Passive income · Uncategorized

PeerBerry Review: a steady 12.03% return


PeerBerry has been a steady rock in my portfolio for a while now. I kept the investment rather stable and have even been slowly increasing it. It is giving me a steady 12.03% income without to much hassle so it will continue to be a part of my portfolio and thats why I decided to Review Peerberry.

If you are a more advanced reader and are already familiar with PeerBerry then scroll further down to find out what auto-invest settings I am using in this PeerBerry Review.

What is PeerBerry exactly?

PeerBerry is a Fintech company where you can invest in loans. This system is called peer to peer lending. Basically PeerBerry is a mediator between Loan Originators who provide loans to individuals. As an investor you invest in those loans and get a certain return.

The Loan Originator provides you with a lower interest rate then they are providing to the individuals. In exchange they provide insurance under the name of buy back guarantee. That means if a loan defaults they will buy back the loan. Be aware that not all Loan originators offer buy back, so its important to check this before investing.

Because you can invest already from a small amount (10 EUR), that means that if you invest 500 EUR it is spread over 50 loans and different loan originators.

Its important to note one thing that gives additional confidence in PeerBerry: PeerBerry has send me their financial statements and they are making a profit!

Registration

On the site just click the “Start Investing” button to go trough the wizard for Registration. Have your passport ready before you start and you need to use a device with a camera such as a smartphone or laptop, you will need them at the ID verification screen.

PeerBerry will take you trough a very simple wizard to get you registered.

I recommend that you fill in your phone number as it will allow you to enable two factor authentication.

In the next screen you will need to fill in more details including your passport or ID number

Once you signed up you can start investing.

Overview

Once you finished the registration process take your time to get familiar with PeerBerry. PeerBerry has a nice simple overview screen where you can view your balance, profit and investments.

You can also view your investment statuses, unlike other platforms its quite rare that loans are in delayed payments. The Loan Originators must do a really good due diligence here. Buybacks are rarely needed.

You can also see your Net Annual Return, it seems to show slightly more then the return I calculated.

Depositing money

Before you can invest you will need to deposit money. I usually use bank transfer. It took just a few hours to reach my account when I deposited on a workday. You can use the time to get to know PeerBerry better and read up on its Loan Originators.

When you click “Deposit / Withdraw” you will come to the deposit screen where you will find the bank details. Remember to deposit using the right Payment Details as these will contain your investor number.

Withdrawing money

I could only withdraw money to my own bank account, which is positive of course as it makes my money more secure.

I withdrew 100 EUR when I was re-balancing investments with ease.

Investing

Loan Originators

Before you start to invest its important you do your homework and decide on what loan originators you want to invest in. I personally went for a medium – low risk range of Loan Originators.

On explore p2p (you can view the full list here ) you can see a great rating of all the loan originators on PeerBerry. I personally went for Medium – low Risk. Aventus group is a really big secure Loan Originator that can be trusted. In the bottom there is some smaller Loan Originators but they did get a group guarantee from Aventus, so I decided to trust them.

In the end you will need to decide on this yourself. I did start the first months with all loan originators enabled and so far I have not experienced any problems and very few delayed payments.

Source: explore p2p

Primary market

When you click the invest button you go to a search screen containing all investments you can put money in.

This is the manual investment method. If you want to choose exactly what loan originator to invest in then this would be the screen you use. Just make sure to select buyback yes. There is no reason why you would take in additional risk. You will notice there is quite a few of loans available you can invest in.

Auto-invest

PeerBerry has also supplied the more passive investor, like myself, with a tool to make it easier to invest.

I mentioned before how important it is to check the loan originators you invest in. You can find more be

I chose the auto invest and to be honest so far the loan originators I have invested in have performed really well. The max portfolio I have set indicates me that I have a diversified portfolio although it is really difficult to see how diversified I am.

PeerBerry is still young and I see them making changes regularly (the two factor authentication was only recently added), so I am confident more improvements will come soon!

You can see my settings here:

What is important is to select the buyback guarantee and to make sure your portfolio is not that much higher then your actual portfolio. I also set the loan amount a bit higher because there are some periods that there is less loans available on PeerBerry. For the same reason I set the time at 20 months. This is quite long but I want to avoid cash drag.

