TFGcrowd allows investors to lend money to businesses; interest rates for these loans vary from 8% to 17%. Many of them are protected by a buyback guarantee.
My opinion on TFGcrowd
The great interest rates and solid buyback guarantee on many loans seem to make TFGcrowd a great choice to diversify your portfolio. However, as the platform doesn’t have much track record yet, I encourage investors to be patient and grow their portfolio slowly.
TFGcrowd’s pros & cons
- A large variety of loans
- Financed business located throughout Europe
- A solid buyback guarantee is provided
- Minimal investment per project is € 100
Overview of TFGcrowd’s loans
In term of interest rates, the loans at TFGcrowd are rather competitive; interest rates can be as high as 17%, which is very high given most loans come with a buyback guarantee.
One very appreciable aspect of TFGcrowd’s projects is that they’re very diversified, both geographically and in term of industries. Indeed, financed firms are located in UK, Germany, Latvia. Apart from the usual real-estate developments, funded businesses include :
- Indoor karting race track
- Food delivery company
- Nutritional supplements manufacturer
- Logistics company
- SPA & beauty salon
- Co-working space
Most loans reimburse interests monthly, which is great for investors looking for a regular cash-flow.
There are several new investment opportunities every month. The financed amounts vary greatly, from as little as € 20,000 to as much as € 400,000.
A subset of TFGcrowd‘s loans is covered by a buyback guarantee. It covers both interests and principal, and triggers after a 30 days delay. For loans that don’t come with such a guarantee, the presence of a collateral increase the investment’s safety; however, recovery delays may be long.
There’s unfortunately no secondary market at TFGcrowd; it also isn’t possible to resell loans to the platform. This lack of early exit is the platform’s main weakness.
As only a few projects are simultaneously available, manual investing is comfortable.
The project are described in great details; although they lack a risk rating like CrowdEstate provides, I find the description very complete and it makes for a pleasant read.
Currently, TFGcrowd doesn’t allow automatic investing; it has to be done manually.
Website’s ease of use
TFGcrowd’s registration process
While registering was as often quick and easy, the KYC (Know Your Customer) procedure gave me some trouble. Indeed, the website kept rejecting the scan of my passport (the same I use for all crowdlending websites). I ended up contacting the support and they validated it manually; it didn’t take long for them to notify me, and their reply was professional.
Account funding and funds withdrawal
Currently, the only way to fund your TFGcrowd account is via a SEPA transfer. After I wired my initial amount, it appeared on my account after 2 days, which is a standard delay.
Website’s design and ergonomics
I find the design of TFGcrowd‘s website rather clean and it’s straightforward to use.
Among the possible improvements, it would be great to have a buyback icon for relevant projects in the projects list.
Available languages & translations quality
The website is only provided in English, and I couldn’t find any typo or awkward phrasing.
There is unfortunately very little reporting available, apart from the transactions list and the projects portfolio.
The FAQ is small and rather concise but useful. In addition, there’s also an overview of the investment process.
It’s possible to get in touch with the TFGcrowd by e-mail, as I did when I had troubles registering.
I contacted them again later with a question regarding the reimbursement schedule (which unfortunately isn’t visible on the website). Once more, their reply was quick and to the point; after my bad experience with Grupeer‘s support, it’s nice to see that other platforms do care about their customers’ inquiries and feedback !
Communication from the platform
For now, the only notifications I received were when new investment opportunities became available. I regret that the platform doesn’t sent a message when funds reach my account.
TFGcrowd’s main competitors
For a detailed comparison of the different real-estate and business crowdlending platforms, check out this article.
TFGcrowd’s facts & figures
As of August 2019
Who can invest at TFGcrowd
Anyone who is at least 18 years old and has a bank account in one of the European Union States or EEZ banks.
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.