Compare P2P lending (updated April 2019)

It has been some time since I updated ratings for the page Compare different P2P lending platforms. This post intends to summarize the differences between the comparisons, i.e., answer the question “what has changed during this time”.

This was the original comparison table:

Below you can see the new P2P compare table where fluctuation in final score is reflected in the Change column:

Summary
  • Mintos still dominates among platforms with its investment volume.
  • Envestio increased rating due to average interest rate increase.
  • Biggest drop is for Crowdestate due to drop in interest rate. Though still among the top 5.
  • Some platforms gained 1 due to growing invested volumes.
  • I believe my initial invested volume figure for FinBee was wrong, thus -1.

Due to lack of the data, I decided to remove some of the platforms from the comparison. Also the user experience update will follow some time later.

Usually statistics for platforms are publicly available. Personally, I think they should be public. In case statistics is not shown, I am cautious because it seems that some information is withheld. Examples of publicly available statistics can be found here: Mintos statistics, Envestio statistics, Fast Invest statistics.

Do you think any platform is missing or something looks odd in the list? Let me know, I am open to change it.

8 comments

  1. Hello, great work, I like Crowdestor a lot more than the list reflects, are you aware that they have introduced the Buyback Guarantee Fund? It’s limited but I think It’s a great improvement.
    Thank you for share this.

    1. Hi there!
      Thank you for kind words. Actually I am aware of this and great that you put it out here.
      https://crowdestor.com/buyback-fund/ covers 50 000 EUR. Usually more attractive rates are for those projects which have higher needed volume.
      Let us say an average project volume would be around 100 000 EUR. Currently, this means we would get 50% of our money back if something goes off. I agree it is better than nothing. I think I will make an exception and credit them 5 points if they pull off 100 000 EUR buyback fund by the end of 2019.
      As it is for now, we have not seen this in action yet. Same goes for Envestio, however, they have 95% secured loans and I have yet to see a project without collateral.

      Another drawback of this type of fund is that in case one project’s failure fund should go 0. What if the second fails? When would fund get reestablished?

      1. Great points Janis and well explained, I like that the Crowdestor fund is growing as they take a % from each project and is already more than 60k. Also, I think, like in Envestio, they count with the collateral so the permanent lost isn’t going to be the 100% of the project.
        I’m thinking that the quality of the buyback guarantee is a more complex aspect that how it’s treated often by the community. For example, the lending webs that say they cover all, how solvent is that? we often don’t know really in many cases.
        I like your last questions for Crowdestor very much, maybe they can answer that.
        A pleasure to comment with you.

        1. Thank you, I will add to my to do list to post the questions to Crowdestor.
          Totally agree about solvency. For P2P loans platforms like Mintos, buyback works quite well for now. For project based platforms (P2B) like mentioned Crowdestor, buyback territory is quite unknown.
          In real estate P2P sector for example Crowdestate there has already been some issues with borrowers not being able to pay. This resulted into proceedings in court. In best cases it takes only some months but usually over a year.
          I think it could be similar situation for project based platforms. Not all will get recovered, but hopefully most of the sums.
          Thanks again for your valid comments.

  2. Good morning Janis I hope you are well?

    Love reading your about your journey and advise you share so thank you very much for time and effort you put into this!

    I will not bore you for too long but I would like to share my thoughts on some of the site’s you are commenting on.

    Last year Envestio projects were being advertised with % in excess of 20% this year they have been at a much lower rate usually around 16/17%. I am not complaining but have noted this as my old projects finish and I reinvest in the new ones.
    Grupeer projects last year were being advertised at around the 15% mark and now we are seeing 13% as the higher % point. Again not a complaint but an observation.
    Crowdestor has got my full attention this year with good projects at a good % return, I do take note of the risk and apportion my capital accordingly.

    I am putting this out there as nobody really seems to comment the % drop from last year and their income falling and to me it seems obvious?

    Keep up the good work.

    Michael

    1. Hi Michael, greatly appreciate your comment and thanks for kind words!

      I fully agree with your comments here. I have also observed a similar trend in interest yield drop for many of these platforms. Usually it takes a year or so to get to the “actual” rates you can expect.
      As for Envestio they openly mentioned in one of their news letters that they will make better deals for their stable borrowers who are interested in continuing their credit line. This is visible in projects which have had multiple tiers, e.g., 21% to 17.25% (https://envestio.com/en/projects/fruits-wholesale-factoring-7/, https://envestio.com/en/projects/fruits-wholesale-factoring-11/). I think it is great that you put it out loud here, because it is something I did not mention anywhere.

      When it comes to rates in the comparison table I take the official averages which are mentioned in platforms’ web sites. Because there is some delay of “actual” rates emerging, usually official percentage is stated by 1-3% higher.
      So if you are reading this, please note what Michael has mentioned above. Actual rates you could expect are around 1-3% lower than what are mentioned in the comparison table.

      Thanks again, Michael and have a good one to come.

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