I set the minimum interest rate at 10%, but most loans I invest in have a higher interest rate. The 10% is just good to allow for more diversification, but if you don’t mind a riskier strategy you could get away with a slightly higher percentage.

Other important settings are portfolio size (set this a little higher then the amount you will invest), and minimum/maximum in one loan. I set my maximum at 20 EUR.

If you put it to low you will not get a decent piece of good loans that hit the market, if you put it to high it will be hard to diversify. A lot depends of the size of your portfolio.

The secondary market

Right now PeerBerry has no secondary market. You will be exposing yourself to a liquidity risk if you decide to invest for long loan periods. From this perspective it might be more interesting to search for shorter term loans. I have confidence in PeerBerry and see it as an investment over many years that’s why I do not mind to put in 20 months.

I just would start with a lower amount of months at the beginning to see if you like the platform.

Reports on your investments

On PeerBerry its a bit harder to see how your diversification is doing. When you go to My investments you can get a report on what you are invested in, so you are able to do your own reporting.

But the information is not perfect. I was told by PeerBerry this will be one of the next features they will improve.

Security

When I joined PeerBerry in September 2019 PeerBerry did not had two factor authentication enabled. But as you can see in the beginning of my blog they now do! Its great that they have this added security in place.

Apart from that PeerBerry will only write back to your own bank account, giving again added security.

Loyalty Program

Something unique about PeerBerry is that they have a loyalty program. So if you are loyal to the platform you will get additional bonuses. They have three ranks, silver, gold and diamond. They are not so easy to reach but the bonus silver is giving is already a nice extra. So far I have not reached it yet, but as I continue to like PeerBerry I don’t exclude I will at some point.

Risks

Investing is not without Risk. Assuming you invest in your own currency then in the case of PeerBerry I see a few main risks:

  • A loan you invested in could default. If you have bought all the loans with buy back guarantee, which you should, the risk is moving to the LO’s defaulting,
  • You can invest using buy back guarantee but Loan Originators can go bankrupt. This has happened a few times with LO’s having low ratings. This is why I chose to invest only in LO’s with rating B and above. Additionally the auto invest will help you to diversify in case it does happen. Also you will still have your claim on the loan if it happens, this will not change. It will just become a lot harder to get your money back.
  • PeerBerry could go bankrupt: I consider this as a small Risk. PeerBerry has over 7 employees so is no longer a startup but not a very big company either. It also released its yearly P/L and there it was shown to be a profitable company. In the case PeerBerry does go bankrupt your claim is still there on the loans.
  • Liquidity Risk: the risk that you cannot get your money out in time when you need it. This is a very real risk since they have no secondary market. If you cannot part from your money for to long avoid long terms.

I decided that the risks are worth the return, but everyone needs to decide for themselves and act with due diligence.

Financial statements

I did not find the financial statements on the Website but PeerBerry gave them to me right away when I asked for them. To be honest being one of the younger players I was surprised that PeerBerry is already profitable!

Remember these are the 2018 figures. I will request new statements of 2019 in spring and expect them to be better!

With 17500 investors and 191M loan portfolio PeerBerry is really on the map and cannot be called a smaller player anymore.

I can supply the full statement on request but you can view the last part here:

I’m looking forward to the 2019 numbers!

Transparency and communication

PeerBerry has supplied me all the information I asked for and are usually quite fast to answer. They are open about their financial situation and their loan originators. This is how I would expect a peer to peer lending site to act. Perhaps as an improvement more information on their Loan Originators and Financial’s of PeerBerry could be shown directly on the Website.

Where to sign up

I would like to stress that I would not review PeerBerry if I didn’t use it myself, I have a lot of faith in PeerBerry. If you do decide to take the step then I would appreciate it if you use this link as you will be supporting my blog when you do so.

Conclussion

In conclusion I am very happy about PeerBerry and will continue to expand my investments there. I consider PeerBerry a great platform in terms of Risk / Return and am working to increase the amount it has in my portfolio.

