Compare crowdlending platforms (update Aug 2020)

Felt like it is the high time for another update of compare crowdlending platforms for Aug 2020 (latest was done in Feb 2020).

What has changed?

Scoring criteria for BuyBack and P2B guarantees’ max caps

As I wrote in the previous update, wanted to reduce the BuyBack guarantee score to maximum of 10 points instead of 15.

This is a hot topic currently, however, I have yet to hear about a platform to officially remove BuyBack term from their glossary. No investor likes to be promised a BuyBack by a loan originator and instead get 0 EUR from month to month. On other side, defaults of loan originators and loans in this market are unavoidable and is part of the game. Sooner we accept it, more nerves we save.

To align the max caps, I reduced the max cap for real estate and P2B risk weight to maximum of 10 points form 15.

Scoring criteria for Average interest rate

As I wrote in the previous update, wanted to reduce the yield return score to maximum of 10 points instead of 15.

The yields are not that different, thus should not count into weight as much as other factors. Changed from 15 to 10 points.

Crowdlending platform results

This is the table before the update (Feb 2020):

Platform Final score Average interest rate Invested volume Buyback guarantee Collateral, personal guarantees & other Auto-invest Personal user experience
Mintos 55 7 - 11.80% 20 - 4842 mil. EUR 15 - Yes - 5 8
Twino 36 6 - 10.73% 3 - 632 mil. EUR 15 - Yes - 5 7
Viventor 35 10 - 14.08% 0 - 120 mil. EUR 15 - Yes - 5 5
Crowdestate 32 13 - 17.26% 0 - 87 mil. EUR - 12 Yes - 5 2
Swaper 28 7 - 12% 1 - 125 mil. EUR 15 - Yes - 5
PeerBerry 28 7 - 11.51% 1 - 191 mil. EUR 15 - Yes - 5
EstateGuru 28 7 - 11.91% 1 - 180 mil. EUR - 15 Yes - 5
Robocash 27 7 - 12% 0 - 58 mil. EUR 15 - Yes - 5
ViaInvest 27 6 - 11% 1 - 182 mil. EUR 15 - Yes - 5
Reinvest24 27 10 - 14.60% 0 - 2 mil. EUR - 14 No - 0 3
FinBee 27 14 - 18.00% 0 - 19 mil. EUR - 8 Yes - 5
BulkEstate 27 10 - 14.87% 0 - 12 mil. EUR - 12 Yes - 5
DoFinance 25 5 - 10.03% 0 - 76 mil. EUR 15 - Yes - 5
Iuvo 24 4 - 9.20% 0 - 104 mil. EUR 15 - Yes - 5
Flender 24 5 - 10.00% 0 - 19 mil. EUR - 14 Yes - 5
Zltymelon 23 3 - 8.62% 0 - 14 mil. EUR 15 - Yes - 5
Profitus 20 6 - 10.57% 0 - 9 mil. EUR - 14 No - 0
Crowdestor 19 12 - 16.55% 0 - 27 mil. EUR 2 5 No - 0
Wisefund 19 14 - 18.12% 0 - 4 mil. EUR 0 5 No - 0
Bondora 18 5 - 10.00% 1 - 343 mil. EUR - 7 Yes - 5
October 17 0 - 5.77% 2 - 384 mil. EUR - 15 No - 0
Housers 16 4 - 9.21% 0 - 109 mil. EUR - 12 No - 0
Grupeer (why 0?) 0 9 - 13.17% 0 - 67 mil. EUR 15 - Yes - 5
Monethera (why 0?) 0 15 - 18.70% 0 - 5 mil. EUR 0 0 No - 0
Fast Invest (why 0?) 0 8 - 13% 0 - 51 mil. EUR 15 - Yes - 5 0
Envestio (fraud) 0 15 - 18.82% 0 - 35 mil. EUR - 0 Yes - 5 0
Kuetzal (fraud) 0 12 - 16.50% 0 - 8 mil. EUR 0 0 No - 0

This is the updated with score change column:

