Bondora is one of the oldest peer-to-peer lending platforms, and I joined early on in my P2P lending journey, around 2016.

While this platform has been criticized by investors in the past, my portfolio has been chugging along quite well over the years, and my only complaint would be about the graphics and UI of the platform, which I find really ugly.

In this Bondora review, I’ll be sharing my results on this Estonian platform, since many of you have been asking me if you should invest in this platform and if so, how to do it.

You probably know this platform by the very distinctive cartoon characters they employ on the website. I find them a bit old-fashioned, but there’s no question that it gives Bondora a very distinctive and memorable branding.

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Launched in 2017, PeerBerry has been gaining quite a lot of popularity among peer-to-peer platforms recently. As with many crowdlending platforms, PeerBerry originated in the Baltics – specifically Riga, Latvia.

At the time of this review, the platform has an average annual investment return of 11.51%, a solid return for most platforms. With more than 18,000 investors and over €212 million in funded loans, PeerBerry is certainly making some waves in the peer-to-peer business.

Let’s delve deeper into how PeerBerry operates, its transparency, risks, and returns.

⚙️ How does PeerBerry work?

PeerBerry works in a similar way to Mintos, in that, it is a loan aggregator. The platform started out in 2017 with loans originated solely by Aventus Group – a group of digital loan originators with short-term, long-term, and leasing loans across Europe and Asia.

Ever since, PeerBerry has continuously expanded its loan originators network to include others such as Gofingo (another group of loan originators) and their subsidiaries.

In 2019, GofinGo Group saw an increase in issued loans (2.4 times more than 2018) and had a net interest income of €11.06 million. This translated into a total loan portfolio of €6.6 million at the end of 2019, with equity standing at €4.1 million. This is 3 times higher than all the liabilities to investors who invested in Gofingo Group loans through PeerBerry.

This increase in loan originators allows for a diverse portfolio. PeerBerry claims to offer a wide variety of loans – short, long, real estate, leasing, and business loans – although, the available investment opportunities at the time of this review were mostly short term, with most maturing at one month. This means that most of the loan originators are operating with payday-style loans.

The platform offers loans from:

• Lithuania
• Poland
• Belarus
• Czech Republic
• Kazakhstan
• the Republic of Moldova
• Russian, and
• Ukraine

It is important to note that all of PeerBerry’s loan originators offer a BuyBack guarantee, meaning that the loan originator is obligated to buy back the claim, should the payment be delayed by more than 60 days.

There are currently 12 loan originators in total, and they all publish their financial statement, the majority of which have been audited for extra peace of mind.

✍🏻 Registration

Now let’s take a look at the online interface.

The website is clean, straightforward, easy to use, and comes in three languages:

• English
• German
• Spanish

Registration should take you no longer than a couple of minutes, you just need to fill in a few details and you’re in. Although there is no tedious identification process upfront, the platform requires it eventually, when you decide to withdraw your funds.

You will be asked to scan and upload your identification document (passport or ID card) as part of the platform’s anti-money laundering and terrorism process. Once this is done, you will then have to make a transfer to the bank account from which the deposit was made. Withdrawals can only be done in Euro.

This is the first time I’ve ever come across this sort of set-up. All other P2P platforms require you to verify your identity at the get-go, thus ensuring that the funds used to power their investments are coming from lawful sources.

It is certainly odd that you are only required to verify your identity at the withdrawal stage. As an investor, I want to make sure that I will be able to transfer my funds without any identity issues at a later stage.

Upon contacting the platform, PeerBerry has announced that it is currently working on implementing new identification and KYC processes.

PeerBerry makes it possible for both private individuals and companies to open accounts. Keep in mind that any investor should be at least 18 years old, with a bank account registered in the European Union.

The next step is to transfer your funds, which can be as little as €10, to PeerBerry’s bank account in order to start investing.

The platform accepts transfers in Euro only using SEPA (Single Euro Payments Area) transfers. This provides further protection for European investors against currency swings.