FeaturePeerBerry
Sign up BonusYes
Allows company profileNo
AppNo
Auto-invest optionYes
Buyback guaranteeYes
Fees?No
General transparencyGood
Invest in individual LoansYes
Invest in other currenciesNo
Invest in projects (such as real estate)No
Loyalty BonusYes
ProfitableYes
Released P&LYes
Secondary MarketNo
Staff is knownYes
Transparrent about Loan OriginatorsYes
Two factor authenticationYes
Euromoney Rating4,2/5

Passive income · Uncategorized

Mintos Review: how you can get a 11.38% return

Last updated 02-02-2020

Mintos is my favorite peer to peer investing platform. It is the platform I will recommend to friends if they want to start in peer to peer. The transparency and many options of the platform make it a good place to invest both for high and for low risk seekers. Those many options are important. As a new user you might want to invest your money as fast as possible and don’t pay attention to what is important. Read my review and find out how you can get a 11.38% return relatively safe.

If you are a more advanced reader and are already familair with Mintos then scroll further down to find out what 30 Loan Originators I chose in my auto-invest.

What is Mintos exactly?

Mintos is a Fintech company where you can invest in loans. This system is called peer to peer lending. Basically Mintos is a mediator between Credit companies who provide credit to individuals. As an investor you invest in those loans and get a certain return.

The credit company or (also known as Loan Originators) provides you with a lower interest rate then they are providing to the individuals. In exchange they provide insurance under the name of buy back guarantee. That means if a loan defaults they will buy back the loan. Be aware that not all Loan originators offer buy back, so its important to check this before investing.

Because you can invest already from a small amount (10 EUR on primary market), that means that if you invest 500 EUR it is spread over 50 loans and different creditors.

Its important to note two things that give additional confidence in Mintos: Mintos is profitable, and Mintos is the biggest peer to peer site outthere.

Registration

On the site just click the “Create an account” button to go trough the wizard for Registration. Have your passport ready before you start and you need to use a device with a camera such as a smartphone or laptop, you will need them at the ID verification screen.

Mintos will take you trough a very simple wizard to get you registered.

Once registered the very first thing you should do is verify your account. This is general advise for all platforms you plan to use. Click the Verify button in order to do so.

Then Mintos can start taking photos of you and your ID card to make sure your identity is verified.

Overview

Once you finished the registration process take your time to get familiar with Mintos. I personally think the Mintos overview screen is one of the best.

The account balance shows how much funds are in your account right now. How much is available (to invest), how much you currently have invested, and lastly pending payments, these are payments that borrowers did to the Loan Originators and are going to be transferred to your account within the next 5 days.

The Net Annual Return part shows your annual return. I have quite a conservative investment strategy on Mintos and I am happy to see that the return Mintos has calculated is a good match with the return I calculated myself (11.38%).

The last screen shows my investments. As you can see about 2/3 of the payments are late somehow. This is normal on Mintos and is nothing to be concerned about. When the loan is overdue for over 60 days then the Loan Originator will buy back the loan, plus interests (if you selected the right Loan Originator in the auto-invest module).

If you click on current it gives you a great overview of all the loans in your portfolio. It then automatically filters on current, I just unselect current by clicking the X to see all my investments:

This gives a beautiful overview of all the investments you have,their term and their status. As you can see I do not have optimal diversification as I’m very exposed to Capital Service. This was because when I first started investing I went more for high returns rather then diversification. However this is something that will get solved in time.

At the left screen you also have a lot of filters you can select should you wish to know about anything in particular.

Depositing money

Before you can invest you will need to deposit money. I usually use bank transfer. In this case it will take about two days to reach your account. That’s fine, you can use this time to get used to Mintos and set up your auto-invests. If you can’t wait you can use Direct transfer, this will go much faster.

Withdrawing money

I could only withdraw money to my own bank account, which is positive of course as it makes my money more secure.

Investing

Invest & Access

If you are interested in a lot of diversification and no hassle then you can use the invest & access option. I personally prefer to choose my investments myself but I know that this option has a large appeal to a lot of people

Auto-invest

Mintos has a great auto-invest tool, the only thing I am missing is a way to combine the primary and secondary market, forcing me to create two auto-invest rules. Other then that it allows all the options I can think of I would need.

Before setting up the auto-invest I want to mention the Loan Originators. Its crucial that you check up on these before you start investing. Here you can find a list that Mintos makes available.

When you click on one of the loan originators you will see for example its rating. This is a rating that Mintos themselves give to these Originators.

