Lendermarket review

Table of contents

Lendermarket's loans list

Lendermarket's overview

Lendermarket allows to invest in short-term consumer loans yielding around 14% annually; they’re secured by a buyback guarantee.

My opinion on Lendermarket

Thanks to a great financial performance, seemingly reliable loan originators and a simple but effective website, I used to rate Lendermarket four stars. Unfortunately, the lack of a serious audit as well as CreditStar’s apparent disdain towards peer-to-peer investors lead me to reduce this rating slightly.

Detailed ratings

Actual performance

After one year on the platform, the performance of my Lendermarket portfolio is now very close to its theoretical value.

Loans liquidity

Although all loans come from a reduced set of originators, there are many of them.

Reporting

The reporting is very simple but effective given the simplicity of the offer.

Transparency & reliability

I appreciate the reliability and financial solidity of the loan originators – although the lack of a serious audit is concerning -. More detailed information could also be provided regarding the platform itself.

Website ergonomics

Lendermarket’s website sets the bar very high in term of ergonomics and ease of use.

Lendermarket's pros & cons

Pros

  • Reliable loan originators
  • High interest rates
  • Extremely user-friendly interface

Cons

  • No secondary market
  • Very little information is disclosed about Lendermarket
  • CreditStar financial reports aren't audited by a reputable firm

Loans characteristics

Loans durations

Short-term : less than one month

Medium-term : one month to one year

Long-term : more than one year

Loans kinds

Individual

Minimal investment

€10

Buyback guarantee

Buyback guarantee available

Currencies

EUR – Euro

Overview of Lendermarket's loans

All loans on Lendermarket are in Euro and lend interests monthly.

Initially, the interest rate was a uniform 12% for a duration of one month or less.

However, in March 2020, the platform increased the interest rate to a very interesting 14%. This was probably a consequence of the lower demand from investors caused by the coronavirus. Later that year, they even started listing loans from Poland and Spain with 16.6% interest rates !

As of May 2021, interest rates currently range from 12% to 15.1%. It’s more than most competitors. Indeed, only Afranga currently offers higher interest rates (16.8% for Bulgarian loans).

It’s however worth noting that interest rates seem to be correlated with the duration. As a result, loans with the highest interest rates are very long-term – three years or more -. Similarly, loans yielding 14% usually have a 6 months term, while short-term loans will only yield 12%.

When the platform started operating, borrowers lived either in Spain – a country which is highly impacted by the Covid-19 – or in Poland. Loans from other countries were introduced in April 2020; these include Czech Republic, Finland, Estonia, Sweden and Denmark.

Lendermarket's loans list

The minimal investment is €10, a very standard amount for P2P loans.

Loans volume

Lendermarket only provides partial data regarding the loans volume or their investors’ base. In Q3 2020, the total value of loans funded was close to thirteen million euros. In comparison, Robocash issued loans worth more than two hundred million dollars between Q1 and Q3 2020.

Buyback guarantee

The delay for the buyback guarantee A buyback guarantee is a guarantee provided by the platform or a loan originator. If repayment of a loan is delayed by more than a given delay (usually 30 or 60 days), the platform or loan originator will buy back the loan. The guarantee may cover only part of the capital, or in a much more interesting case, both the capital and accrued interests. As the conditions vary from one platform to another, it’s very important to check this point. is 60 days, which is a bit longer than for most competitors. The buyback guarantee covers both principal and accrued interests.

Platform’s transparency and reliability

Overall, I appreciate the reliability of CreditStar group, which provides all loans on the platform. On the other hand, I regret the lack of information about Lendermarket.

Lendermarket’s background and team

Lendermarket was started by originator CreditStar in order to fund its loans portfolio. It’s similar to Moncera (which is backed by Placet Group), Kviku‘s P2P platform, StikCredit’s Afranga or Cream Finance’s Esketit

It looks like large originators now start their own platforms instead of using marketplaces such Mintos or Bondster.

Although it provides a lot of information about CreditStar, Lendermarket‘s main weakness is the lack of information regarding the platform itself.

  • Unlike most other crowdlending platforms, Lendermarket”s website doesn”t introduce its team.
  • The platform also doesn”t have a LinkedIn page (however, a few employees or ex-employees have profiles there).
  • The exact relationship between Lendermarket and CreditStar isn”t disclosed. However, in an interview with ExploreP2P, their business manager explained that Lendermarket and Creditstar Group are sister companies, both belonging to the same ultimate beneficial owner [founder Aaron Sosaar].
  • Finally, no reason is provided for the incorporation in Ireland. Indeed, employees are actually based in Estonia. According to P2P Empire, the platform shares the same office as Lendermarket.

