Compare P2P lending platforms
This interactive P2P lending comparison table is made to help readers understand where they can find the most value if willing to invest in direct loans
In order to compare peer to peer lending websites in the right way I needed to collect a lot of information that I am happy to share here
Compare P2P Lending
|Platform||True Rating||Average yield %||Size in M€||LTV||Cur||Bonus||Protection|
|Estateguru 🇪🇪||⭐️⭐️⭐️⭐️+||12||107 ⬆️||57 %||€||25€ + 0,5%||Collateral/Properties|
|Mintos 🇪🇪||⭐️⭐️⭐️⭐️+||6 - 18||2000 ⬆️||€+10||1 %||Yes|
|Bondora 🇪🇪||⭐️⭐️⭐️⭐️||8 - 79||200 ⬆️||€||5 € (direct)||Optional|
|Housers 🇪🇸🇮🇹||⭐️||9||79||?||€||25 € (fix)||Collateral|
|Lendix/October 🇮🇹🇫🇷||⭐️⭐️||10||280||€||20 € (fix)||No|
|Fastinvest 🇬🇧||⭐️⭐️||9 - 16||13 ⬆️||€||Referral||Yes|
|Neo Finance 🇱🇹||⭐️⭐️⭐️||9 - 24||31||€||25 € (direct)||Optional|
|Bridgecrowd 🇬🇧||⭐️⭐️⭐️⭐️||12||130||50 %||£||Referral||Collateral|
|Peerberry 🇱🇻||⭐️⭐️⭐️||13||70 ⬆️||€||X||Yes|
|Proplend 🇬🇧||⭐️⭐️||7 - 9||117||60 %||£||Referral||Collateral|
|Property Partner 🇬🇧||⭐️⭐️⭐️⭐️||9||131 ⬆️||55 %||£||Referral||Collateral|
|Envestio 🇪🇪||⭐️||22||13 ⬆️||€||5€+0,5%||Partial|
|Crowdestate 🇪🇪||⭐️⭐️⭐️||19||64 ⬆️||80 %||€||X||Collateral|
|FinBee 🇱🇹||⭐️⭐️⭐️||18||25 ⬆️||€||X||No|
|Bulkestate 🇪🇪||⭐️⭐️||12 - 21||4||53%||€||X||Collateral|
|BorsaDelCredito 🇮🇹||⭐️||5||58 ⬆️||€||X||Optional|
|Soisy 🇮🇹||⭐️||4 - 7||3||€||X||No|
|Linked Finance 🇮🇪||⭐️⭐️||6 - 17||75||€||X||No|
|Kiva.org 🇺🇸||⭐️⭐️⭐️⭐️⭐️||0||18||$||Gift 25$||Trust|
I wanted to establish genuine ratings and build a reliable comparison list of P2P crowdfunding platforms (direct loans)
To do so, I applied a complex set of objective and non-objective parameters
For the sake of transparency, I disclose some of these here
Among the objective factors that most affect my ratings are certainly:
- the age of the platform
- the overall size
- the attitude of customer service
- the information I get from management
- the background of the lending office
The existence of a liquid secondary market, the availability of safety nets and ease of use are also crucial.
Why on earth should I also trust non-objective parameters to compare P2P lending websites?
My beautiful arbitrary answer is my experience.
My P2P ratings are heavily influenced by what I’ve learned so far while investing myself.
Why? Because it just worked fine for me, so far. That’s all.
How to choose the right P2P lending site?
I believe the excessive P2P website offer should not scare investors. There are a few ones worth checking and others that are just too young to be assessed for their track record.
The success of investors in P2P lending mainly depends on two factors:
- Choosing the right lending platforms
- Using the P2P tools and automations in a proper and safety-oriented ways
Other objective factors I take into account when choosing the right P2P lending websites:
the ease of transaction – the low fees – the size and the number of the loans – the nationality of the instrument
the type of loans – the amortization model – the cost and modalities of an early exit -the way they deal with bad debt and recovery
the overall transparency – the quality and readability of the disclosed statistics – the APR charged to borrowers
the reliability of the assigned ratings – the openness to international investors – the type of borrowers – the focus on security rather than yields
the possibility to fragment the capital – the number and growth of investors over time
Two last things I personally value a lot, whenever applicable, are:
- the “ethicality” of the loans
- the level of trustworthiness in investors relations
I’ve built this table because I am personally invested in many of these platforms and I have a clear idea of what I want from P2P investing. I use this blog to keep track of my path towards financial freedom and I never stop learning. I use the feedback I receive from my readers to further improve the quality of my production and also for my personal growth.