Processing may take up to 2 working days. PeerBerry then sends you a confirmation e-mail stating that your deposited funds were added to your Investor Account and you are now able to start making investments.

👥 What can I invest in?

PeerBerry offers mostly short-term loans on the consumer marketplace. The platform presents you with an overview of each loan, including the loan originator, amount, interest rate, remaining principal and days remaining for investing in the loan.

Borrower details are also available. These include the borrower’s country, city, age, gender and number of loans taken.

Since most of the loans available mature in around 30 days, they are often considered to be Full Bullet loans. This means that the investor would receive the principal and interest at one go, through one payment, at the end of the investment period, as illustrated in the schedule in the screenshot below.

On the other hand, the platform’s long term loans are paid back every month through an Annuity Type Schedule, where the principal and interest are paid back periodically over the investment period. PeerBerry offers a breakdown of the returns for each investment available.

Auto Invest

The platform allows investors to make use of their Auto Invest feature which uses the returns in your account to automatically invest in active loans, based on your preferences.

You can activate, pause, or cancel this feature at any time. Simply set up your preferred criteria for investing and you are good to go.

The possible setting options are listed below:

• The total amount of funds you wish to reinvest using the Auto Invest strategy.
• The maximum amount of investment in one loan.
• The annual interest rate.
• The remaining loan term.
• The remaining principal amount.
• The minimum amount of funds you wish to retain in your account.
• The loan status (Current or late).
• The country of issue.
• The loan originator.
• BuyBack guarantee.

Interestingly, even though PeerBerry states that all its investments come with BuyBack guarantee, their Auto Invest asks whether you prefer a BuyBack guarantee or not. This seems to suggest that the platform has plans to include investments without BuyBack in the future.

Auto Invest is great for those of you who do not wish to spend time keeping up with all the available investment opportunities on the website, while still achieving a diverse portfolio.

🕵️ Transparency

The About page, shows a team of four, including Arunas Lekavicius, the platform’s CEO, who has been working in the financial industry since 2007.

The profiles are accompanied by working LinkedIn profiles, however, no further information is found on the platform’s website. It is strange that the rest of the team is not shown here, especially with respect to the CTO, Marketing Managers, and Lawyer.

On reaching out to the platform, PeerBerry has clarified that the team is made up of a total of 9 employees:

• Arūnas Lekavičius, CEO PeerBerry
• Viktar Kamiahin, CTO
• Inga Zubanovė, COO
• Rūta Zenkevičienė, Head of Customer Care
• Rita Simanavičiūtė, Head of Marketing and Communications
• Karolina Staugaitė, Digital Marketing Manager
• Rasa Paškevičiūtė, Customer Care Manager
• Milda Martišiutė, Customer Care Manager, and
• Tadas Bulota, Lawyer

The team was quick to answer any of my queries in detail and in record time, which reflects positively on the entire company. The website has an online chat function for any customer queries. Should you have a number of questions, you will most likely be instructed to send an email to [email protected].

🌟 Loyalty Program

PeerBerry offers a loyalty program to investors who have been members for more than 90 days. The program is based on the amount of money you have invested and comes in 3 levels:

• Silver: for an active investment portfolio above €10,000 you will get 0.5% on future investments.
• Gold: for an active investment portfolio above €25,000 you will get 0.75% on future investments.
• Platinum: for an active investment portfolio above €40,000 you will get 1% on future investments.

This means that if you are a member of the Silver Program, for instance, and invest in a loan that provides an 11% return, you will automatically be upped to 11.5%.

💡 Potential Risks

One of the main risks with any peer-to-peer platform is Loan Originator default. PeerBerry offers an additional guarantee, further to the BuyBack guarantee mentioned above, specifically for such potential cases.

The platform stated that their main partner, Aventus Group, has signed an additional guarantee agreement. This means that in case of loan originator default, Aventus Group and Gofingo will “do everything … to protect your investments, maintain transparency and good reputation of all partners – loan originators”, as A. Lekavičius explains on their blog.

80% of total loans on the platform are accounted for by Aventus Group, with Gofingo following at 15% and Lithome at 5%.

