Twino BBG vs PG loans

Screen Shot 2017-03-25 at 21.14.43

Twino has made an update in the loan product lineup they offer for investors, adding a new loan type “payment guarantee” to the previously existing “buyback guarantee” loan type. So what is the difference between the two?

As an investor…

For an investor payment guarantee allows for slightly more stable cash flow. Essentially when you used to invest into a loan, and it got delayed then the payment was made late when the BBG triggered. With the payment guarantee the idea is that the interest payments would always be made on time due to Twino taking a role in ensuring the payback. I’m honestly not sure how much of a difference it would be for most investors – the delay for BBG loans isn’t really that long most of the time.

However, this might be something that might encourage investors to lock their money into longer term loans since Twino is ensuring that regular interest payments happen. I’ve been allowing longer length loans into my portfolio for a while, and had no issues (a lot of them get bought back anyways, so there was no reason not to allow them in). Question now being though, which loans will be listed in the future with payback guarantee and which ones with buyback guarantee?

Another issue in addition to the potential loan lengths offered is the interest rates. It’s clear that the interest rates offered by Twino currently are a bit off, in the sense that there isn’t much difference between the short term (1 month) and the long term (24 month) loans. Payment guarantee is a potential tool that might allow them to differentiate between the two loan lengths, which is likely to result in the 1-month and other short term loan interest rates dropping (down to something like 7-8%).

As Twino…

The main benefit I see for Twino is twofold. Firstly, by encouraging investors to lock in their money into longer interest loans, it will allow them to manage incoming cashflow a lot better instead if having to rebalance it every month. I mean, as a CFO it must be much nicer to see steady predictions for the next 12-24 months instead of the next 1-3. Currently P2P investors are rather fickle, and switch between portals rather quickly.

Secondly, as mentioned, the potential interest rate drop. We’ve been seeing some testing on lowered interest rates in the previous weeks already, and clearly this trend is likely to continue. Since it’s obvious that there is enough of a supply of investors on the site (as evidenced by the fact that a lot of investors have cash piling up), then it’s reasonable for them to not overpay but to test what’s the sweet spot where they get enough financing, but don’t stop losing investors.

So the question is…

How long are the payment guarantee loans going to be? If they’re long term loans then it would make sense for them to keep their interest rate.

How high is the interest rate going to be? By providing investors with an extra layer of ‘security’, investors might be more relaxed about lower interest rates.

I haven’t managed to catch any payback guarantee loans on the market yet, but it’s definitely something to keep an eye on as they start appearing on the market since they might show an insight into future interest rates.

Twino and Mintos portfolios, 6m

The great Latvian face-off! How has it been going? Time to take a look.statustwino

Twino

So, when it comes to Twino the original plan was to have short term loans only to balance out the fact that most other of my investments are long term (such as Bondora and Omaraha). At start it was working well, but Twino has been playing around with interest rates quite a bit, so I’ve adjusted my plan a bit and ended up investing into longer term loans (since they offer 13% interest at the moment) and keeping only a part of the portfolio in very short term loans.

The interest difference of course isn’t that much, but realistically the likelihood that I would have to take out all of the money quickly enough for it to matter is small enough to be probably quite irrelevant. If I just need to cash out quickly then there is a somewhat functioning secondary market, and I’m keeping enough money in cash to not really be worried about the slightly reduced liquidity. Overall, I think they’ve managed to find a place in the Baltic P2P market and will prove to do well in long term too.

Mintos

statusmintosNow, when it comes to Mintos, then I buried my plan of investing only into short term loans way before I did with Twino. I do have two autobidders running, one of them catching shorter term loans, but with mogo offering 13,5% with buyback as well, there isn’t really too much of a reason to diversify that much across different loan providers (especially considering the fact that I have investments in other portals as well). So if I look at the balance of my portfolio right now, then about 75% of the loans are mogo car loans with long deadlines.

When it comes to the volume, neither Twino or Mintos have had issues. Whenever I add more money, it gets invested in minutes, and I can see why a lot of people who start on either of these sites don’t really feel the need to diversify across too many more portals. Overall if I look at the 5 core portals in my P2P portfolio, then by portfolio value the division would be Bondora > Crowdestate > Omaraha > Mintos > Twino. A couple of months ago the first three were trailing ahead quite a lot, but I’m letting the last two catch up since I think they’ve both proven their value in both the volumes provided, with transparent data & expansion plans and just overall great communication. To sum up, I’d say that they have both been worthy additions to my P2P portfolio.