Loans descriptions

Unlike most other P2P platforms, only very basic data is provided about the borrower.

Loan detail at Lendermarket
Loan detail at Lendermarket

However, it’s now a big deal, as P2P loans are rather standard.

Loan originators reliability

All loan originators at Lendermarket (one per country) are subsidiaries of Creditstar Group. This large lending group also provides a group guarantee. This means that even if a loan originator defaults, the parent company will cover the liabilities.

Although Creditstar Group is overall regarded as financially solid, it seemed to suffer a lack of liquidity in late 2020. In addition, the communication towards P2P investors could be much improved.

Let’s start with the positive aspects. First, Creditstar is usually highly rated. This loan originator also issues loan on Mintos – although the volume there is rather reduced now that they mostly appear at Lendermarket -. Mintos risk score varies depending on the country : it’s 7 (out of 10) for Estonia, Czech Republic and Finland, and only 5 for Spain and Poland. These poorer ratings are mostly caused by the low performance of the loans portfolio in countries heavily hit by the Covid-19. CreditStar is also rated 72 out of 100 on Explore P2P’s ratings for Mintos originators.

Lendermarket does a good job at providing information about Creditstar. Indeed, both a company presentation and the latest annual report are available for download on the website. However, there’s no detailed financial data for each country, as only consolidated figures for the whole group are available.

CreditStar has been profitable since its inception. Even after the first Covid-19 wave, the company reported a profit of more than one million euros for the first semester of 2020.

In December 2020, the group also successfully completed a bond issuance for a total of twenty million euros. Because of the large amount required to invest in bonds, only financial institutions or high net worth individuals invest in them. The fact that these financially savvy people and firms trust Creditstar gives it a lot of credibility.

On the negative side, blogger Kristaps Mors pointed out that CreditStar’s annual financial reports were actually audited by a second-rate firm. Worse, the auditor actually lost its license in December 2019 !

In addition, in December 2020, Mintos investors saw a very large increase of the pending payments owed by Creditstar. Although the situation went back to normal in January 2021, this caused some legitimate worry among investors. Worse, the request for a Q&A session with Credit Star was declined by the firm. This disdain towards individual investors is obviously a bad move for the group, and several of them stopped investing in Creditstar loans, either through Lendermarket or Mintos. It’s noteworthy that pending payments didn’t affect Lendermarket investors, as their accounts get credited immediately when the loans gets reimbursed.

In May 2021, Lendermarket investors were invited to a webinar hosted by Credit Star. Investors could submit questions ahead of time; that’s a great improvement in terms of communication. One can only hope that the webinar will have some noteworthy content, especially regarding the audit.

Overall, I still trust CreditStar, but without a proper audit of their 2020 result I’m likely to reconsider my views.

Reporting & statistics availability

I regret that there’s virtually no information available about Lendermarket‘s loan book. The platform doesn’t even display basic information such as the total loans volume or the number of investors.

However, even prospective investors can view the available loans on the website.

Track record

As Lendermarket is a fairly new platform, it’s hard to evaluate its track record. However, CreditStar’s own track record is excellent, so I expect the same to hold true for Lendermarket.

Platform's features

Early exit

Early exit NOT AVAILABLE

Investing methods

Auto-invest

Manual investing

Manual investing

As always, I recommend using the auto-invest feature rather than investing manually. However, it’s still possible and easy to invest manually at Lendermarket, through the “Loans listing” screen. For a long time, only two filters are currently available : interest rate and loan term. However, since February 2021, it’s also possible to filter by country, which was a long-standing request from investors.

Auto-invest

Like basically everything on Lendermarket‘s website, the screen for auto-invest is very well designed. As a result, configuring it is really straightforward – especially because nearly all fields are pre-filled correctly -. Even for beginner investors, setting it up properly will be a will a breeze.

Lendermarket's auto-invest configuration
Lendermarket's auto-invest configuration

One minor improvement I’ve requested to the platform is to add a confirmation before deleting an auto-invest. I clicked by mistake on the “Delete” instead of “Edit” and my auto-invest was gone ! Luckily it was a trivial task to re-create it.

Another possible improvement would be to display the number of loans matching the configuration. This handy feature is actually available at most competing platforms, so it’s surprising that Lendermarket didn’t implement it.

Secondary market

There’s no secondary market on Lendermarket. It wasn’t a concern initially as most loans were short-term. However, now that much longer maturities are available, it can be problematic to be stuck with a loan for such a long time.

Lendermarket versus Mintos

Currently, one can still find CreditStar loans on Mintos. This situation may not last for long, as Creditstar now seems to focus mostly on Lendermarket.

