Gathering data

Bondora Review

Bondora Statistics

EE
  • Business name: Bondora
  • Legal name: OÜ Bondora Capital
  • Jurisdiction: Estonia
  • Type: P2P platform
  • Average score:
    2.5 / 5
Promised annual return

8.5 %

Sneakypeer scoring

5.7

Transparency

74%

Secondary Info
  • Total invested: €438M
  • Buyback guarantee: No
  • Secondary market: Yes
  • Licensed: Yes
Loan Types
Business loans
Single payment loans
Car loans

Bondora Description

General Information

Bondora, a P2P lending platform based in Estonia, was founded in 2008. To date, more than EUR 438 million has been invested through the platform. Bondora does not provide information about its loan originators. According to Bondora Group AS consolidated annual report 2020, loans are issued by Bondora AS. It is not specified which subsidiaries issue loans in Spain and Finland. There is for sure conflict of interest between the loan originators and the platform’s owners as the platform only sells loans issued by subsidiaries. Bondora does not have an investment brokerage license. 

Board & Team

Bondora does not publish information about its owners and team on their webpage. This fact can lead investors to lower trust. It is important for investors to see who the managing team is because it helps them either to make sound decisions-invest or not invest through the platform.

Financial Analysis

Bondora publishes its consolidated annual reports for each financial year and these reports are audited too. Looking at the financial health of Bondora, it can be said that there are no noticeable liquidity problems. In 2020 the quick ratio was above 1, which indicates that Bondora Capital OÜ would cover its short term debt. Debt to equity ratio has decreased in the last 3 years, reaching 2.26 in 2020. It indicates that the debt proportion has decreased, which is not always a good sign for financial institutions as mostly they rely on debt rather than equity financing. From a financial stand of point, Bondora Capital OÜ works successfully, the chosen business model is profitable for the company, but each investor should estimate if it's profitable for investors themselves.

Platform’s Score and Uniqueness

Bondora offers important features such as autoinvest and secondary market, which makes investing much easier. There is a withdrawal option too. However, there is no buyback guarantee, personal guarantee and collateral to the payment of loans, which make investing riskier. The investments can be diversified and the promised return is up to 9%, which is justified and below market average return. Bondora provides investors with full access to historical loan books that include information about historical loans, default rates, information about a borrower, and more. This information can be used to analyze platforms’ performance and modeling risks.

Conclusion

Bondora is an Estonian P2P lending platform with a promised return of up to 9%. There is a conflict of interest between the loan originators and the platform’s owners, which might be a potential red flag. The platform provides its historical loan books and annual reports that can help investors measure the riskiness of investing through Bondora and trust the platform more. However, there is no information about the board members and team. Bondora provides the necessary features that can attract investors, such as auto-invest and secondary market.