Crowdestor Review (December 2019)

At the beginning of July 2019, I made my first deposit to Crowdestor. It was my first platform with high returns, that I added to my portfolio.

I’ve since then deposited more funds into the platforms and have had no issues. Even though they don’t have a buyback guarantee, they do have a buyback fund. More on that later.

Crowdestor Review 2019

Mikkel Danielsen

Platform
Beginner-friendly
Returns
Investment protection

Summary

Crowdestor is a high return peer-to-business lending platform. They don’t offer a buyback guarantee, but a buyback fund. It is not quite the same, but it adds a bit of security for the investor.

The platform is not the most beginner-friendly. However, they keep improving. For instance, they just revamped the dashboard and an auto-investor function is coming soon to the platform.

Crowdestor adds new loans weekly and often with high returns. They state that the average interest rate is 15.52%.

3.8

What is Crowdestor?

Crowdestor is a peer-to-business lending platform. Approved companies can then get funding to help grow their business.

I first learned about Crowdestor in June of 2019 were I shortly open my free account and deposited funds.

Nearly 8000 investors have signed up and raised 19.8 mln. euros.

The platforms keep improving. In my opinion, it is not the most beginner-friendly platform, but after you’ve invested in a few loans, you will know how to work the platform.

What returns can I expect?

Crowdestor states that the average interest is 15.52%. My average interest is 16.77%. Sometimes there are some loans between 11-13% and that is probably what drags the average a bit down. I have personally chosen not to invest in these. I only once did a loan under 14% due to some cash I had in my account.

Another awesome thing about this platform is that interest is calculated from the day you make your investment. And even if the loan doesn’t get funded you will still get paid interest for the time you’re invested in the project – awesome!

How to get started on Crowdestor?

Getting started on Crowdestor is smooth.

First, you need to open a free account on their website. This doesn’t take more than 5-10 minutes. When you’ve signed up you will need to verify your identity by uploading identity documents – just like every other platform.

Once your account is created and verified, it is time to deposit funds.

Depositing funds are very easy. You simply just input what amount you will be depositing and they will send you an email with their bank information. I’ve added all of my funds through Revolut.

When your funds are deposited, you can start investing. The minimum is 50 EUR per loan.

Auto-invest

Crowdestor keeps improving their platform. Crowdestor doesn’t yet have an auto-invest function, but it is coming soon.

Buyback fund

Crowdestor doesn’t have a buyback guarantee. However, their loan returns are much higher than for instance Grupeer – where they do have a buyback guarantee.

Crowdestor has launched a program called buyback fund.

Each borrower on the platform is contributing to the fund with about 1-2% of the loan value. If a loan should default investors will receive something from the fund. You can read more about it here.

My results with Crowdestor

Crowdestor average return.
My overview, when writing this

I will admit when I first heard about Crowdestor I was a bit skeptic. How were they able to offer loans with high-interest rates and still not have any defaulted loans?

I’m still not sure, but Crowdestor is doing really well in my portfolio. With an average return of 16.77%, it is not bad at all. I haven’t had any defaulted loans yet and I don’t actually think that there have been any defaulted loans on the platform yet. However, I might be wrong about that.

You can follow my Crowdestor results on this page, which is updated often.

Crowdestor is busy, therefore they keep adding new loans. That is the reason I opened an account on Crowdestor before Envestio, who seems to be running low on loans at the moment.

Should you invest on Crowdestor?

If you don’t mind the added risk, but in return higher interest rates, then Crowdestor is absolutely worth trying.

They add new loans to the platform often and even though they don’t have a buyback guarantee they have some sort of security for the investor with their buyback fund.

Alternatives to Crowdestor

High return alternatives to Crowdestor:

Alternatives with lower returns, but buyback guarantee.

Do you have Crowdestor in your portfolio or do you consider adding it to your portfolio?

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