Crowd-lending portfolio review for April 2021

Website changes

I spent a lot of time working on the website’s backend. Indeed, it had gotten hopelessly outdated and very hard to maintain. Many reviews were updated and upgraded in order to support the new tool. I still have to rewrite five older reviews as well as some documentation, which shouldn’t take too long.

In addition, I’ve rewritten most of the documentation. It is now grouped under The complete guide to investing in loans.

Noteworthy news from the crowdlending world

Once again, not much happened since the previous portfolio review. Interest rates overall seem to be in a downtrend, which is quite usual in Spring.

CrowdEstate

CrowdEstate seems to learn from its failures. Indeed, they will stop publishing business loans.

In addition, the platform announced that they would soon offer real-estate loans from two additional countries : Portugal & Slovakia

ReInvest24

ReInvest24 is 3 years old ! In order to celebrate this milestone, the platforms offers a cashback until May, 12th.

In addition they announced that the platform’s share capital got increased from €2,500 to €125,000.

Robocash

There are several noteworthy changes at Robocash.

  • First, interest rates have slightly decreased again. They now range from 10.5% (for loans shorter than one month) to 12.5% (for loans longer than one year).
  • Since April 14th, all loans can now be sold on secondary market. Using the secondary market is free, and loans are always sold at face value.
  • Robocash’s financial report for 2020 is available. Profit for 2020 was a record twenty four million dollars, a 50% increase from 2019 !

Individual platform performance​​

Performance for most platforms was very stable in early 2021. Returns for real-estate platforms kept on climbing and thus got closer to their theoretical value, while there’s been very little change for most peer-to-peer platforms.

Lendermarket

14.04%

With a performance above 14%, my Lendermarket is among the top performers in my loans portfolio.

Robocash

12.87%

The XIRR for my Robocash portfolio has increased slightly; it still stands a bit below 13%. That’s an excellent performance for such a reliable platform.

Mintos

12.77%

Interest rates have decreased a lot for the loan originators I use (Wowwo, Delfin Group and Iute). I’ve decided to resume investing in Mogo again – which actually won’t make much of a difference as I already had many remaining loans from this originator -.

In spite of having around 95% of my Mintos portfolio invested in loans from these four originators, the average interest rate is close to 12%. It’s an excellent figure, especially when considering the reliability of these lending groups !

Performance-wise, the XIRR is nearly the same as last month’s.

PeerBerry

11.52%

The returns for my PeerBerry portfolio are stable, hovering around 11.5%

Crowdestor

11.48%

Very few repayments hit my Crowdestor account in April. As a result, the performance kept on going down.

ViaInvest

10.77%

Cash drags still occur regularly at ViaInvest.

The platform announced a new business loan in Philippines. Annual interest rate is 12% (paid monthly), with an extra 2% bonus at maturity. Please note that unlike consumer loans, it isn’t covered by a buyback guarantee.

Returns for this portfolio are getting comfortable close to 11%, which is great given the platform’s financial stability. If only they spend some money to improve the website…

Moncera

10.32%

Higher interest rates are scarce at Moncera. As a result, I often end up investing in 10% loans.

The resulting performance is honorable, still reaching double-digits.

Twino

9.84%

My Twino portfolio requires very little maintenance. In spite of the rather low amount of available loans, I didn’t witness any cash drag.

The performance is finally getting close to 10%, which is an honorable result.

Afranga

9.79%

My Afranga portfolio is doing well after only 2 months. Indeed, the performance is getting close to 10%.

In addition to the reliability of the loan originator StikCredit, I appreciate the large loans supply, high interest rates and great website.

BulkEstate

8.56%

I previously indicated that my XIRR has crossed the 10% mark. It was a mistake, caused by the erroneous handling of partial reimbursements by the platform. The actual return is around 8.5% – actually slightly down from last month –

Several loans were extended. In addition, one is getting refinanced on CrowdEstate, so it should get reimbursed soon.

EstateGuru

8.12%

Although I happen to read complaints on Telegram about the increasing default rate at EstateGuru, I can’t complain about my own portfolio. 80% of my portfolio is current, and only one loan out of forty has defaulted !

LendSecured

8.09%

After 2 months at LendSecured, the performance is starting to build up.

Although the platform regularly adds new projects, I don’t plan to increase this portfolio’s size yet.

ReInvest24

7.13%

One of my investments at ReInvest24 was exited with a great return – 14.75% -. Another one should be completed soon, as it’s expected to be refinanced on another platform.

The performance of this portfolio has now crossed the 7% mark, and increases steadily.

The review still isn’t ready, as I want to bring older reviews up-to-date first.

CrowdEstate

3.5%

Two projects at CrowdEstate were successfully exited. As planned, I’ve withdrawn the returned capital in order to reinvest it in other platforms.

In addition, at least two other got extended by at least one year.

Performance-wise, this platform is very close to the bottom of my portfolio.

Global portfolio performance

2.84%

I’ve now written-off my Wisefund portfolio, which decreased returns again.

Interestingly, overall performance for my P2P portfolio is 14.40%. On the other hand, XIRR for business and real-estate loans stands at -22%, thanks to the many scams I felt for.

Current allocation

I’ve withdrawn available funds from FinBee and CrowdEstate in order to fund my new HeavyFinance and Esketit portfolios

In addition, I managed to close my BitOfProperty portfolio, as the platform sold the two assets I had invested in. Final XIRR is 6.93%.

New platforms

I funded two new accounts. First is on Esketit, a new platform for consumer loans. The second is my long-overdue HeavyFinance account, which I opened several months ago but never founded.

Esketit

Esketit was founded by loan originator Cream Finance.

This lending company is rated 61/100 on ExploreP2P. That’s the same rating as Mogo, higher than Kviku’s 51 but slightly lower than 65 for Afranga‘s StikCredit.

Interest rates vary depending on the country. They’re currently 13% – 14% in Mexico, 10% – 12% in Czech Republic and 14% in Latvia.

Regarding the website, I’m not a big fan of the design, but overall it’s user-friendly.

KYC was breeze. It’s a rare enough occurrence to be worth noting 🙂

HeavyFinance

It took me many months to actually fund my HeavyFinance because they use Paysera and I really, really hate this bank.

HeavyFinance’s main selling point is the relative safety of the loans. Indeed, they’re all backed by a collateral and have reasonable LTV The LTV (Loan-To-Value ratio) is simply the ratio between the loan amount and the collateral value, expressed as a percent. Smaller values indicate safer loans, where the collateral value greatly exceeds the borrowed amount. LTV values around 50% – 60% are usually regarded as safe. levels around 50% – 60% – sometimes as low as 30% -. A few loans even come with a guarantee from the Agricultural Credit Guarantee Fund of Lithuania.

Interest rates usually range from 10% and 13%, depending on the project and invested amount. Most loans are long-term, with durations around 30%. Fortunately, there’s a secondary market.

The website didn’t exactly blow my mind but it’s usable enough.

1 thought on “Crowd-lending portfolio review for April 2021”

  1. Did you know that you can access HeavyFinance through EvoEstate? Despite the niche asset class it looks like a pretty liquid provider from what I’ve seen there.

    It’s strange to see your NEO Finance returns to be so low – did you go for the riskiest loans that defaulted too frequently perhaps?

    As for RoboCash profitability – it never ceases to amaze me… these guys are literally printing money and seem to have built it to scale!

    Reply

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