Platform Final score Change Average interest rate Invested volume Buyback guarantee Collateral, personal guarantees & other Auto-invest Personal user experience
Mintos 45 -10 5 - 12.35% 20 - 5497 mil. EUR 10 - Yes - 5 5
Twino 30 -6 4 - 10.72% 3 - 696 mil. EUR 10 - Yes - 5 8
EstateGuru 27 -1 5 - 11.75% 1 - 230 mil. EUR - 10 Yes - 5 6
Crowdestate 26 -6 9 - 16.71% 0 - 95 mil. EUR - 8 Yes - 5 4
Viventor 25 -10 7 - 14.17% 0 - 135 mil. EUR 10 - Yes - 5 3
Swaper 21 -7 5 - 12% 1 - 165 mil. EUR 10 - Yes - 5
ViaInvest 21 -6 5 - 12% 1 - 215 mil. EUR 10 - Yes - 5
PeerBerry 20 -8 4 - 10.10% 1 - 285 mil. EUR 10 - Yes - 5
Robocash 20 -7 5 - 12% 0 - 138 mil. EUR 10 - Yes - 5
Reinvest24 20 -7 7 - 14.60% 0 - 4 mil. EUR - 9 No - 0 4
BulkEstate 20 -7 7 - 14.50% 0 - 17 mil. EUR - 8 Yes - 5
Profitus 20 -7 4 - 9.99% 0 - 15 mil. EUR - 9 No - 0
DoFinance 18 -7 3 - 9.50% 0 - 88 mil. EUR 10 - Yes - 5
Iuvo 18 -6 3 - 9.20% 0 - 134 mil. EUR 10 - Yes - 5
Flender 18 -6 4 - 9.80% 0 - 23 mil. EUR - 9 Yes - 5
Zltymelon 18 -5 3 - 8.82% 0 - 17 mil. EUR 10 - Yes - 5
FinBee 15 -12 5 - 12.00% 0 - 21 mil. EUR - 5 Yes - 5
Bondora 15 -3 4 - 9.80% 1 - 378 mil. EUR - 5 Yes - 5
Crowdestor 14 -5 10 - 18.39% 0 - 40 mil. EUR - 4 No - 0
October 12 -5 0 - 5.03% 2 - 443 mil. EUR - 10 No - 0
Housers 11 -5 3 - 8.66% 0 - 116 mil. EUR - 8 No - 0
Wisefund 0 -14 10 - 18.12% 0 - 3 mil. EUR 0 0 No - 0
Grupeer 0 0 6 - 13.17% 0 - 47 mil. EUR 10 - Yes - 5
Monethera 0 0 10 - 18.70% 0 - 5 mil. EUR 0 0 No - 0
Fast Invest 0 0 6 - 13% 0 - 51 mil. EUR 10 - Yes - 5
Envestio 0 0 10 - 18.82% 0 - 35 mil. EUR - 0 Yes - 5
Kuetzal 0 0 9 - 16.50% 0 - 8 mil. EUR 0 0 No - 0

As before most of the negative difference is due to reducing yield max cap and buyback and P2B risk weight impact on scoring (i.e. becoming more critical towards them).

News on different P2P, P2B crowdlending and realestate crowdfunding platforms

Mintos

The COVID-19 period has been difficult for various loan originators in Mintos. It is hard to say if was the pandemic which was the cause or the fuel for the fire.

Of course you can follow Mintos business by reading their latest news blog, however, one strong indicator is the creation of funds in recovery page. There are many loan originators in troubled position. This makes my personal experience points to drop by 3 points.

There is a good article by ExploreP2P authors where they describe signals for loan originators surviving COVID-19.

The same authors also has the common go-to resource for many Mintos investors – Mintos loan originator scoring list.

One can of course to choose to do his/her own due diligence on different loan originators. Point is that there are over 700 comments on the page and people improve content by giving updates and questioning the scoring.

Twino

I decided to add 1 additional point for ability to withdraw money from the platform within 2 months. They are still in process to establish brokerage license in Latvia. Will introduce CurrencyLayer for currency exchange optimization. Also they promised to update the terms and services to have minimum withdrawal set to €10/£10 starting from 20.08.2020.

Viventor

According to the information below, I feel like there is a need to reduce my experience points by 2.

Viventor team has been active in publishing webminars and trying to keep informing the investors. After the platform was bought by the same owner as one of the Loan originators – Atlantis Financiers, the addressing loan originator issues leaves Atlantis Financiers in a beneficial situation. Hopefully giving extensions is eventually going to pay back for investors.

They launched a Loan originator portfolio overview page. One can quickly make a chart of what is the outstanding loan volume compared to the other loan originators.