It is important to note that in 2019, Aventus Group posted a net profit of €12.6 million, whereas their equity stood at €14.3 million. These figures suggest that the company would be able to cover any liabilities, should they come up. A comprehensive article with Aventus Group CFO comments can be found here.

Coronavirus Effects

All P2P platforms have been affected by COVID-19, and PeerBerry are no exception. The positive side, however, is that they have maintained a good level of communication with their investors.

🙋 FAQs

Who can invest in PeerBerry?

Investors must be 18 years old and over, with a European bank account. Both private individuals and companies can join the platform.

Who are the loan originators?

PeerBerry provides a comprehensive list of loan originators, together with a description of each originator. You can view the whole list here.

Does PeerBerry have a Secondary Market?

No, PeerBerry does not have a secondary market at the moment.

Do I get the same interest on overdue loans?

Late or overdue loans generate the same interest per annum as current or active loans. They cover the delayed period, until the borrower makes a repayment or until the loan originator buys back the investment.

Do I pay taxes on my returns?

Taxes are not deducted by the platform on investments made by private individuals. It is the investor’s responsibility to pay the taxes on any income made through the platform. Taxation is based on the legislation of your respective country of residence.

Can I cancel my investments?

PeerBerry does not offer this option at the moment. They are, however, working on implementing this functionality on long term loans in the near future.

Will I be notified of any new investments?

PeerBerry sends out newsletters to whoever signs up to the service. They include monthly reviews, as well as alerts for any new investment opportunities and new loan originators.

Alternatives to PeerBerry

At the moment, the most popular alternatives to PeerBerry are Swaper and Income Marketplace. Have a look at those platforms if you want to diversify your funds across multiple sites.

📍 Conclusion

PeerBerry offers a multitude of investment opportunities, specifically with respect to short term and long term loans. The platform has been continuously expanding its loan originator network, which I believe is a step in the right direction.

As with many peer-to-peer platforms, PeerBerry offers an Auto Invest function and a BuyBack guarantee. Unfortunately, however, no secondary market is available yet.

The platform presents you with daily/weekly summaries of your transactions, as well as the ability to generate tax statements. This is a great tool to facilitate the monitoring of your investments. Keep an eye out for their blog for any important and new information they may publish.

Join PeerBerry

Invest with Profitus

Profitus is a Lithuanian real estate crowdfunding and investments platform. It acts as an intermediary between investors, who are looking to employ their free money and those who want to receive funding for business ideas and real estate projects.

When I asked them what their main goal is, they said:

Our main goal is to make investment available to everyone. Even those who doesn’t know a lot about investing.

That’s a typical story with such platforms, nothing new here.

How does Profitus work?

So let’s take a deeper dive.

Investments start at 100 euros. Investments are secured by pledging real estate, as well as by other collaterals (e.g., indemnity or warranty). Different projects have different security tools that users can access in self-service for each project.

Profitus opened for business on the 8th of August 2018, so it’s already been in operation for a few years now, and any platform that survives 5 years plus typically is getting things right.

The platform has funded more than €100 million and helped raise money for 805 real estate projects. There are more than 29,000 investors registered as of March 2023.

Some stats from Profitus:

• Investors earned an average annual interest of 10.65%.
• All investments in the Profitus platform are secured by pledging a first-rank mortgage.
• Average investment at Profitus platform is 10,371 €
• 477 projects have already successfully repaid their investments and earned interest from investors.
• Maximum platform LTV (loan-to-value) 70%.
• Average LTV in 2023 – 56%
• Average loan term (month) – 11,34 months
• Profitus platform is regulated and supervised by the Bank of Lithuania.
• Profits accepts investors from all EU.

Note that LTV stands for loan-to-value ratio. It shows the percentage of loan in the pledged property. So if the borrower seeks to raise EUR 70,000, its pledged real estate to investors must be at least EUR 100,000, in which case LTV will be 70%.

The lower the LTV percentage, the better, as it means more real estate is pledged to investors. However, it should be borne in mind that the mortgaged property is a primary mortgage.

