These are my annualized latest rates of returns on the various peer-to-peer landing platforms that I’m invested in:
- Mintos – 11.42%
- Viventor – 15.51%
- Bulkestate – 14.75%
- October – 7.12%
- Reinvest24 – 8.01%
- iFunded – 5%
- Bondora – 6.75%
Hopefully, this will serve to give you an idea of the kinds of returns you can make with this alternative investment class.
I also invest in other platforms where the rate of return is harder to calculate as the investments are not all loans. For example with Property Partner, many of the projects are buy-to-sell projects or development projects whose rate of return will only be known once they are completed and sold on the market.
When calculating returns, keep in mind that you will most probably have to pay tax on those P2P lending returns in your country of residence.
As this is a risky asset class, I would recommend investing an amount of money that would not cripple your life if it were to eventually get lost due to the various risks of P2P lending. If your risk tolerance is higher and have several income streams as I do, then you can invest a bit more.
If you’re thinking of investing in P2P as an overall investment strategy, you can check how P2P compares to other investments on my other post about that topic. You can also read about what I think are the best peer-to-peer loan platforms in Europe as of this year.
I read so little about Linked Finance on review sites. You have a very comprehensive site but, like many similar sites, nothing about Linked Finance. Having lost money on a couple of Spanish platforms (Comunitae and Arboribus), Linked Finance has been the one platform where I’ve made a lot of money. But I was also making money on Arboribus before things went pear-shaped, so I’m always wary that things could change, and I recently divested a lot of money from Linked Finance to diversify with other platforms, just in case. I’d be curious to hear what you think. Here are my figures so far, having used the platform since December 2014:
Total Lent
€132,170.00
Principal Repaid
€104,042.01
Interest Earned
€15,303.29
Principal Outstanding
€28,127.99
In my current portfolio, I have 346 loans that are on time with repayments, 3 late repaying, 21 on a repayment break (these have been negotiated between Linked Finance and their clients since the COVID crisis), 4 with alternative payment arrangements (again, in response to COVID), 37 in default and 2 bad debt.
I’m concerned about the rising number of defaults, though the proportion probably looks worse than what it really is, because I started divesting in the platform, so many of the good loans have reached their term and I’ve not been reinvesting. I have 389 loans that have finished on time and a further 130 that were settled early.
So total loans paid on time or early or up to date with payments are 346+389+130 = 865 loans.
Total loans in default, arrears, bad debt or rescheduled = 3+21+4+37+2 = 67 loans.
I hadn’t come across Linked Finance Timothy. Your results are pretty good though. At the moment I have low trust of Spanish platforms just because of the general sense of unprofessionalism and incompetence in the financial sector in Spain.
Hello Jean,
Why don’t you invest in P2B like Crowdestor, Wisefund and Kuetzal?
I do and will be writing about them in due course.
I thought you wouldn’t because they are similiar platforms to Envestio and you don’t invest in Envestio.
What do you think of these platforms?
Thank you
I can tell you that I’m quite skeptical of some of the projects they have.
I think with time we’ll see them offering more trustworthy projects, so for now I prefer to keep my bigger investments in P2P platforms like Mintos, real estate platforms like Property Partner and Reinvest24, and I’m currently very interested in invoice factoring platforms like Investly and Novicap.