As of January 2020, interests on Lendermarket are usually marginally higher than at Mintos. However, loans from several countries are available exclusively at Lendermarket.

Another difference with Mintos is that there’s no grace period. On Mintos, loans from CreditStar have a 3-days grace period (excepted in Estonia); interests during this time won’t be paid if the borrower is late.

Also, there’s no pending payment at Lendermarket. Indeed, reimbursements are immediately credited back to your investment account.

One advantage of Mintos is the presence of a secondary market, which isn’t available at Lendermarket. Investing in CreditStar loans through Mintos will thus allow them to to sell their loans – although it will incur a fee -.

Overall, it seems more interesting to invest directly through Lendermarket, rather than on Mintos – especially in the current economic climate, where many reimbursements may be delayed ! -. However, because of the lack of a secondary market, investors who may need their money at some point are probably better off investing through Mintos.

Website’s ease of use

Languages

English, German, Spanish

Funding methods

Available languages & translations quality

Lendermarket’s website was initially only available in English. Things have now improved with the availability of two more translations : German and Spanish.

Lendermarket's registration process

The registration process took very little time. Even the KYC KYC (Know Your Customer) checks are procedures used by financial businesses in order to verify the identity of their clients. Most Crowdlending platforms will require a copy of an identification document (identity card, passport, driving licence); an utility bill or bank statement may be necessary as well. process which sometimes drives me crazy was painless, as it uses Veriff. The platform validated my document in one day.

Account funding and funds withdrawal

Currently, it’s only possible to fund your investor’s account via a SEPA transfer. Funds as credited as soon as they’re received, which takes one day for me.

Website’s design and ergonomics

I really appreciate the design and ergonomics of Lendermarket’s website. It’s very readable, easy to navigate, and all features are extremely easy to use. It’s without a doubt one of the most user-friendly P2P lending website I’ve ever reviewed !

Reporting

Lendermarket‘s dashboard is simple and readable; it shows basic statistics about the loans portfolio. I however regret that it displays the average interest rate of the portfolio instead of the actual performance.

In addition, the website also offers the usual reporting features, such as the investments list and account statement. For some reason, although the investments list can be downloaded, it’s not the case for the account statement.

Documentation

The description of the investing process is clear although not extremely detailed. On the other hand, the FAQ A FAQ is simply a compilation of Frequently Asked Questions is very complete.

Communication & support

Communication isn’t exactly Lendermarket‘s forte. Indeed, the platform is unusually quiet.

For example, Lendermarket started a blog which is hosted on Medium. Two posts were published in April. One introduced the blog, and the other was a letter from CreditStar to investors. It then became quiet until November, where a short post introduced the platform’s statistics for 2020.

E-mail communication from the platform is also very limited. It mostly consists of marketing offers, and actual information is very limited.

On a positive note, Lendermarket’s business manager is usually rather active on Lendermarket’s unofficial Telegram group. She’s obviously doing her best to answer investors’ questions, but seems to be limited by the amount of information that the platform and Creditstar are willing to give away.

Notifications from the platform are configurable : it’s possible to choose the frequency of the summaries, be notified of deposits, and choose whether to receive marketing offers.

Official Lendermarket pages on social networks

Support

It’s possible to reach Lendermarket’s support by phone or email. I didn’t have the opportunity to get in touch with them yet.

Actual performance of my Lendermarket portfolio

14,04%

At the end of April 2021, the XIRR for my Lendermarket portfolio was 14,04%.

The performance of this portfolio is very close to my expectations.

Don't hesitate to read my most recent crowdlending portfolio review for detailed platforms performance comparison as well as historical performance.

For a detailed comparison of the different p2p-lending marketplaces, check out this article.

Portfolio creation date

I created my Lendermarket portfolio in November 2019

Lendermarket's main competitors

Lendermarket's facts & figures

Location

Dublin, Ireland

Founding year

2019

Number of investors

2,021

As of May 2021

Who can invest at Lendermarket

We invite both individuals and companies to invest through Lendermarket platform. Individual investors are required to:

  • be at least 18 years old,'
  • have a personal bank account in the European Economic Area or Switzerland
  • and have their identity successfully verified by the Lendermarket team.

Family trusts, partnerships, limited liability companies, and other organizations must have a bank account in the EEA or Switzerland.

Lendermarket's FAQ

In conclusion...

Lendermarket seems to me like an excellent way to invest in CreditStar loans directly, instead of using Mintos. Even beginner investors will be able to invest in quality loans, as part of a diversified portfolio. I only wish Creditstar would get a proper audit of their financial results as well as show more consideration towards individual investors !

Disclosure

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.

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