What Opportunities Are Available?

By investing through Profitus, individuals can gain exposure to different types of real estate investments, which can be broadly categorized as follows:

1. Residential property investments: Investors can invest in residential properties such as apartments, houses, and townhouses. These investments can generate income through rental payments from tenants or potential capital gains when the property’s value increases over time. Residential projects listed on Profitus may include new constructions, renovations, or refinancing of existing properties.
2. Commercial property investments: Profitus provides opportunities to invest in commercial real estate, including office buildings, retail spaces, warehouses, and other business-related properties. Investors can earn income from these investments through rental payments from businesses occupying the properties or potential capital gains if the property value appreciates.
3. Property development investments: Investors can participate in funding property development projects, such as new construction, renovations, or expansions of existing properties. These investments typically involve providing loans to property developers, which are then repaid with interest once the project is completed and sold, or refinanced through traditional financing methods.
4. Real estate-backed loans: On Profitus, investors can also invest in loans secured by real estate assets. These loans are typically provided to property developers or borrowers who require funds for various property-related projects. The loans are backed by collateral, usually in the form of real estate, which provides a level of security for investors. Investors can earn returns on these investments through interest payments made by the borrowers.

The vast majority of projects are based in Lithuania, which is great if you want exposure to the economy of this country.

How to Borrow Money Through Profitus

The website also details the process that property developers go through when applying for loans.

They previously promised a reply in 2 days, which is on the optimistic side and could suggest a lack of serious due diligence. This is no longer promised on the site, but I still have some concerns about their due diligence procedures given how many projects they published on the platform since their inception.

If we take the optimistic stance, they might just have a great team that is very efficient at processing applications and doing due diligence, and also a great pipeline for new projects.

Team Behind Profitus

The founder of Profitus is Viktorija Cijunskyte. Viktorija is also a co-founder of asset management company Victory Funds and real estate development company CITUS.

The about page on the Profitus website shows a good-sized team with a short description about each person and a link to their Linkedin profile.

They seem to be a young team, with limited experience being the number one factor that I would think about when I look at their profiles. But that alone is not enough reason not to trust the platform.

How does Profitus handle risk?

RE evaluation and business analytics experts on the team evaluate each funded project individually to set a risk rating ranging from A+ to F.​

Profitus have also developed a unique risk assessment algorithm to determine the rating of the project. This algorithm consists of a wide range of individual indicators and evaluations which focus on funding requirements and an appraisal of the property by an independent appraiser, the project owner, and the final beneficiary, their financial indicators, credit rating, experience, and reputation. Profitus also evaluate the project, its potential and concept, business plans presented by the project owner, and the pessimistic scenario plans, which incorporate possible market developments and the risks that could affect the project. 

How does the project vetting process work?

I’ve asked Profitus for more details about their project vetting process. Here’s what I learned:

1. In the first stage, the application is evaluated by the Project Manager, who, after asking questions and collecting the necessary documents for the inspection (Financial statements, business plan, company composition and JA register data, valuation of the mortgaged property from a third party) – decides whether the project is suitable and has the potential for financing.
2. Then the project manager forms a financing protocol. The protocol data is collected from local registers: the company’s credit history and shareholders with a larger than 20% package, property registration, and existing property restrictions and pledges are checked. The completed report is submitted to the credit committee for evaluation.
3. The credit committee’s business, real estate, and financial analysts evaluate all project information using a unique risk assessment algorithm that determines the risk rating and offers a financing price. In addition, real estate analysts perform a cross-check to determine the property’s value using a comparative method with similar transactions that took place on the market and previous transactions for the purchase and sale of the mortgaged property.
4. The credit committee makes the decision to finance or not by presenting the terms of the proposal.

Withholding taxes

Profitus practices a 15% tax retention that is deducted from investors’ profits, which is a deal-breaker for me. The vast majority of other platforms don’t take this cut, so it’s an unnecessary reduction of profits that doesn’t make sense given how many alternatives to Profitus there are.

