My opinion on FinBee
FinBee’s pros & cons
- High interest rates
- Some business loans are secured by a collateral
- Lack of buyback guarantee
- Secondary market isn’t free
FinBee’s loans overview
FinBee provides unsecured loans in Euro. Interest rates vary greatly, currently from 13% to 27%; most loans are rather long, with durations up to 60 months.
While the number of loans available at the same time is lower than for most competitors, liquidity usually isn’t a concern.
Note that there’s a 15% income tax, deducted from the interests you’ll get from the platform. It’s theoretically possible to avoid this, but I didn’t bother.
FinBee doesn’t provide a buyback guarantee. When one loan defaults, it goes through a rather lengthy recovery process.
Overall, this platform seems to handle default much better than Bondora; 56% of the amount of loans defaulted in 2016 got recovered, and 40% from 2017 loans; these figures are expected to grow. It’s also worth noting that the default rate for business loans is very low (1.85%).
Due to the lack of a buyback guarantee, it takes some time to know in which loans you’re comfortable investing in. I wouldn’t recommend FinBee for beginner investors.
FinBee’s Secondary market
FinBee offers the opportunity to resell your loans on a secondary market. Unlike most competitors, use of secondary market isn’t free; indeed, there’s an associated 1% fee.
It’s possible to invest manually through the loans list; however, as with all P2P platform, I strongly advise to use the auto-invest feature in order to get a diversified portfolio.
FinBee’s Auto-invest feature
There are three pre-defined settings, based on the associated risk levels : conservative, balanced and progressive. It’s possible to tweak them further, using filters commonly found. These include :
- Loan type : business or individual
- Loan’s term and amount
- Interest rate
- Borrower’s rating, age and gender
Website’s ease of use
Available languages & translations quality
FinBee‘s website is available in English and Lithuanian. Overall the English translation is very good.
Investors will need to provide more details than for most competitors, but overall the process still feels quick and easy.
Account funding and funds withdrawal
The only way to add add funds to your account is via a SEPA transfer.
Website’s design and ergonomics
FinBee‘s website has a clean design and is easy to navigate.
The dashboard is rather complete. While many data are downloadable as a Excel file, there’s usually no way to customize date ranges or filter data.
Actual performance of my FinBee portfolio
At end end of April 2019, the XIRR for my FinBee portfolio was 12.63%; this is slightly lower than the returns for my Mintos portfolio, and equivalent to those at Iuvo. However, for a long time I used rather conservative settings for my auto-invest. I switch to a more aggressive profile in late 2018, which should result in higher returns.
FinBee’s main competitors
Due to the lack of a buyback guarantee, I would mostly recommend FinBee to intermediate or advanced investors, just like Iuvo. Investors who want to invest in secured loans (and thus have a more predictable performance) are better off investing at Fast Invest or Bondster.
FinBee’s facts and figures
Number of investors12 038
As of March 2019
Who can invest
To invest through FinBee, investors must be at least 18 years old, have a bank account in European Union and have valid personal document.FinBee FAQ
Please note that this review may contain affiliate links. It means that I will earn a commission if you decide to invest after clicking through the link – at no additional cost to you, of course -. Please understand that I have experienced all of these companies, and I recommend them because they are helpful and useful, not because of the commissions I make if you decide to invest through my links.