Also something to pay attention to is bellow in the details tab

There is two things important: penalty income and income on delayed payments. If not one of these is set to Yes, that means that if a loan is 60 days late you will just get the principal back and no interest. So not a very good investment. I personally would avoid investing in LO’s that do not provide either one of these.

For my auto-invest I have two rules, one of the primary and one for the secondary market.

I selected only Loan Originators of rating B and higher, that give interests or penalty’s on late payments. After selecting A, A-, B+ and B that meant I had to unselect Acema and EBV Finance.

I also unselected Finko as this is a group now but without a full group guarantee. ID Finance I kept but unselected B-. Last LO I did not select was Getbucks as I need to know more about their current financials before I decide to invest there. I do have some loans from most of these that I unselected and I just plan to keep them for now. Lutecredit I kept selected as I have faith in Lutecredit despite of the bad exposure with the Kosovo loans.

As rate I set a minimum of 10% to make sure I get both a decent interest rate, and a decent diversification. If you set it to high its very difficult to diversify.

Other important settings are portfolio size (set this a little higher then the amount you will invest), and minimum/maxumum in one loan. I set my maximum at 10 EUR to get as much loans as possible.

The secondary market

The differences with the secondary market is that you can already invest from a 1 EUR limit and that you can buy loans with a discount

Its really important to set the premium to 0% otherwise you will pay more then the loan is worth. You might think that you can recover that if its a high interest loan, but if the loan goes into default and you get a rebuy, you lose that premium you paid. You could consider placing it bellow 0% either, taking advantage of people who want to leave the market.

The secondary market is actually a huge advantage from Mintos as it allows you to sell your loans in case you need to leave. This is making your money more liquid although you can assume it will take 3-4 months to get all of your money out if you need to. But this is better then a lot of platforms that do not have a secondary markets or charge penalty’s for withdrawing money. Do not underestimate how powerful this feature is!

What have I been earning?

So far I must say that the earnings on Mintos have been very positive, reaching an interest rate of 11.38% and this fully diversified. It is only because I feel so safe on this platform and I have such a great return that I decided to write a Mintos Review. So far with 10.000 EUR Invested of my own money, and increasing monthly, I can say it has been a very good investment so far!

Security

Apart from that Mintos will only write back to your own bank account, Mintos has two factor authentication in place. Something I highly recommend you use. When you hover over your name you can click on “My Account” and there in security you can see how to set it up

Currency Exchange

Mintos has the option to invest using other currencies. Usually these loans give a higher interest rate, which is expected as you are exposing yourself to a currency risk.

I have not used it myself but its nice that they have this option.

Risks

Investing is not without Risk. Assuming you invest in your own currency then in the case of Mintos I see a few main risks:

  • A loan you invested in could default. If you have bought all the loans with buy back guarantee, which you should, the risk is moving to the LO’s defaulting,
  • You can invest using buy back guarantee but Loan Originators can go bankrupt. This has happened a few times with LO’s having low ratings. This is why I chose to invest only in LO’s with rating B and above. Additionally the auto invest will help you to diversify in case it does happen. Also you will still have your claim on the loan if it happens, this will not change. It will just become a lot harder to get your money back.
  • Mintos could go bankrupt: I consider this as a small Risk. Mintos has over 100 employees so is a full grown company. It also released its yearly P/L and there it was shown to be a profitable company. In the case Mintos does go bankrupt your claim is still there on the loans.
  • Liquidity Risk: the risk that you cannot get your money out in time when you need it. The secondary market mitigates this risk and I believe it should be possible to get your money out within 4 months.

I decided that the risks are worth the return, but everyone needs to decide for themselves and act with due diligence.

Transparency

Mintos releases a yearly report about its financials in April every year. You can view it here. The main thing is that Mintos had a 4.6M revenue in 2018, 59 Employees and 98k investors funded 1400M loans.

If you look on the Mintos homepage you can now see that there is 236k investors, more and 4300M loans funded. That shows to me the platform was not only healthy in 2018 but continues to be in 2019. All important factors for me to choose Mintos as one of my top investment platforms.

You can also see the full team of Mintos on their website and click trough a lot of Linkin profiles. Something I did with a few, and most are older profiles who have 500+ connections. Some are even a 3rd connection of me.

