One business financed through TFGcrowd is a cosmetics firm

TFGcrowd review

TFGcrowd’s overview

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 make TFGcrowd a great choice to diversify a speculative loans portfolio. However, as the platform doesn’t have much track record yet, I encourage investors to be patient and grow their portfolio slowly.

Detailed ratings

Performance

The interest rates for the few available projects are rather high.

Loans liquidity

New projects are regularly added, and the amounts financed for real-estate loans are rather large.

Reporting

The reporting is rather basic.

Buyback guarantee

TFGcrowd uses a buyback fund in order to provide a buyback guarantee for most loans; the delay is the usual 60 days.

Website ergonomics

The website is simple to use.

TFGcrowd’s pros & cons

Pros

  • A large variety of loans
  • Financed business located throughout Europe
  • A solid buyback guarantee is provided

Cons

  • Minimal investment per project is € 100

Loans characteristics

Loans duration

Medium-term : one month to one year

Long-term : more than one year

Loans kinds

Business

Real-estate

Minimal investment

€ 100

Buyback guarantee

Buyback guarantee available

Currencies

EUR – Euro

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 :

  • a food delivery company
  • a nutritional supplements manufacturer
  • an indoor karting race track
  • a logistics company
  • a SPA & beauty salon
  • several restaurants
  • a Co-working space
  • a coffee company
  • a playground for kids
Three recent projects at TFGcrowd
Three recent projects at TFGcrowd

Most loans reimburse interests monthly, which is great for investors looking for a regular cash-flow.

In September 2019, TFGcrowd announced that the interests computation would henceforth start the day investments are made (and not only once the project is totally funded). It’s a welcome change, as several competitors such as Crowdestor already computed interests this way.

The minimal investment amount is € 100, which is rather high. This large threshold makes it make it hard to diversify a small portfolio. In addition, the invested sum has to be a multiple of € 10, which makes it hard to re-invest interests.

Loans volume

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. The real-estate projects are rather large, and thus require a long time to be funded. Until now, around 20 projects got successfully funded.

Buyback guarantee

In summer 2019, TFGcrowd announced the creation of a buyback fund. It’s very similar to Crowdestor‘s warranty fund : the initial amount is € 100,000, and it will grow through a commission on new loans. It will cover both principal and accrued interests if a repayment is delayed by more than 60 days.

In late November 2019, the amount held in the fund was slightly below € 120,000.

Compared to the previous situation, I appreciate the fact that there’s an actual cash amount for the buyback guarantee. On the other hand, I regret that there will still be projects excluded from this guarantee; also, the delay was expanded from 30 days to 60 days.

TFGcrowd's buyback fund
TFGcrowd's buyback fund in November 2019

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.

Track record

As of late November 2019, two projects were repaid in full. From what I gathered, there’s been no repayment delay or defaulted loan.

Platform’s features

Early exit

Early exit NOT AVAILABLE

Investing methods

Manual investing

Secondary market

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.

Manual investing at TFGcrowd

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 descriptions very complete and they make for a pleasant read.

TFGcrowd's "Indoor karting race track" project description
TFGcrowd's "Indoor karting race track" project description

Initially, although future projects were displayed, it was not possible to know when they would be available. However, in October 2019, a countdown has been added, allowing investors to fund their account on time.

TFGcrowd's future projects
TFGcrowd's future projects now display a countdown

Auto-invest

Currently, TFGcrowd doesn’t allow automatic investing; it has to be done manually.

Website’s ease of use

Languages

English

Funding methods

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

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.

Reporting

There is unfortunately very little reporting available, apart from the transactions list and the projects portfolio. However, I appreciate the fact that the platform added the reimbursement schedule for each investment, which was initially missing.

Documentation

The FAQ is small and rather concise but useful. In addition, there’s also an overview of the investment process.

Support

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 at that point wasn’t visible on the website yet). 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, or when interests are paid.

Actual performance of my TFGcrowd portfolio

15,45%

At the end of October 2019, the XIRR for my TFGcrowd portfolio was 15,45%.

As I'm still building up this portfolio, the performance is lowered by the fact that I wire a large amount ahead of time. I thus have idle funds until there are enough projects to meet my target size; in a few months, the performance should reach its target of 17%.

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

Portfolio creation date

I created my TFGcrowd portfolio in June 2019.

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

Location

Tallinn, Estonia

Founded in

2016

As of October 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.

TFGcrowd FAQ

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.

4 thoughts on “TFGcrowd review”

  1. I am worried about the minimum withdrawal amount, which is 50 EUR. You’d need several thousand EUR in your portfolio before you can make monthly withdrawals. The minimum investment is 100 EUR, so again it would be difficult to reinvest the monthly interests unless you have a pretty big portfolio.

    Reply

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