Risk levels of real estate crowdfunding

With the (arguably) impending crisis, many people have started to look into the risk levels of their investments with a bit more diligence. I asked Loit Linnupõld (Crowdestate) and Marek Pärtel (Estateguru) a few questions about how risk is managed in their investment portals.

realestate

How to assess the risk of crowd funding real estate?

The problem with many hybrid ways of investing is that evaluating the levels of risk associated with it becomes difficult due to how some risks may help balance out others while some may actually compound and create additional risk. Some things to keep in mind:

  • All real estate projects, crowd funded or no, follow the ups and downs of the market. If the market falls out from underneath you, then this will influence you whether you are in rental real estate, business real estate or crowd funding projects.
  • Crowd funding adds both a level of certainty (wisdom of the crowds) and a level of unreasonable enthusiasm (others are investing, so it must be good). You should still base your decisions on your own analysis, not on what others are doing.
  • (Real estate) crowd funding is still a new enough investment that we don’t have significant historical returns to base our thoughts on. Then again, past returns don’t predict future returns anyways. We can however ‘ballpark’ based on existing data in similar fields.

What do the portals do to manage risk?

I asked both Loit (CE) and Marek (EG) about how they manage risks, and how they hope to prevent problems from happening in their portfolios.

In case of a real estate crisis do you feel that crowd funding real estate & real estate loans are overall more or less risky to own than individual pieces of real estate? (Let’s assume a reasonably diversified portfolio).

Loit (CE): It really depends on a specific property, it’s cash flows and financial leverage. Technically, property is property regardless of whether it has been acquired directly or through crowdfunding. Nevertheless, I believe crowdfunding adds a new layer of common knowledge and if we combine that with crowdfunding platform’s due diligence (if they do it), that can significantly reduce the risk of picking wrong assets. Crowd is much smarter than any single individual alone and it is quite remarkable, that the wisdom can be shared and spread digitally between crowdfunders.

Marek (EG): To be prepared for a potential real-estate crises, smart investors should watch out not only for high returns but also for low and diversified risks. Every investment is a risk and once you accept this fact, then next thing that comes into play – it is how well you understand those risks and what measures you take to control them.  One of the best things to control risks is diversification. Individual investors can’t typically buy several pieces of land or properties, to diversify their risks. If you bought a flat you still depend on developments in vicinity of your property. Its price may go down even without a crisis.

EstateGuru p2p lending platform gives you the possibility to significantly diversify your portfolio, splitting your money into smaller pieces between different types of loans (flip, bridge, buy to let, mezzanine, commercial, land, residential etc), in  different locations by different borrowers and in the future also even in different countries.

One should understand the difference between investing in property crowdfunding (investment into equity and no security to investors given) and crowdlending platforms (investment secured by mortgage). We would suggest investors to do always their own stress tests- what happens to their investment if market goes down 20% (predicted m2 price of  is not 2000 but 1600). In case of, say a 20% market decline, do investors  earn some profit still, do they get back their invested money in some portion or lose it all- it largely depends on the capital structure of the project – what obligations the Borrower or Developer needs to fullfill before paying to platform investors.

Today we see clearly from UK, Europe and US statistics (altfi.com, Lendit.co) that institutional investors prefer lending platforms over crowdfunding ones as safer bet when making their capital allocations.

How has Crowdestate/Estateguru prepared for potential economic downturn scenarios? What kind of defences are in place to keep oversight of the projects and protect the investors’ money?

Marek (EG): First of all, all investments on EstateGuru platform are protected with 1st or in some cases 2nd charge mortgage. Not all Crowdfunding platforms have this security in the first place and with any fluctuations in Economy, their investors will be hit first. Smart looking business plans and fancy projects are not sufficient when property prices go down. But at EstateGuru we implemented second level protection – LTV at our projects is never higher than 75%, normally its around 60-69%, which means that even if property prices go down 25% we would still be able to recover our investors’ funds in case the borrower fails to repay the loan. In addition to the mortgage EstateGuru often asks the Borrower for a personal guarantee as extra security in order to make his EstateGuru loan repayment the top priority.In addition our partners have years of experience in Real Estate and we are able to foresee bad signs much in advance, so we will start working with Borrowers (refinancing, sale of assets etc.) much earlier to prevent Investors from litigation process and from potential partial loss.

