have passed you get confronted with defaults and late payers. Then you will check out the secondary market at the latest, which is when you realise it is not that easy… You get access to a lot of data and you can analyse them and use your results to improve your investment strategy. This requires a deep understanding of the data and you will need to invest a lot of time. If you are able to do that, then Bondora might be good for you, but for beginners at least it is not. Further you should have some codeing skills to create investments through API. If you still want to give Bondora a try, use this link and get EUR 5 free deposited on your account.

Ok, then which is the right platform to start investing in p2p?

There is not “the only” platform to start with p2p, but you have to start somewhere 😉 I would recommend to start with Mintos to get a feeling for the p2p market. You can invest there with buyback (as Eurocent shows us this is not without risks) and implement some autoinvests. After some time you will see some delays, early paybacks and buybacks. Therefor in my opinion Mintos is one of the best platforms to begin with. Further new investors get (but only if you use this link to register) 1 percent cashback on your investments from the first 3 months. If you invest 1000 Euro, you get 10 Euro on top as a thank you. Mintos offers a variety of loans, from payday loans, car loans, real estate loans, invoice financeing, business loans and so on.

Possible in my opinion could be as well robocash and swaper for starters, but there you don’t have the variety of loan originators and loan types.