Risk of scam when investing in loans In my article regarding borrower’s default, I stated that borrower’s default was the main risk when investing in loans. After many platforms turned out to be scams in early 2020, I’m unfortunately starting to reconsider this statement. Kuetzal and Envestio indeed turned out to be scams in January, … Read more Risk of scam
What are loan originators ? A loan originator (often abbreviated as LO) is a company that lends money to borrowers, before putting to loan for sale through loan marketplaces such as , or . They commonly provide what’s called a buyback guarantee; this means that if the borrower defaults (usually by being more than 30 … Read more How to select the right loan originators
Trust-shattering events In late December 2019 and early January 2020, it turned out that was probably a scam. A few days later, ‘s website became unreachable, and the management team disappeared. These events were a shock for many P2P investors, including me. Indeed, call me naive if you want, but I expected the main risk … Read more Lessons from Kuetzal and Envestio
Process overview This guide will show the process of investing in real-estate or business loans, using as an example. There will be differences from one platform to another, but the investment process will roughly follow the same outline. The following steps displayed before investing at Monethera sum up the entire process : Investors first have … Read more Investing with Monethera : a step-by-step guide
The #1 risk when investing in loans A borrower who doesn’t reimburse the loans is obviously the greatest risk when investing in P2P loans or through real-estate or business crowdfunding. In this article, we’ll examine the possible outcomes, based on real-life situations. Loans covered by a buyback guarantee Most P2P lending platforms offer loans covered … Read more Default risk : what if the borrower doesn’t pay ?
Crowd-lending and peer-to-peer lexicon This lexicon will explain the terms you’ll most commonly encounter when investing in loans. Several definitions are borrowed from external sources, while I wrote other ones. Crowd-lending Crowd-lending is the use of small amounts of capital from a large number of individuals to finance a new business venture (adapted from Investopedia). … Read more Crowd-lending and P2P lending lexicon