Colminey

Get email notifications on new posts:

Loading
Mini-Reviews: Grupeer, Lenndy, Fast Invest
21/02/2019
Mini-Reviews: Grupeer, Lenndy, Fast Invest
My first impressions of a few more loan financing platforms

Updated 30.4.19

When reviewing a loan platform I usually try to provide a very comprehensive report, including all the facts, stats, and my personal experience.

However, there are several platforms which I feel unable to review in detail, either because I haven’t experienced them long enough, or because they lack some critical information or functionality.

Still, I feel that these three platforms are worth mention, and I’ve decided to provide a temporary overview of them.

If you decide to join any of the platforms mentioned, you are welcome to use my sign up links (which grant a bonus for Lenndy and Grupeer).


Grupeer

Established in February 2017, Grupeer is no longer a new platform, but it is still constantly evolving. They now have a total of 20 loan originators (not all active) from different countries, offering an interesting combination of business loans and development projects. They are also working on adding a rental crowdfunding system.

While the platform itself requires additional development, my personal experience with it (based on 3.5 months of use) has been excellent. There are always available loans, and they are being repaid like clockwork.

Positives:

  • Decent, sustainable returns: 10-13%. There are also cashback campaigns.
  • As far as I’m aware, Grupeer is the only platform where all development projects come with full buyback guarantee in case of default.
  • Two types of loans and several active loan originators present decent opportunity for diversification.
  • Excellent loan performance.

Negatives / Points for Improvement:

  • The website is seriously lacking in information about loan originators, loan performance, and even Grupeer itself . I don’t feel like they’re trying to hide anything, they just haven’t created pages to display this information yet. I know some of it is in development, but don’t understand why it’s taking so long.
  • Rather than refinancing specific loans, some of the loan originators on Grupeer seek general funding for their operations. This causes two issues. First, the company guaranteeing buyback in case of default is the same company taking out the loan… Second, since we can’t see the performance of the specific loans issued by these lending companies, we can’t evaluate their stability.
  • Duplicate listings of the same few loans make it difficult to understand which loans you’ve already invested in. Again, “solution in development”.
  • Secondary market still under construction, for many months now.

Lenndy

Established in September 2016 by a young and passionate team, Lenndy still feels like an entrepreneurial venture. 4 loan originators offer a limited volume of mortgage, personal, business and car loans, as well as invoice financing.

I really wanted to love Lenndy. Their business approach and transparency are great, their published loan performance is much better than Mintos, and their loans feel more real. Sadly, I’ve discovered that loans on Lenndy tend to go late more often than not. These loans rarely default, so I’m not too worried about losses for the loan originators, but those late loans may affect your returns.

Positives:

  • Most loans are backed by collateral, personal guarantee, buyback guarantee, or a combination of the above.
  • High standards of transparency, with loan performance statistics, information about loan originators, and even photos of the collateral (when it comes to car loans).

Negatives / Points for Improvement:

  • All 4 originators are small and aren’t showing quick growth.
  • Sadly, the same can be said for Lenndy itself, especially when compared to the giant Mintos, which offers a similar concept, but is hugely more successful. I don’t really see what Lenndy is doing to evolve and make itself stand out.
  • Platform is buggy and lacks some basic functionality (like switching from value to percentages in the loan statistics page. How much is € 3,032,962 out of € 3,306,148 ?).
  • High number of late loans, contrary to published statistics.

Fast Invest

Fast Invest was once shrouded in mystery. Fellow blogger Jørgen Wolf of FinanciallyFree.eu has helped clear away much of the fog through extensive research, interviews and a face-to-face meeting with the team. His commentators have expanded his findings even further.

In short, Fast Invest is the reincarnation of a troubled lending business, whose partial owners and board members were relatives of the current CEO. The current platform feels like a genuine attempt to take the business in a new and better direction.

But there is no way to tell if the business is actually run cleanly now, as they offer very low transparency with regards to the names and financials of their loan originators, as well as loan performance (late and default ratio). I also don’t like the fact that they refuse to accept UK, Latvian and Lithuanian investors.

Fast Invest’s main attraction is the very dependable performance: late loans are almost immediately bought back. They also used to offer higher returns than other platforms, but those have declined. With more transparent platforms offering comparable returns, there is little incentive to use Fast Invest.

Positives:

  • Stable returns, up to 13% for long-term loans.
  • Attractive conditions for investors: buyback within 3 days of default, by the platform itself rather than its loan originators.
  • Working with 8 originators (allegedly).

Negatives / Points for Improvement:

  • Suspicious past.
  • Very little transparency about loan originators and loan status.

That’s it. I hope that these partial reviews offered some insight, but definitely hope to replace them with more comprehensive reports when I have more information and experience with these platforms – which depends largely on them.

This post is not meant as investment counselling! I’m just a fellow investor sharing his personal experience and thoughts.

Facebook Comments:

Blog Comments (19):

Leave a Reply

Your email address will not be published.