Crowd-lending and P2P-lending platforms features

Two very convenient features

After making up your mind about your investor’s profile, you now have a better idea of the kind of loans you want to invest in. Let’s introduce two useful features the crowd-lending and P2P lending platforms may provide you with.

Auto-invest

At first, it seems convenient to manage your investments manually. As your starting portfolio will probably be small, manually picking up loans matching your preferences won’t be time consuming.

However, as your portfolio grows, it may get harder and harder to work this way. Investing €1000 in small loans (for diversification’s sake [?]) of €10 will start being painful. That’s when auto-invest comes to the rescue.

However, I strongly advise you to check the result of your investment choices regularly. You will also have to update the auto-invest terms when new originators are added, for example. Interests rate also evolve regularly, requiring small tweaks to your auto-invest settings if you want to get the best returns.

One special case is real-estate crowd-lending. Indeed, these investment opportunities often have particular structures; they’re much less standard than P2P loans for individuals. As a result, manual investing will often be your only choice, and they may require more time to study the investment deals.

This icon will be displayed for platforms offering an auto-invest feature

Platforms offering only manual investing will be signaled by this icon

Here are examples of auto-invest setup screens.

RoboCash”s auto-invest
BulkEstate’s auto-invest

Secondary market

This aspect is related to the investment duration. You may be okay with having your funds locked for 1 or 3 months, but what about longer periods ? You may find yourself in dire need of these funds. Some P2P lending companies offer a secondary market [?] option, allowing you to put your investments for sale. You’ll of course have to sell them for a discount, and sometimes pay a small fee, so it should be viewed at a last resort measure !

This icon will indicate the presence of a secondary market on the platform

The hourglass icon will be displayed for platforms that don’t offer a secondary market

Now that we’ve introduced most aspects of crow-lending investing, let’s have a look at how the investing process actually works !

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