Illustration of Wisefund's "Railway forwarding operations" project

Wisefund review

Wisefund’s overview

Wisefund finances European businesses. The loans are usually medium-term (between 4 months and 1 year), and are very speculative; indeed, interest rates for several projects are close to 20%. They’re secured by a 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.
.

My opinion on Wisefund

With only two fully repaid loans, Wisefund currently has only a short track record; in this regard, it’s very similar to TFGcrowd and Monethera. Consequently, I can only recommend it as a complement to more established platforms such as Crowdestor, Envestio, Kuetzal or CrowdEstate.

Detailed ratings

Performance

With many loans yielding 18% or more, Wisefund is definitively one of the most speculative crowdlending platforms.

Loans liquidity

The financed amounts are rather modest, and new projects only seem to come twice a month or so.

Reporting

While rather basic, the statistics are useful.

Buyback guarantee

The buyback guarantee only covers principal, and triggers after a 60 days delay.

Website ergonomics

Although I don’t like the website’s color scheme and find the fonts too small, I have to admit it’s very user-friendly and easy to navigate.

Wisefund’s pros & cons

Pros

  • Very high interest rates
  • Many financed businesses are located in Western Europe
  • Ability to sell back your investments to Wisefund

Cons

  • Projects descriptions could be improved
  • Lack of track record
  • Very high fee for early exit

Loans characteristics

Loans duration

Medium-term : one month to one year

Loans kinds

Business

Minimal investment

€ 10

Buyback guarantee

Buyback guarantee available

Currencies

EUR – Euro

Overview of Wisefund’s loans

All loans are in Euro. The interest rates for all projects are above 16%, a very high level. Although this makes them very speculative (and thus rather risky), their rather short duration (4 months to 12 months) slightly reduces the risk.

Wisefund's projects list
Wisefund's projects list

Until now, the loans had very diverse purposes :

  • Auto spare part purchase for export
  • HoReCa (Hotels/Restaurants/Catering) supplies purchase
  • Electronic devises stock purchase
  • Purchase of used vehicles
  • Rail forwarding operations
  • Flowers exporters
  • Refit of yachts
  • Contract farming – future crop harvest purchase
  • Warehouse automation project
  • Organic fertilizer manufacture

They’re located throughout Europe : two are established in Germany, while the other are in Poland, Switzerland, the Netherlands, Czech Republic, and UK.

All loans yield interests monthly; they’re computed from the day the investor lends the funds. However, unlike Crowdestor, Wisefund won’t pay interests if the loan doesn’t get totally funded. While most projects reached the target amount before the deadline, the second round of the “Purchase of used vehicles” only reached 77% of the target. The deadline got extended for an additional week, and it got totally funded withing this additional delay.

The minimal investment amount is € 10, which is very low; it’s very convenient when it comes to reinvesting interests.

Loans volume

Until now, funded amounts vary between € 60,000 and € 650,000. Only nine different loans were published on the platform; the most recent was in start of October. The total financed amount is above € 2,000,000

Like Envestio or Crowdestor, loans on Wisefund may be published in several tiers; for example, the Purchase of used vehicles project was granted a first loan for € 60,000, then a € 120,000 loan in early September.

Buyback guarantee

The loans are secured by a 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.
. It triggers after a 60 days delay, and covers only the principal.

Several platforms such as Crowdestor or TFGcrowd provide the guarantee through a buyback fund, which is funded through a commission taken on every loan. In Wisefund‘s case, there’s an agreement with an undisclosed third party, so there’s no way to assert how solid the guarantee actually is.

Track record

Thanks to the short loans duration, this young platform already has a short track record. Indeed, two loans were already repaid. In addition, as of November 2019, there’s been no delayed repayment or defaulted loan.

Platform’s features

Early exit

Early exit available

Investing methods

Manual investing

Buyback

Wisefund doesn’t feature a secondary market The secondary market is a marketplace allowing investors to sell loans from their
portfolio to other investors. This is useful if they need to get their money back
before the loan’s maturity.
. However, it’s possible to sell investments back to the platform. Unfortunately, the fee for this early exit option is very high; indeed, for the last projects, it was 10% or 15%. Compared to Envestio‘s fee, this is respectively two and three times higher !