Loit (CE): We continue to do our proper due diligence, picking only the best and business wise reasonable investment opportunities. Someone has pointed out, that most of the profits are earned at the moment of purchase and a our due diligence is focused on eliminating the odds of opening a bad project for crowdfunding.

Regular meetings with Sponsors (i.e. developers) and pre-agreed reporting formats ensure we have adequate information on project’s progress.
As the real estate related bank lending becomes less and less available, there will probably be a decrease in new projects started and we might see some of its effects in next 12 – 18 months.
What is the absolute worst case scenario of what can happen to the projects in your portfolio?

Loit (CE): There are several absolute worst case scenarios, that might happen, and they all end up with real estate becoming worthless (Russian tanks invading Estonia) or completely illiquid (like in the end of 2008 to mid 2009, requiring the major global economic crisis hitting employment and income).  Both scenarios might probably lead to partial or complete loss of the investment, depending on the specifics of the project (location, timing, leverage, demand etc). Its all about project’s cash flow – if you are able to generate cash either through even slow sales or leasing the property out, you will probably survive. Collateral is not the replacement of cash flow.

Marek (EG): A sharp decline in property prices (say 50%) lack of overall demand for property and in case of default longer than expected litigation time could be the worst case scenarios. Since our projects are diversified between residential and commercial, in different locations and are on top of that protected with 1st Charge Mortgage (this means our investors  will have 1st claim on the money received from property sale) and LTV of no higher than 75 (currently average is 60% at EstateGuru) – we feel that all above mentioned measures make our investments one of the best protected on the market and give best risk/return ratio.


As you can see, both portals have given significant thought to what might happen in case of an economic downturn. I do agree fundamentally that a retail investor can never diversify to the extent that is possible with crowdfunding. However, it is important to keep in mind that you don’t stop analysing projects even while you are still diversifying – it’s better to not take in a bad project even when you aren’t really diversified yet.
In addition to that, I like that Loit also pointed out the wisdom of the crowd and Marek emphasised that all investors should stress test their own portfolios to make sure they are making correct investment decisions for their own risk levels.
Thanks to Marek (Estateguru) & Loit (Crowdestate) for answering!

New portfolio manager Q&A with Pärtel Tomberg

The new portfolio manager for Bondora was released, so of course emotions as usual are running high. My first thought was – holy sh** – this can’t be how the new PM works – you just have to go through two confirmation screens and essentially pick one option out of three to start investing. So, after my initial reaction I had a chance to get some answers from the CEO Pärtel Tomberg about the reasons why the new system ended up as it did. (You can read their official pre-release post here.)

The answers by are by Pärtel (unedited) and my comments are in italics. (Before we start, I gotta say the answers I got from Pärtel were impressively detailed, and a much better show of communication then anything I’ve seen in the past couple of years. Some of the ideas I don’t agree with but he does show their mindset quite well.)

Screen Shot 2015-10-23 at 13.48.41

1. What was the design logic for having more simplicity? Don’t most investors want to more actively manage their investments? 

a.       Our main goal is to deliver net returns higher than available on the public stock markets regardless if you manage your portfolio actively or passively. We want to deliver the results regardless if you are investing 1,000 euros or 1,000,000 euros.

b.      Approximately 80% of the investments are coming from investors who only have used automated portfolios (passive investing) and 20% from investors who are actively managing their portfolios (loan picking, secondary markets, custom strategies on old Portfolio Manager etc.). We conducted extensive interviews and surveys in the beginning of the year and found out that the passive customers actually considered our product (Portfolio Manager) very complex and wanted a single control centre along with easy overview on top of getting access to Bondora’s returns. Active investors on the other hand wanted very granular reporting and loan picking options. It became evident that trying supporting both within Bondora website would be impossible as neither group’s needs would be satisfied.

(I have heard this complaint as well that the current PM as-is was difficult to use, and helped several people set their PM up.)

c.       Therefore we made a decision to build a super easy and light weight product for the retail investors and create an API to support the more active, trader types. We will now release an API that is open to third parties to build services on top of our platform (e.g.http://www.lendtower.com/, https://beeplus.me/). The second version of this API (version 1.0 is in our sandbox) will be coming early November and will include Primary Market buying, Secondary Market buying, Secondary Market selling and setup to support third party developers. Later this year we will also roll out full reporting package after we have updated and corrected the reporting package on the web.