Also when there is bad news Mintos is open with communication. This was the case when a few of the LO’s lost their license to operate in Kosovo. Within a week we got news that both the Monegro and Lutecredit loans (the two LO’s that were affected) would be paid in full. Granted with a 5% exposure it was a long week, but even during that week Mintos was sharing news as it was coming in, making me feel like they were on the case.

Transparency is in general always a plus, and Mintos has shown to me it’s one of the most transparent platforms, not only about positive news but also about negative news. I can’t wait to see the financial statements of 2019!

Special referral deal: 90 days 1% bonus + 0.5% cashback!

Mintos has a referral program that gives a 1% bonus the first 30 days. However if you use my link then until end of March 2020 you will get he 1% bonus for 90 days and a 0.5% cashback! This is a one time unique offer that Mintos made for my readers.

I would like to stress that I would not affiliate myself with anything I do not support 100%, I have a lot of faith in Mintos and recommend you give it a spot in your portfolio. But if you do decide to take the step then I would appreciate it if you use my link as a way to support my blog.

Conclussion

In conclusion I am very happy about Mintos and will continue to expand my investments there. I would recommend this platform for anyone who wants to invest in peer to peer. I consider Mintos has the best platform Risk/Return ratio out-there.

FeatureMintos
AppApp is currently in Beta atm
Auto-invest optionYes
Buyback guaranteeYes
Fees?No
General transparencyVery good
Invest in individual LoansYes
Invest in other currenciesYes
Invest in projects (such as real estate)No
ProfitableYes
Released P&LYes
Risk compared to other p2p platformsLow
Secondary MarketYes
Staff is knownYes
Transparrent about Loan OriginatorsYes
Two factor authenticationYes
Passive income · Uncategorized

Mintos Review: how you can get a 11.09% return

Mintos is my favorite platform. It is the platform I will recommend to friends if they want to start in peer to peer. The transparency and many options of the platform make it a good place to invest both for high and for low risk seekers. Those many options are important. As a new user you might want to invest your money as fast as possible and don’t pay attention to what is important. Read my review and find out how you can get a 11.09% return relatively safe.

If you are a more advanced reader and are already familair with Mintos then scroll further down to find out what 30 Loan Originators I chose in my auto-invest.

What is Mintos exactly?

Mintos is a Fintech company where you can invest in loans. This system is called peer to peer lending. Basically Mintos is a mediator between Credit companies who provide credit to individuals. As an investor you invest in those loans and get a certain return.

The credit company or (also known as Loan Originators) provides you with a lower interest rate then they are providing to the individuals. In exchange they provide insurance under the name of buy back guarantee. That means if a loan defaults they will buy back the loan. Be aware that not all Loan originators offer buy back, so its important to check this before investing.

Because you can invest already from a small amount (10 EUR on primary market), that means that if you invest 500 EUR it is spread over 50 loans and different creditors.

Its important to note two things that give additional confidence in Mintos: Mintos is profitable, and Mintos is the biggest peer to peer site outthere.

Registration

On the site just click the “Create an account” button to go trough the wizard for Registration. Have your passport ready before you start and you need to use a device with a camera such as a smartphone or laptop, you will need them at the ID verification screen.

Mintos will take you trough a very simple wizard to get you registered.

Once registered the very first thing you should do is verify your account. This is general advise for all platforms you plan to use. Click the Verify button in order to do so.

Then Mintos can start taking photos of you and your ID card to make sure your identity is verified.

Overview

Once you finished the registration process take your time to get familiar with Mintos. I personally think the Mintos overview screen is one of the best.

The account balance shows how much funds are in your account right now. How much is available (to invest), how much you currently have invested, and lastly pending payments, these are payments that borrowers did to the Loan Originators and are going to be transferred to your account within the next 5 days.

The Net Annual Return part shows your annual return. I have quite a conservative investment strategy on Mintos and I am happy to see that the return Mintos has calculated is a good match with the return I calculated myself (11.09%).

The last screen shows my investments. As you can see about 2/3 of the payments are late somehow. This is normal on Mintos and is nothing to be concerned about. When the loan is overdue for over 60 days then the Loan Originator will buy back the loan, plus interests (if you selected the right Loan Originator in the auto-invest module).