I suggest you collect information and, should you determine P2P investing fits your needs, go for it and make a wonderful informed decision.
Keep in mind at all times that not-investing comes with a (huge) price too.
For standardized ratings written by unknown and non-expert individuals, I recommend you to head to the many average consumer reviews websites.
I do my best to maintain absolute originality and independence in my work.
I do not form my opinions through what is available in the industry forums for obvious reasons. I perform my tests using my own savings. Skin in the game.
These Peer to Peer ratings aim to establish the quality and also the risk/return ratio according to my standards. Always keep in mind that absolute safety does not belong to this world and even less to this type of investment.
Which is the best Peer to Peer lending site ever?
Please don’t answer: “it depends”!
Ok, I won’t…but I also believe there is not an absolute winner.
I also consider that using just one platform can be limiting, as it could be inadvisable to put all eggs in one basket.
I know you’re tired of blogs writing clichés like this one of “the eggs”. I do my best to be straightforward and somehow even helpful. This thing of the eggs and the basket is just killing me softly…
As you already know I don’t only go after the higher yields because I value a lot more the relative “safety” of the tools. P2P is not “safe”100% so I am convinced I have to aim for the safest P2P platforms and the safest setups.
- If I am investing in euros and I want to go for the biggest and most affirmed P2P tool, I could think of Mintos (with a proper setup).
- Should I think of one of the oldest (older can be also reliable if it got old without dissolving) I think about Bondora (2009). Bondora can be challenging but very rewarding with the right setup.
- If I am one that wants to “see” where my money goes, I’d definitely prefer business loans platforms, something like October and Flender.
I like October (Lendix) because it is getting bigger and older. I like Flender because it has the smallest default rate ever (o,2%). Most projects are absolutely cool.
Envestio is fast growing, but it’s not my thing (for now).
- Thinking about real estate crowdfunding I like Estateguru (12%, in euros) that is growing and has a low default rate.
How much should one invest in P2P lending?
Like any other investment P2P can be risky, so I will not allocate 100% of my money in P2P.
The main question for me is that P2P resilience has not been tested yet during a deep, painful and prolonged market downturn.
Yes, there was already some P2P lending in the 2007-2012 years but it wasn’t as big as it is now. Before there were stocks, bonds and cash. Now there are also direct loans (and maybe cryptos), so I want to be ready to take the maximum advantage from change.
Will some investors move from stocks to P2P instead of bonds? Will small platforms go belly up? Will first world countries be affected the most? Pascal’s principle of communicating vessels can be applied rather successfully in the financial world to predict the future during a crash. Unfortunately, only a few investors are good with timings, so this is quite useless to the most of us. It will be absolutely interesting to see where the money will go during the next financial crisis.
Honestly? I’m looking forward to profit as much as I can from the next market downturn. In the meantime I protect my P2P investments by selecting the best tools and creating the most sensible setups.
Said this, I’d never invest more than 50% of my savings in P2P lending. I know, some investors do, especially because they like the “low maintenance” investment lifestyle that P2P is offering.
One of the aim of this blog is also to show that wise P2P lending investing is possible. I want to reduce mine and my readers “financial depression risk”. I am using my newsletter to inform of any change or danger that can affect P2P investors from my humble (investor) point of view.
What states allow P2P lending?
Some Muslim countries can have a special regime for P2P because charging interests may not be allowed the way we do it in Europe. Most countries in the world allow and regulate P2P lending practice.
How do I invest in P2P lending?
- I decide if P2P investing fits my needs (do I like higher yields/Higher risks/less volatility?)
- I choose 2 or more platforms to start with
- I deposit and setup automatic investment tools
- I reinvest every single euro I earn to create compound interest
Is P2P lending safe?
Nothing is 100% safe, but I like the low volatility of P2P lending, and the chance to exit the investment offered by many tools.
Is P2P lending profitable?
It is said that more than 95% of P2P investors in Europe make profits steadily above 5%, but this data is just too young the be reliable.
In my case yes, it is highly profitable.
I am a trader and what I enjoy the most is the lower stress I get from diversification in direct loans investing.
I am invested in thousands of loans in more than 20 countries and my average yield exceeds 10% on a yearly basis.
In order to boost my profits I normally sign up using “refer a friend” links that (when available) entitle me to receive a bonus on my first investments. No generous cashback will ever influence my investment decisions.
Can one lose money with P2P lending?
I haven’t lost a cent with P2P loans so far, but somebody told me “Past Performance Is No Guarantee of Future Results”, and I believe this a basic rule for every wise and adaptive investor.
I am not employed by any of the companies mentioned above, and should this change, you will be notified to avoid a conflict of interest.