Investment tools in P2P Lending

Introduction

Are you interested in the top peer-to-peer lending platforms in Europe in the year 2022? No need to look any further.

Several peer-to-peer lending systems in Europe were analysed and evaluated by our team. This article provides a list of the eight finest peer-to-peer (P2P) platforms that provide investors with the greatest income possible while also ensuring the security of their money.

EstateGuru

When it comes to P2P financing for real estate in Europe, EstateGuru is our top pick since the team does such a great job assessing risk. Therefore, barely 0.1% of EstateGuru's original portfolio has been lost since its debut in 2014. (bad debt).

One of the reasons EstateGuru was able to attract over 150,000 investors is because all of their real estate loans are backed by first-rank mortgages (which cover 95% of all loans). When it comes to peer-to-peer financing systems, EstateGuru is one of the most trusted options. EstateGuru has one of the largest average portfolio sizes, demonstrating that the platform has successfully earned the confidence of its investors.

PeerBerry

PeerBerry is a lending platform. Aventus Group and Gofingo, two major finance companies, are the originators of these loans' 24 lending institutions. Since the average loan period on PeerBerry is shorter than a month, it provides an option for those who are interested in microloan investment.

If you're looking for an alternative to Mintos, PeerBerry is a great choice since it allows you to invest in loan originators who aren't included on Mintos. PeerBerry also boasts a more attractive average interest rate than Mintos has seen in previous months. Finally, PeerBerry offers a repurchase guarantee on all investments and interest for a period of 60 days.

Robocash

In 2022, Robocash will likely be one of the most underappreciated P2P lending services. Investments in the Robocash Group, which has been active in the lending industry since 2013, are available via the P2P lending platform. Even though P2P financing accounts for just around 12% of Robocash's loans, the company uses sustainable lending processes that reduce risk for P2P investors.

Due to the fact that the Robocash Group puts so much emphasis on its lending operations, Robocash is one of the most modest peer-to-peer lending platforms. The Robocash investing platform may be underdeveloped, but it provides satisfactory returns after accounting for risk and meets all of its commitments to its investors.

Income Marketplace 

The Income Marketplace is a cutting-edge P2P lending platform that provides a one-of-a-kind safety net for borrowers and lenders alike.

The platform provides access to short-term loans from Indonesia at an attractive annual percentage rate of 15%. Loans purchased via the Income Marketplace come with a repurchase guarantee and are backed by the loan originator's portfolio. If you are looking for a steady and predictable return from developing economies, the Income Marketplace is the place for you.

Mintos Auto Invest

If you are acquainted with the peer-to-peer (P2P) marketplace Mintos, you have probably heard of the feature known as Mintos Auto Invest. This is a function that enables investors such as yourself to create and automate your Mintos strategy.

Your money is automatically invested based on the parameters you choose in Mintos Auto Invest. The application will make investments in accordance with the preferences you provide and the available loans that meet your requirements.

What is an Auto-investment tool in P2P Lending?

The investing tool known as Auto Invest will automatically place any available cash into any accessible loans in accordance with the Auto Invest plan or strategies that you have selected.

Auto Invest operates using a queuing system, and its logic is based on the FIFO (first in, first out) technique. This means that the first strategies that are added to a queue (after being created or updated) are the ones that are fulfilled first.

The time at which a strategy was either created or last updated is used to decide the order in which it is added to the queue; the queue as a whole is processed many times per day. Please keep in mind that Auto Invest only works if there are enough loans to go around on the platform.

Secondary Market in P2P Lending

When you invest in a peer-to-peer loan via a platform such as Mintos, you are participating in the primary market. However, it isn't the only method that you may put money into a loan. Additionally, there is the secondary market.

When it comes to peer-to-peer lending, secondary markets are marketplaces that enable borrowers and lenders to purchase and sell loans that have already been financed after the payback term has started. It allows lenders to get out of debts early.

Investors may use it to increase their returns by reselling the loans or to begin lending immediately rather than waiting for fresh loans to become available for financing. Additionally, they can avoid the waiting time and gain immediate liquidity..

What about a secondary market approach similar to Mintos?

We don't see any value in investing there in the secondary market as a result of the nature of Mintos' current advances. The return on investment is negative for the vast majority of investors.

Loans traded on the secondary market are subject to repurchase by the original lender at any moment, thus buyers risk losing money if they pay a reduced price for a loan and the original lender repurchases it at the original price.

Conclusion

Peer-to-peer lending might be a suitable alternative if you seek methods to diversify your portfolio investments. P2P lending is not only a desirable alternative asset but also has the potential to provide investors with exceptional returns even in a climate where interest rates are historically low. This is because P2P lending is based on a network of individuals who lend money to one another directly.