Crowdlending comparison

There is many many crowdlending platforms, how do they compare? Let us take a look.

PlatformAverage return*Min investmentLoan termLaunch yearTotal investmentsSignup bonusInvest
mintos11,79%10€0-72+2015 4 538 685 652 € 0.5% cashback the first 90 daysInvest
grupeer13.18%10€0-722017 66 166 390 €Sometimes 1% cashback on some loansInvest
Swaper12-14%10€Short2016134 000 000 €NoneInvest
Peerberry13,01%10€0-72+2017232 000 000 €NoneInvest
        

I l’ll keep updating this list over the next few weeks. If you have any suggestions feel free to contact me on mikkel@brainywealth.com!

How do you get started with Crowdlending?

With all the crowdlending platforms that exist, you should choose a few to start with, in my opinion. By doing so you are getting started with your portfolio. This way you will also minimize your risk by diversifying. Mintos is one of the best platforms for diversifying, because they offer over 60 loan originators.

This means that you won’t hurt if a loan originator has issues. But only if you diversify.

How to choose the right platform

By comparing crowdlending you get a lot of options, but which should you go with?

I can’t answer that for you, but here are some ideas that will help you find the platform for you.

Risk

What is your risk? In peer-to-peer lending, there are platforms that offer high returns like Crowdestor with up to 20%+. This is high and therefore you should expect a higher risk.

Therefore when I started out, I only looked for p2p platforms with a buyback guarantee, that would cover the loss completely.

Review

Start reviewing the crowdlending company to find out more about it. For instance, you might not want to start out with a new company in the sector. I looked for platforms, that had a large portion of investors, good reviews and large total investments.

Signup bonus

This shouldn’t be the decider, but it surely is a nice thing, if the platform offers a signup bonus. This way you will get a better return the first few months. Many platforms offer a signup bonus like Mintos where you get a 0,5% cashback in the first 90 days.

Due diligence

It is always a good idea to make sure that you know what you’re signing up for. There check the financial statements for the company to see how it is doing. This can be hard to read, but it is definitely worth trying.

Important step!

I learned this and now I’ll pass with an important lesson on to you. What you do with this information is up to you, but it is worth remembering.

Never invest more than you can afford to lose. Think of it this way, if you lost your investments tomorrow or next month, what would happen to you financially? Do you need the money for something, because then you shouldn’t invest it.