64% of outstanding loans in Viventor are from Atlantis Financiers (25.08.2020.)

In mid-January 2020 I invested 300 EUR in Atlantis Financiers loans on and only 10 EUR has been paid back.

In Twino’s and PeerBerry’s cases – owners of the platform are closely affiliated with the loan originators. It seems to work for them. Let us see if Atlantis Financiers are able to get back on track.

Reinvest24

Added 1 point because got my first interest with principal repaid. Growing steadily but still no sign of secondary market though.

EastateGuru

Started investing with EstateGuru from beginning of Aug 2020. I chose them because of first rank collateral availability to most of the loans, low default rate and good reviews.

Hidden loan information

What I did not like is that they hide information about the loan as soon as it is fully funded.

So I contacted them.

Dear representative,

I am a recent investor at your platform. 
What is the reasoning behind hiding information from registered (KYCed) investors after the loan is fully funded?
In practice it is already available once project is open for investment and one can keep it for his/her own interest if needed.
Furthermore this information is available in secondary market.
Similar platforms e.g. Crowdestate do not have such restrictions. 
What is the procedure for the complaints and how could investors sound their opinion about changing the information availability?
Please note that conversation could be published in a public domain.

Kindly, 
Janis @ investingsmall.eu

And hereby the response:

Hello Janis,

thank you for contacting us and we do understand your point of view.

However, after the loans will be fully invested, EstateGuru policy is to close the available data of the project according to GDPR (General Data Protection Regulation) to protect our Borrowers. The data will remain available to all investors, who had made an investment into this specific loan.

According to Secondary Market, then to investors who are interested to buy a loan on the Secondary Market, we are obligated to share all available info.

Nevertheless, closing the information on the Primary Market for investors who were not involved is a small step to protect our borrowers. Also, when funding new loans, information on the status of past loans from the same borrower is available under “borrower” section.

If you have any questions, please let me know.

best regards,
Kadri Bauman

Rather an expected answer, however, there are other platforms e.g. Crowdestate which do not close this kind of information.

Minimum 250 EUR to unlock advanced filter functionality on auto-invest

My second dislike is about the auto-invest filter functionality. One has to use 250 EUR per auto-investment in order to use the feature.

EstateGuru's auto-invest feature when using minimum investment - 50 EUR.
EstateGuru’s auto-invest feature when using minimum investment – 50 EUR.

The advanced settings are enabled once you set 250 EUR as minimum per auto-investment.

Why EstateGuru's auto-invest advanced feature available only from 250 EUR?
EstateGuru’s auto-invest feature when using investment starting from 250 EUR.

Why starting from 250 EUR?

Why EstateGuru’s auto-invest advanced feature available only from 250 EUR?

Intention is good, however, as a small amount retail investor who wants to diversify, I do not want to end up with Secondary rank collateral (Security filter available only in the advanced settings).

So far could give the platform an optimistic 6 points.

Crowdestor

Crowdestor has undergone few changes and struggling with some paybacks.

Firstly, it is their new scoring model. Where they state (25.08.2020) that the highest probability of default for project they would dare to publish on the platform is estimated to be 16%.

Secondly, Crowdestor investors are one of the most active participants of the Telegram Crowdestor group among other crowdlending groups. One of the reasons is that they try to update each other with latest news on payments due to lack of centralized status page in Crowdestor. It has gone to stage where a table of loan statuses has been created independently from Crowdestor’s published resources.

Crowdestor’s investor initiative to keep overview of status for different loans

Crowdestate

Platform, as I previously mentioned, for more experienced investors who has time and ability to evaluate projects.

I have not added any more funds to Crowdestate, however, staidly receive delayed project principal, interest and late fees.

Because of that for my personal experience I added 2 points – giving 4 out of 10 now.

My transactions in Crowdestate (Feb 2020 - Aug 2020)
My transactions in Crowdestate (Feb 2020 – Aug 2020)

Wisefund

Have wrote to CEO, however, have not had a reply. Latest loans are cancelled. People are preparing for action via court. Had to downgrade its overall score to 0.

Conclusion after the compare of platforms

COVID-19 has affected borrowers and chain reaction ends up affecting us – investors.

Most of changes in the comparison come from dropping importance for BuyBack and interest rates. On top of that my personal experience changes over time and I would love to hear if you agree or disagree with my ratings.

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