(So far we haven’t gotten much info on the API and the things third parties are doing with it. I had two developers mark that at this point the API wasn’t as good as it could be, but hopefully Bondora is accepting recommendations from the people working on developing the interactions for API.

Also… corrected the reporting package on the web? I’ll believe it when I see it 😉 )

2. Why did you decide to change the way account value was shown ? (meaning the 60+ loans being counted only as the unpaid-by-this-moment as opposed to the whole value of 60+ with maybe a combination of expected % of recovery?)

a.       The objective of the dashboard is to give investors an immediate view of the profit of their portfolio. This profit is calculated using the net investments made by the investor to date (deposits less withdrawals) and the value of their portfolio.

b.      Investments into loan portfolios are fixed income investments whereby an investor exchanges a certain amount of capital for a steady stream of monthly payments that are higher than the initial investment. The key here is the monthly payments. Part of this return comes from interest and part of this comes from reinvestments interest that in turn generates both new principal payments and interest – e.g. cumulative interest.

c.       All loans are priced on the assumption that a certain proportion of loans are not repaid. The default and corresponding recovery is factored into the interest rate so that interest payments on performing loans are high enough so the total portfolio delivers the expected return.

d.      As interest and reinvestments of repaid principal are made monthly then all provisions are matched to the same period. Otherwise we would compare lifetime losses of a portfolio with the interest income of a a couple of months. This logic would potentially work only with a very short investment focus but as investing on Bondora is a long-term investment then it does not make sense.

e.       There are two financially sound alternative views to calculating the portfolio value the way we do in the new dashboard. First is based on IFRS rules for banks and the second based on repricing of all loans in the portfolio according to a similar logic we use for pricing new loans. We plan to roll out both methodologies by the end of the year so that in the future investors can choose which context fits their requirements.

f.       In case you disagree with our logic and would want a simple alternative to check the net annualized return than simply compare the interest income of your portfolio with the amount of capital you have invested on Bondora (deposits – withdrawals) for a certain period. This would be ROCE logic (http://www.investopedia.com/terms/r/roce.asp).

g.      PS! Discounting the balance of overdue loans and matching this number with income makes sense for mortgage and super-prime loans (e.g. ZOPA) where the income of the performing portfolio is negligible so a loss can effectively never be priced/repaid by income on the portfolio.

(I think this is a tricky issue – overall for new investors seeing a more balanced view, but long term this becomes a bit problematic because the number of what’s shown on the dashboard vs what’s shown in the pie chart will differ by a magnitude of 10x.)

3. How should the passive investor decide between the three risk classes? (What should be the ‘decision tree’ that leads them to a specific type of investment?)

a.       First of all an investor should decide if and how much of their portfolio they would like to invest on Bondora. Passive investors typically invest between 5%-10% of their portfolio on Bondora and are not that much concerned of additional diversification (as they have already diversified by only allocating 5-10% to Bondora).

b.      The three risk-return options allow you to decide if you want to build a portfolio that is on average less profitable (and risky), more profitable or at average profitability.  

c.       Each of these options comes with different expected returns however the actual risk of the portfolio (losing money on a portfolio vs. the gains) is always determined by the diversification level. Our statistics has shown that after 200 investments the volatility of returns stabilizes based on if you took the less or more risky route. However in most cases investors earn considerably more than anywhere else on the market and almost never lose money (enclosed).

d.      In summary, investors should first decide if they want to by the types of unsecured personal loans that Bondora can deliver and how much they want to invest. If this amount is enough to diversify (we think that you should consider building up a total portfolio of at least 1,000 euro to meet this condition) then thereafter the actual risk of your portfolio is not influenced anymore by the types of loans you pick.

(Once again… the decision making is slightly problematic. When I try to think about which of the three options I should choose, I would probably struggle. Long term valuations of high risk – high reward can be hard to project the value into the present.)