If you click on current it gives you a great overview of all the loans in your portfolio. It then automatically filters on current, I just unselect current by clicking the X to see all my investments:

This gives a beautiful overview of all the investments you have,their term and their status. As you can see I do not have optimal diversification as I’m very exposed to Capital Service. This was because when I first started investing I went more for high returns rather then diversification. However this is something that will get solved in time.

At the left screen you also have a lot of filters you can select should you wish to know about anything in particular.

Depositing money

Before you can invest you will need to deposit money. I usually use bank transfer. In this case it will take about two days to reach your account. That’s fine, you can use this time to get used to Mintos and set up your auto-invests. If you can’t wait you can use Direct transfer, this will go much faster.

Withdrawing money

I could only withdraw money to my own bank account, which is positive of course as it makes my money more secure.

Investing

Invest & Access

If you are interested in a lot of diversification and no hassle then you can use the invest & access option. I personally prefer to choose my investments myself but I know that this option has a large appeal to a lot of people

Auto-invest

Mintos has a great auto-invest tool, the only thing I am missing is a way to combine the primary and secondary market, forcing me to create two auto-invest rules. Other then that it allows all the options I can think of I would need.

Before setting up the auto-invest I want to mention the Loan Originators. Its crucial that you check up on these before you start investing. Here you can find a list that Mintos makes available.

When you click on one of the loan originators you will see for example its rating. This is a rating that Mintos themselves give to these Originators.

Also something to pay attention to is bellow in the details tab

There is two things important: penalty income and income on delayed payments. If not one of these is set to Yes, that means that if a loan is 60 days late you will just get the principal back and no interest. So not a very good investment. I personally would avoid investing in LO’s that do not provide either one of these.

For my auto-invest I have two rules, one of the primary and one for the secondary market.

I selected only Loan Originators of rating B and higher, that give interests or penalty’s on late payments. After selecting A, A-, B+ and B that meant I had to unselect Acema and EBV Finance.

I also unselected Finko as this is a group now but without a full group guarantee. ID Finance I kept but unselected B-. Last LO I did not select was Getbucks as I need to know more about their current financials before I decide to invest there. I do have some loans from most of these that I unselected and I just plan to keep them for now. Lutecredit I kept selected as I have faith in Lutecredit despite of the bad exposure with the Kosovo loans.

As rate I set a minimum of 10% to make sure I get both a decent interest rate, and a decent diversification. If you set it to high its very difficult to diversify.

Other important settings are portfolio size (set this a little higher then the amount you will invest), and minimum/maxumum in one loan. I set my maximum at 10 EUR to get as much loans as possible.

The secondary market

The differences with the secondary market is that you can already invest from a 1 EUR limit and that you can buy loans with a discount

Its really important to set the premium to 0% otherwise you will pay more then the loan is worth. You might think that you can recover that if its a high interest loan, but if the loan goes into default and you get a rebuy, you lose that premium you paid. You could consider placing it bellow 0% either, taking advantage of people who want to leave the market.

The secondary market is actually a huge advantage from Mintos as it allows you to sell your loans in case you need to leave. This is making your money more liquid although you can assume it will take 3-4 months to get all of your money out if you need to. But this is better then a lot of platforms that do not have a secondary markets or charge penalty’s for withdrawing money. Do not underestimate how powerful this feature is!

Security

Apart from that Mintos will only write back to your own bank account, Mintos has two factor authentication in place. Something I highly recommend you use. When you hover over your name you can click on “My Account” and there in security you can see how to set it up

Currency Exchange

Mintos has the option to invest using other currencies. Usually these loans give a higher interest rate, which is expected as you are exposing yourself to a currency risk.

I have not used it myself but its nice that they have this option.

Risks

Investing is not without Risk. Assuming you invest in your own currency then in the case of Mintos I see a few main risks:

  • A loan you invested in could default. If you have bought all the loans with buy back guarantee, which you should, the risk is moving to the LO’s defaulting,
  • You can invest using buy back guarantee but Loan Originators can go bankrupt. This has happened a few times with LO’s having low ratings. This is why I chose to invest only in LO’s with rating B and above. Additionally the auto invest will help you to diversify in case it does happen. Also you will still have your claim on the loan if it happens, this will not change. It will just become a lot harder to get your money back.
  • Mintos could go bankrupt: I consider this as a small Risk. Mintos has over 100 employees so is a full grown company. It also released its yearly P/L and there it was shown to be a profitable company. In the case Mintos does go bankrupt your claim is still there on the loans.
  • Liquidity Risk: the risk that you cannot get your money out in time when you need it. The secondary market mitigates this risk and I believe it should be possible to get your money out within 4 months.

