Warning: This is not an investment advice. We will never repeat it enough: Only invest the money you are willing to lose.
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Compte français: @statorcrime
Hello everyone,
Today, I'm going to tell you about my favorite investment, Crowdlending. I'll explain what Crowdlending is and how I've been investing in it for over 2 years.
Articles en français sur le Crowdlending :
- Crowdlending #1 - Soyez la banque des entreprises
- Crowdlending #2 – October, la plateforme n°1 en Europe
- Crowdlending #3 – La fiscalité
- Crowdlending #4 – October : Statistiques, gestion des risques et matrice
- P2PLending #2 - Mintos, 5.000.000.000€+ de prêts
- Crowdlending #22 - Robo.Cash, la plateforme de Crowdlending 100 % automatique
What is Crowdlending?
Crowdlending consists in lending money for a determined period of time in exchange of interests as a bank would do. The loans are generally made via a specialized platform. Their goal is to select viable projects or to put you in relation with borrowers, to define the loan rate and the duration of the projects.
There are different categories of Crowdlending. I will talk to you about the two categories in which I have invested, namely lending to companies and lending to individuals.
Why invest in crowdlending ?
- Because the loans generally go from 10€ to 2000€ per project. They are therefore accessible to all wallet.
- Because companies are part of a multitude of sectors (IT, real estate, finance, ...) and individuals borrow for various reasons (Launching a project, buying a car, ...). Thus, you can choose where your money goes.
- Because the interests are more interesting than the different savings accounts proposed by the banks. Indeed, the interests go from 4% for loans to companies to more than 12% for real estate or individuals.
Why NOT invest in crowdlending ?
- Because the borrower may not pay you back
- Because the lending platform may go bankrupt
- Because the money is not immediately available. Don't invest money that you need.
Why don't borrowers go directly to banks where rates are lower?
Because the bank does not want to lend them money or just part of the money for the project they want to do.
Because the steps can be long with a bank, while through crowdlending, the loan can be closed in a few hours to a few days.
The platforms of loans to companies
The platforms I use are all French but you can generally invest from abroad.
This is the #1 platform in Europe. Launched in 2014 as Lendix, it changed its name in October 2018. Loans are made by small and medium-sized businesses in France, Spain, Italy, the Netherlands and Germany.
With more than €580 million lent, more than €40 million in interest repaid and more than 1,400 loans financed, it is a leader in the field of business lending.
The average rate of return is 5.51% for a term of 47 months.
The rate of repayment defaults is 2.78% with a significant drop in 2019 to 0.61%, 0.26% in 2020 and, for now, 0% in 2020 compared to 6.43% in 2018.
You can invest in it from 20€ and up to 2000€ per project as an individual.
If you sign up via my affiliate link and add at least 500€ to your account, we will each receive an additional 20€: https://october.eu/r/alefevre
WiSeed offers you to lend to companies but also to invest in real estate or in the capital of unlisted companies (private equity).
The platform was launched in 2008 and therefore already has a very good experience in its field.
When you lend on WiSeed, you are charged a commission and the minimum amount to invest is 100€. This may make it less interesting for small portfolios to invest.
However, the default rate is minimal with 2 projects dating from 2015 and 2016 out of 494, or 0.28%.
Moreover, when you want to invest in a project, information about the company, such as the team, the development plan and the use of funds, and much more information is available.
WiSeed has financed 200 million euros of loans and paid almost 18 million in interest.
There are no affiliate links for this platform. Go here: https://www.wiseed.com/fr
The personal lending platforms
The personal lending platforms I use are located in Eastern Europe and are available in several languages including English.
Mintos is a Latvian platform launched in 2015.
You can invest as little as 1€ for loans ranging from a few days to several years. Rates of return range from 5% to 21%/year and the default rate is 0.1%.
The platform has already financed more than 6.6 billion euros and paid more than 150 million euros in interest.
There are several ways to invest on Mintos :
- The most classic one is to select the loans and the amount you want to invest.
- The second and simplest way allows you to let Mintos manage your funds from A to Z.
- Finally, the last one allows you to choose the criteria you want for your loans and then the funds will be allocated according to these criteria.
Since Mintos does not allow affiliations from people we don't know, here is the direct link: https://www.mintos.com/
Robo.Cash is a Croatian platform launched in February 2017. It is part of the Robocash group created in Russia in 2013.
The platform has financed 250 million euros in loans and paid out 3.2 million euros in interest.
The loan originators who offer the loans belong to the Robocash group.
You can invest as little as €1 and up to €15,000 per month.
The platform invests automatically. You cannot select the projects you want to invest in. However, you can still select the criteria you want for your loans. Once the criteria are defined. Your investments will be 100% passive.
The rates of return range from 10 to 14% and the duration of the loans from 1 to 720 days.
The platform offers a loyalty system that will increase the rate of return on your loans depending on the amount in your account:
- Bronze: between 5000€ and 9999€: +0.3
- Silver: between 10000€ and 14999€: +0,5
- Gold: between 15000€ and 24999€: +0.7
- Diamond: 25000€ or more: +1%.
You can sign up via my affiliate link to receive 1% of the amount you invested in the first 30 days with a minimum investment of €500: https://robo.cash/ref/aep9
My evolution in Crowdlending
After a lot of research to know how to invest my money, I discovered Crowdlending in early 2019.
On March 3rd 2019 I invested my first 100€ on October. I then invested regularly between 50€ and 100€ and diversified on WiSeed (December 2019) and WeShareBonds (April 2020).
The minimum amount to invest on these two platforms being too high for me, I only invested very little on them.
The only project I had on WeShareBonds ended in May 2021 and I withdrew my entire investment.
From May 2020, I decided to invest exactly 50€ per month in Crowdlending.
In July 2020, I discovered the personal loan more commonly known as Peer to Peer Lending (P2P lending) with Mintos.
My strategy is to invest via Mintos' Auto-invest by defining some criteria for my loans. Namely :
- 10€ per loan
- Loan originators with at least a 60/100 rating on ExplorerP2P
- Reinvestment of earnings
- Maximum loan duration of 12 months
- 10% minimum interest
- Buyback guarantee
In 2020, I received 60.36€ of gross interest, which is a net return of 49.98€.
In January 2021, I decided to reduce my monthly investment in the stock market and to go to 100€ in Crowdlending.
For a few weeks now, the amount of loans available and the rates have dropped on Mintos. So I decided to turn to Robo.Cash, to reduce to 9% the minimum rate on Mintos and to invest in the High-Yield strategy of Mintos to always take advantage of the compound interest.
I invested 200€ on Robo.Cash on June 2nd 2021. I have not received any interest yet.
As far as my strategy is concerned, I made it very simple:
- The maximum amount invested on the portfolio will be 600€ before I start on another platform
- The amount per loan is between 1€ and 10€.
- The annual interest rate is between 10% and 14%
- The duration of the loans is between 1 and 365 days
- I reinvest the capital and interest up to a maximum of 1000€ then I will invest the surplus on other platforms
- I agree to invest in the secondary market
- I invest in all the loan originators proposed.
Here are some statistics on my investments in Crowdlending:
My internal rate of return is 6.45 %
The total value of my portfolio is 2314,41€ of which 2178,42€ invested and 135,99 received interests
My return on investment is 6.10 %
I hope to receive at least 100€ of net interest for 2021.
I will write an article on the Crowdlending every month so that you can follow the evolution of my investments regularly.
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That's all for today. Thanks for reading and have a nice day