Loan Platform Roundup: July 2019
Exceptional returns, and a few critiques
(Bonus signup links at the bottom)
Distribution and profits
Interest rates and available loan volume remain very (too?) high. This month’s extraordinary returns are linked to Kredo and Monego‘s generous cashback campaign. I mostly invested in their short-term loans, so as not to keep high stakes in these small companies.
Sadly, EBV bought back most of their loans this month, and IuteCredit will soon follow suit when their bond is settled. Hopefully they’ll need our money again in a few months, like Mogo eventually did.
Also sadly: The new Latvian interest rate cap did not have much effect on borrower APR for Latvian loans on Mintos. Too bad, I really want to see more reasonable rates. My ratio of delayed loans has gone up by a few percent this month, and I don’t like it.
Since their major leap in loan volume and number of originators at the beginning of this year, Grupeer hasn’t advanced as much as I had hoped. Improvements to interface and transparency are very slow in coming. Some real estate projects have been stuck there for months waiting for refinancing, and the market is flooded with loans by the same few originators (mostly “sub-originators” funded by Finsputnik).
On the plus side, loans continue to perform flawlessly. I just feel like Grupeer has more potential than it lets on.
There has been a steady flow of new projects throughout the month.
Baltic Forrest, a major repeat-borrower, has run into a cash-flow problem, causing an expected delay of a few weeks to several loans. The cause for this hiccup is well-explained, the borrower seems to be on top of things, and I really appreciate the fact that situation was relayed to investors immediately.
I have one more delayed payment, HM Seafood, so far only by 1 day. The rest of my loans are performing as planned and providing regular project updates. I just love the serious way in which everything is handled on this platform.
The number of project originators has gone up to 13, loan volume is growing rapidly, and loans are funded at a decent rate. I’ve increased my investment this month, targeting mostly “skin in the game” projects. Very pleased to have the option to diversify my real estate portfolio from development projects to “buy-to-let” loans, and also diversify out of the Baltics and into Spain, Italy, Germany and even the US(!).
The platform itself still misses some features, but looking at its rate of progress, I’m confident they’ll be added soon.
It’s very cool to see EVO taking off. I just hope that the quality and depth of their assessments won’t go down as the volume increases, and that their project originators (some of which are young, with a short track record) perform well.
Over the past 2 months, Envestio has only listed a single project (split into two tiers). “Quality over quantity” is good, but there’s a limit to how long investors can keep money on standby. Envestio still talks about a deal that’s supposed to bring an influx of new loans, but I’m starting to feel like the platform relies too heavily on this one cooperation.
Old loans are still being repaid like clockwork, so their core product is good, but Envestio really needs to up its game in the next few months to stay relevant.
As usual: Tons of late loans, no defaults. I’m withdrawing some of the investment, and reinvesting some. My XIRR is sloooowly going up, but remains low at 9.98%.
No improvement in transparency. I’ll withdraw a significant portion of the funds in August.
If you decide to join one of the following platforms, I would really appreciate it if you use the following links. Most of them will grant you a bonus, and also reward me:
- Grupeer (sadly no bonus is offered to invitees, only to the inviting person)
This month I earned record-breaking income from affiliate commissions: €262 from Mintos, €90 from EVOEstate, around €5 from Envestio and Grupeer each, and €3 from Lenndy. Thank you for using my links! These sums are included in the “deposits” column of the income chart, so as not to be calculated as profits.
Bottom line: Excellent month on all financial fronts. Now back to writing the first TORCH evaluation, which (of course) is taking longer than expected.