I decided that the risks are worth the return, but everyone needs to decide for themselves and act with due diligence.

Transparency

Mintos releases a yearly report about its financials in April every year. You can view it here. The main thing is that Mintos had a 4.6M revenue in 2018, 59 Employees and 98k investors funded 1400M loans.

If you look on the Mintos homepage you can now see that there is 236k investors, more and 4300M loans funded. That shows to me the platform was not only healthy in 2018 but continues to be in 2019. All important factors for me to choose Mintos as one of my top investment platforms.

You can also see the full team of Mintos on their website and click trough a lot of Linkin profiles. Something I did with a few, and most are older profiles who have 500+ connections. Some are even a 3rd connection of me.

Also when there is bad news Mintos is open with communication. This was the case when a few of the LO’s lost their license to operate in Kosovo. Within a week we got news that both the Monegro and Lutecredit loans (the two LO’s that were affected) would be paid in full. Granted with a 5% exposure it was a long week, but even during that week Mintos was sharing news as it was coming in, making me feel like they were on the case.

Transparency is in general always a plus, and Mintos has shown to me it’s one of the most transparent platforms, not only about positive news but also about negative news. I can’t wait to see the financial statements of 2019!

Special referral deal: 90 days 1% bonus + 0.5% cashback!

Mintos has a referral program that gives a 1% bonus the first 30 days. However if you use my link then until end of March 2020 you will get he 1% bonus for 90 days and a 0.5% cashback! This is a one time unique offer that Mintos made for my readers.

I would like to stress that I would not affiliate myself with anything I do not support 100%, I have a lot of faith in Mintos and recommend you give it a spot in your portfolio. But if you do decide to take the step then I would appreciate it if you use my link as a way to support my blog.

Conclussion

In conclusion I am very happy about Mintos and will continue to expand my investments there. I would recommend this platform for anyone who wants to invest in peer to peer. I consider Mintos has the best platform Risk/Return ratio out-there.

FeatureMintos
AppApp is currently in Beta atm
Auto-invest optionYes
Buyback guaranteeYes
Fees?No
General transparencyVery good
Invest in individual LoansYes
Invest in other currenciesYes
Invest in projects (such as real estate)No
ProfitableYes
Released P&LYes
Risk compared to other p2p platformsLow
Secondary MarketYes
Staff is knownYes
Transparrent about Loan OriginatorsYes
Two factor authenticationYes
Uncategorized

Grupeer review: how I get a 13.2% return

What is grupeer?

Grupeer is a Fintech company where you can invest in loans. This system is called peer to peer lending. Basically Grupeer is a mediator between Credit companies who provide credit to individuals. As an investor you invest in those loans and get a certain return.

The credit company provides you with a lower interest rate then they are providing to the individuals. In exchange they provide insurance under the name of buy back guarantee. That means if a loan defaults they will buy back the loan.

Grupeer offers buy back guarantee on most loans, with some exceptions. When you invest its quite clear if a loan has a buy back guarantee or not.

Because you can invest already from a small amount (10 EUR), that means that if you invest 500 EUR it is spread over 50 loans and different creditors.

Grupeer also has a second way to invest, but that is discussed more bellow.

Interest rates are, according to Grupeer 13.19. For me personally its a little bit lower, but I will come back to that later.

Registration

On the site just click the “Register” button to go trough the wizard for Registration.

Fill in the data, and then click Register. You will then need to activate your account trough your mail.

Once your email is confirmed you will also need to confirm your identity.

If you hover over your name you can you to the identity page. You will need to fill this in, and provide a copy of your ID or passport for identification. Without it you cannot start investing.

Overview

The most important part is of course the loans and the ROI, however a nice overview is always good to see.

(The income bellow is over a period of 2 months)

www.grupeer.com

What I am missing here is the average interest rate earned so far and the expected interest rate for my current portfolio. I don’t know if they can calculate these numbers, but since they are showing it on the main page I am assuming they can.