4. Do you feel that the current one-window check screen for the investor to verify their understanding of risk is sufficient to guarantee that investors are adequately analysing the risks associated with investing? (How are less knowledgeable investors protected from making bad investment decisions?)

a.      In order to invest on Bondora the investor needs to review the information on our landing pages that based on FCA guidelines include full information about risks and processes. You should be confident that you want to invest through Bondora when you sign up and you should only invest a certain share of your portfolio. Typically our customers invest 5-10% of their capital with Bondora and they consider this part of their alternative investments portfolio (potentially higher return but less liquid/higher risk).

b.      The Portfolio Manager page includes information on the expected returns (that are net of losses), an overview of how the portfolio is expected to grow, the expected composition of your portfolio (by risk level and country), expected numbers based on levels of diversification as well as detailed explanations of how different numbers are calculated.

c.       We believe all these steps and detailed information is sufficient to make an investment decision on a 5-10% proportion of an investors portfolio. This level of detail is considerably more extensive than you would find with the people selling pension funds (in supermarkets), online FX sites or online asset managers. We also think our information is considerably more detailed than any other marketplace lender.

(The last in particular is an interesting statement, that your P2P portfolio should be 5-10%. While most bloggers try to direct most investors into this direction, then not many starter investors follow this – for many the P2P section of their portfolio is anything from 50-100%.)

5.  How does the risk balancing process work? How far “out of balance” will the portfolio tip before you stop investing into a group to wait for others to rebalance?

a.       The system calculates your portfolios risk level after each batch of investment and only buys batches of loans with a risk level lower or higher than your existing portfolio depending on your strategy. In general customers who have signed up for the new portfolio manager are looking to decrease the risk of their portfolio.

(This would definitely be interesting to see. If this algorithm works well, then whoever designed it definitely deserves a raise. Also, when the previous PM was launched in January I also set it to be more conservative than my existing portfolio, so I guess I fall in to that ‘general’ subset of investors.)

6. The sizes of the loan pieces – take the sample of my portfolio, what would the investment per loan be (and why isn’t this visualised anywhere?)

a.       The size of each investment is determined by the number of borrowers in your portfolio. The investment size is doubled after each 200 investments (the file enclosed earlier explains the logic). Your (as in me, Kristi’s) portfolio has 680 borrowers which means that your bid size will be 40 euro (or 0.72% of your outstanding portfolio). This level delivers an optimal investment time as well as risk diversification.

b.      This number is not visualized as the people we interviewed when developing this product never raised the topic. We are happy to add this in case our customers request it. Most people never think of how much they would invest into granular assets within the category they are investing in. For example if you choose a pension fund you never think or decide on how many euro per month is invested for each stock or bond in the portfolio.

(Yes, please visualise this :) )

c.       If everyone would sign up to the new product the roughly 83% of the investors would be at 5 euro investment size however this number is more equally spread when we look at the amount invested.

Screen Shot 2015-10-23 at 23.23.50

(Alright, so now this is probably the most controversial of all the issues. My current portfolio value as you see above is about 6,5K. This means that at the rate I invest, which is about 150 euros per month, with returned money reinvested I will be investing into a total of…. 6-8 loans per month. I’m not entirely sure how I feel about that, especially since I’m on track to get to the 80 euro pieces quite soon. On the other hand, I was super surprised at the data that so many of the investors are at such small portfolio sizes that they would remain at the 5 euro piece – this means that they have <200 loan pieces, meaning a portfolio of <1000 euros. The data shows an intriguing look into the investor base of Bondora – a lot of retail investors who invest small sums, and a small % of investors with significant portfolios that make up almost a third of the money invested. This is the part where you have to keep in mind though – the people complaining on the forums are those who are a very vocal minority – the majority just sits still and lets their money get invested without causing a hassle on the forums.)

7.  Will the 80 euros per limit also apply when investing via API? Why was the decision made to lower the investment amount per loan? How many portfolios are likely to be investing at the max level of 80 euros per loan? (Also, if your account has less money than the assigned ‘loan piece size’ then will it still invest or wait for the money to stack up aka the problem of ‘cash drag’?)

a.       The 80 euro per loan limit was set to ensure that the proportion of each new loan in the portfolio is not higher than 1% of the deployed balance in most cases for customers converting from old products to the new. Such restrictions do not apply when investing over the API – you may fund the entire loan if you want through that channel. As the data showed earlier – roughly 2.6% of investors would be investing at that level in case everyone would convert to the new product.

b.      The new Portfolio Manager never invests fractional amounts to ensure the diversification rules are properly applied. This is already the case for most investors as the minimum investment amount is set already to 5 euro.

(I essentially read this as – the people who would use the API or those who would be investing the max 80 euros per loan piece are likely to overlap anyways so this is somewhat of a non issue.)