I asked Profitus to explain why they withold taxes on profits and here’s what they had to say:

According to Income Tax Law of the Republic of Lithuania, Profitus is responsible for the collection and payment of income tax for non-residents. The income tax rate is 15 percent and it is deducted from earned interest. The platform automatically deducts it every time when loan installment is received.

If you are a non-resident of Lithuania and you are living in a country which has valid Double Taxation Avoidance Treaty with Lithuania, you can apply for the reduced personal income tax rate.

After application for withholding tax deduction, Profitus will apply a reduced PIT rate to the investor, with a deduction of 10%, or in case of Latvia or the United Arab Emirates – 0%.

I understand that this is one reason why other platforms opted to base their company in Estonia, and I believe Profitus should do the same if they want to compete on a level playing field with other platforms.

Moreover, this fact is not clearly mentioned on the website, and I know that several investors have been very disappointed to learn about the fact only when they went to withdraw their earnings.

Alternatives to Profitus

There are several alternative platforms to Profitus that cater to investors interested in real estate crowdfunding.

One notable example is EstateGuru, which operates across multiple European countries and offers short-term, property-backed loans to borrowers.

Similarly, CrowdProperty focuses on the UK market, specializing in financing small-to-medium-sized property development projects.

Another option is Reinvest24, a platform providing investors the opportunity to invest in various types of properties, including residential and commercial, across Europe.

These platforms, like Profitus, offer an opportunity for investors to diversify their portfolios, access various real estate markets, and potentially earn passive income through interest payments or rental income.

My Opinion on Profitus

The best thing about Profitus is that it allows us to invest in Lithuanian real estate. I’m very bullish on Lithuania as a country and have several friends there who report about things improving very rapidly in the economy, the startup culture and real estate.

I definitely consider Profitus to be a good option for Lithuanian-based investors since they will not be hit by the tax retentions, and they can read the website in Lithuanian as well as communicate with the team in their native language. It’s also a good option for UAE residents since they pay no withholding tax due to the DTA treaty between Lithuania and the UAE.

For the rest of us, I think suffering a withholding tax cut of 15% is a significant disincentive to invest on this platform. Structuring your investments in an intelligent way tax-wise is one of the most important pillars of investing.

However, if you want to invest in Lithuanian real estate specifically, then Profitus is one of the best options around.

Check out Profitus

Have you invested in Profitus? What are your thoughts and experiences?

Crowdestor is a platform where investors can invest in business, real estate, transport and startup projects from just 50 Euro.

The platform has around 19,500 investors, with an advertised average interest rate of 19.69% over a total €55.5 million in raised funds so far.

My Results

I have personally achieved an average interest rate of 12.70% on the projects that have concluded. The big problem is that there are many projects that are in debt collection or have been delayed for months/years.

Of course, COVID played a big part, and I was quite unlucky with some of my bigger investments, given that two restaurants I had invested in never even had the chance to open to the public due to lockdowns and a slowdown in the catering industry. This caused them to default.

As I had mentioned in a previous version of this review, I have been very selective of which projects I invest in, as I never felt comfortable evaluating certain types of projects, which in my opinion were always wild bets. We’re talking about movies, video games, castles, etc. In my opinion, not even Crowdestor was able to ever conduct any due diligence on these projects, and I’d never use a platform to invest in this type of project anyway. If anything, it would have to be an investment where I can go in directly and would have a direct line to the creators behind the projects.

In my previous update, I had expressed my worries about the delays and types of projects I was seeing on the platform, and I had been critical of other bloggers that went all out praising the platform for its incredible returns. I had also said that only time would tell whether this is a solid platform or not.

I’ve seen enough to say that I don’t feel confident at all about Crowdestor, so I would not recommend investing in any project on this platform.

Not enough projects have finalized and returned investor money. While the ones that did have complied with their promises, it is simply too early to say that this is a great platform worth investing more money into.

If you’re looking for a quality Peer-to-Peer lending platform with good returns, check out my favorite European P2P lending platforms.

If you’ve already invested in Crowdestor, like me, I hope that the platform manages to turn things around, but I’m not counting on it.

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