The good news is they do show the total income, so I am using that to calculate it myself for now. Based on the above I get give or take about 13.2% per month at Grupeer, although I feel I have not been investing long enough to know this for sure. Follow my portfolio updates to find out how much profit

Depositing money

On the deposit page you will get to read on how to add money to your account.

Basically you do a normal bank transfer and add Grupeer will tell you (on this page) what ID you need to pass as payment details (your own ID of course).

Of the 9 lending platforms I currently invest in Grupeer does take the longest to get the money onto the account. Although still it only takes a few working days. I remember especially the first time I deposited it felt a bit to long. Now I am more patient as I know it will come.

Withdrawing money

Withdrawing cash is quite easy. You also have just your own bank account where you can withdraw money to. Its both to prevent money laundering but also in case someone gets access to your account.

Investing

Loan deals

In Grupeer there is different ways and places where you can invest. The first is to invest manually in loans. If you hover over invest and click “loan deals” you can go to the menu

What we see with Grupeer is that there is a lot of IR of 12-13%. This is quite high for a lending platform (although I heard it used to be higher). The green image behind the name means the loan comes with a buy back guarantee. There is a lot of loans with buy back guarantee. I would not recommend to get any loan that doesn’t have this.

There is an option to invest automatically in these loans. You can do this by using the auto invest option. I will get back to that later.

Development projects

The second method to invest is development projects. While loans are more for individuals here you can invest in businesses and companies. Usually these are real estate projects. As the interest rates are not much higher and you invest here manually I decided not to invest in these.

I do invest in projects but just not on this site.

Secondary market

Grupeer does not have a secondary market yet. While it is planned at some point, it means that for now there is no fast way to get your money out. If that is important to you then you might not want to invest in loans that run for to long.

Auto invest

Grupeer does have an auto invest option, and that is quite important as we want to generate passive income.

My autoinvest settings

Loan originators. I only selected 25/36. I deselected all loan originators who have a C and D rating. More about how you can find the rating bellow (as Grupeer did not made it so easy).

I loan all loan types and to all countries.

As interest rate I put 12,5% and I have not changed it in 2 months. I always seem to have some loans there, and not much cash drag.

The term I put on 16 months. That means it would take me about 16 months to get all of my money out. An acceptable term for me.

Auto invest limit was set to 6500, I just increase this as my money in Grupeer is increasing.

Max amount per loan, currently set to 20. The lower the better, but if you put it to low you need to spread over to many loans and if not enough loans are available you could get cash drag.

Repayment type I unchecked “baloon” as I wanted to have loans that give me a monthly income.

Last but not least I only invest in loans with buyback guarantee.

Creditors rating

It’s not so easy to find where Grupeer keeps its rating. I had to log out, click on Blog (oddly I have no access to this when I am logged in), and then search on rating. On a blog post of the 31st of October I found the ratings that Grupeers creditors currently have.

Its only a feature since the 31st of October. Once I saw the post I unselected the C and D creditors, of which I did notice I had purchased some loans, that have paid back so far.

What is interesting is that creditors with a good rating do not necessarily have a bad interest rate.

Grupeer income statement and balance sheet

Apart from the Creditors of course we also want to know if Grupeer itself is profitable. While it seems that Grupeer is still taking a small loss (not uncommon for a new company), it does have a very healthy balance sheet. And with an income of 580.000 / year having a 46.000 loss does not so severe on a healthy balance sheet. Even if something happened to Grupeer your contract is with the Creditors and not with Grupeer. Grupeer is just the mediator. But you never know and that’s why you should always spread your investments.

Grupeer did not have to publicize this so it does show confidence that they did.

(The numbers bellow are from tax year 2018)

Profit & Loss
Balance sheet

Referral program

If you use this link to register then I will get a referral bonus. While its greatly appreciated if you decide to register using my link, this is not the reason I recommend this platform. As you can see I invested in this myself and am investing more every month. That means that I fully believe in Grupeer.

Conclussion

I really like Grupeer. I transfer at the time of writing 400 EUR monthly to Grupeer that is being automatically invested. Its a good way of generating a passive income while spreading your risk. I would recommend to make Grupeer part of your investment strategy if you want to generate a passive income.

Improvements I would still like to see is two-factor authentication, a secondary market and more statistics on the overview page.