8. Does account value function imply that at one point selling whole portfolios will be possible? (Since 60+ loans are now sellable on the secondary market already.)

a.      The new Portfolio Manager will in the future include the option to sell part of or entire portfolio. Other investors using the Portfolio Manager will then pick these up in case there are not enough loans on the primary market.

b.      We are currently working on building the models to price outstanding loans so that loans on the secondary market would be priced according to the same logic as on the primary market. In essence this would mean that certain loans would be sold at balance value, some above and some below.

9.      How many investors are you predicting will be using the passive web interface vs how many will be holing out to use the API?

a.      We expect that roughly 80% of investors will use the passive web interface and rest will come through the API. Already after two days the new Portfolio Manager accounts for 45% of the new investments without any marketing.

(I think this % is very high – it’s a bit scary to seen that many people be so passive with their investments, but overall, Bondora is just about as passive for them as an average investment fund now, so maybe they shouldn’t be judged that strongly based on that. I’m tempted to try the new PM myself as well, just until the API is live since it will take time to test most third party apps for that as well.)

10.  Many of these changes are likely a precursor to more institutional investors coming on board – are you running any scenarios to assess the likely future balance between retail & institutional investors?

a.       We are building a structure where institutional and retail capital is collectively combined to allow consumers move away from banks. It is certain that institutional capital is going to be higher than ’self-directed’ retail capital as the markets are at very different sizes. However you should also understand that raising money from banks (who hold your deposits), pension funds (who manager your retirement plan) or insurance companies (who manage the funds to keep your home safe) are all retail investors simply packaged together.

(While this is already long then some final comments –  1. I do think that most people underestimate just how passive investors are, and a lot of our first impressions are strongly coloured by bad decisions made in the past by Bondora. While talking to Pärtel then he also mentioned that some reorganising is happening to manage investor relationships better. Though they have done this before, then I hope they do it better this time to generate answers for the more complex questions that investors are likely to ask. 2. If you feel like the new PM isn’t for you, then I recommend against activating it – but as you see from the data above most people are likely to activate and just be silent about it. 3. I reserve the right to guess more about these things once they’e been live for long and we can see a bigger impact of this on the way the market works.)

To finish up, a XIRR chart, kindly shared by Pärtel, to demonstrate the need for diversification:

Screen Shot 2015-10-23 at 23.59.48

Estateguru portfolio status, 3 months

A while back I wrote that I took a look into Estateguru as an investment opportunity due to wanting to both diversify and perhaps move a part of my lending portfolio into real estate backed loans. Since then they’ve slowly gotten their pipeline going and there is new projects happening every now and then.

estateguruaugust

What do I like about Estateguru so far?

  • While the interface and web page could be smoother, all numbers and transactions are clearly visible and I’ve had no issues so far trying to find information and failing to. (Looking at you here, Bondora!)
  • There’s a reasonable amount of data on each investment and there’s enough projects moving currently to have hope of not much cash drag happening.
  • The loan terms are short, meaning that the lack of a secondary market at the moment isn’t as big of an issue as it would be if the investments were 3+ years.
  • I don’t need to log on often to keep track of what’s happening – in that sense it’s way more passive than some other investments I have. (I trust they won’t make any big changes without previous info.)

Portfolio plans?

I’m currently a bit torn when it comes to my plans for Estateguru. Due to the short term of the projects, it doesn’t take long to create a kind of a cycle of investments. (It’s shorter than with Crowdestate for example). This means that in theory out of all my investments Estateguru is closest to a classical CD ladder (A strategy in which an investor divides the amount of money to be invested into equal amounts to certificates of deposit (CDs) with different maturity dates.), with markedly higher interest though!

This means that I’d have the option to keep investing 50€ per project (the minimum), until the year comes full cycle (next July) and then re-evaluate whether I want to increase the sums that I invest or keep them at the same level and lessen contributions. (Since you get interest paid, then for every next 50€ investment you need to add in less of your own money, and just reinvest the returns).

My current plan is to keep to the minimum to slowly diversify my portfolio and then re-evaluate after like half a year. There is always the question of what happens if a project defaults and issues arise or how many projects they’re capable of bringing out to keep cash drag to a minimum. Definitely they seem to have hit the ground running and are doing well enough that I’d dare to give them more importance in my P2P portfolio.

*’If you feel like starting to invest with them, then using the promotion code EGU05422 will cash back 0,5% of your invested amount to both yourself and me as the person who referred you for the first year of investing.