Given that most loans have rather a short duration, it doesn’t make much sense to use this early exit feature.

Manual investing at Wisefund

There’s no auto-invest Auto-invest is a tool provided by most platforms; it allows investors to define the
characteristics of the loans they wants to invest in, and let the system choose the
individual loans based on these criteria. The benefits of using auto-invest is a
gain of time, and a larger diversification of the portfolio.
option. As the number of projects is rather small, it’s not a big deal. Investors are notified of new projects by-email.

The projects descriptions are sometimes rather long, but actually provide little detail about how the loans will be used; overall, they’re much less detailed than at CrowdEstate or Monethera offer.

Project description at Wisefund
Project description at Wisefund

In particular, I found that a recent one – for the flowers exporter – was really botched, filled with a lot of blah-blah; moreover, I spotted a typo (for example ‘repetition’ instead of ‘reputation’) which could have been avoided with further proofreading.

The manual investing process is straightforward; the only improvement I would suggest would be to add a confirmation of the invested amount.

Website’s ease of use

Languages

English

Funding methods

Wisefund’s registration process

It’s very quick to sign up at Wisefund. Only minimal information has to be supplied, and my document for 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.
check was validated in a few hours.

Two small inconveniences have to be noted, though. First, a requirement for the KYC check is to take a picture of yourself holding the ID document; this makes it nearly mandatory to use a laptop or a smartphone. The second one is a small technical glitch : the placeholder for the fields (“First name”, “Last name”…) don’t get cleared as you type the data, so both are displayed. I’ve notified the support and this should get corrected.

Account funding and funds withdrawal

Website’s design and ergonomics

I have a few reservations about the website’s look : indeed, I find the color scheme rather ugly, the icons boring, and the font is too small to my taste. However, this is rather subjective; moreover, I can’t deny that navigating the website is very easy – including on a mobile phone -.

Available languages & translations quality

Wisefund‘s website is only available in English; although the overall quality of the translations is good, the projects descriptions could benefit of some additional proofreading.

Reporting

One basic but too often missing thing I really appreciate is the reimbursement schedule. It puzzles me that so many websites don’t provide it !

Wisefund's reimbursement schedule
Wisefund's reimbursement schedule is not very legible, but it has the virtue of existing

Documentation

The FAQ (Frequently Asked Questions) section of Wisefund‘s website is rather complete. In addition, I really appreciated the insightful How It Works page; it provides a lot of details regarding investments’ safety.

Support

It’s possible to get in touch with the platform by e-mail or phone. I sent an e-mail regarding the sign-up form and got a reply within 2 hours !

Communication from the platform​

By default, Wisefund will send notifications when the platform receives a SEPA transfer, as well as investment confirmations. In addition, new projects will also be announced by e-mail, and investors will also receive a monthly summary. It’s possible to enable or disable notifications.

Reimbursement also trigger notifications; one improvement would be to group them together, instead of sending separate e-mails.

Although they could be grouped in a single email, reimbursement notifications are always a nice sight !
Although they could be grouped in a single email, reimbursement notifications are always a nice sight !

Actual performance of my Wisefund portfolio

18,96%

At the end of November 2019, the XIRR for my Wisefund portfolio was 18,96%.

The performance of my Wisefund portfolio is extremely high; as loans yield interests monthly, it has reached its target performance quickly. Given the very speculative nature of this portfolio, I will increase its size slowly.

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 Wisefund portfolio in August 2019.

Wisefund's main competitors

For a detailed comparison of the different real-estate and business crowdlending platforms, check out this article.

Wisefund's facts & figures

Location

Tallinn, Estonia

Number of investors

1,714

Loans amount financed

€ 2,995,000

As of November 2019

Who can invest at Wisefund

Any person can be a lender on Wisefund as long as one meets the following criteria:

  1. a) be over 18;
  2. b) have valid passport or ID card;
  3. c) have a European Union bank account;
  4. d) you are a resident of a country from the European Union (EU) and European Economic Area (EEA) and Switzerland;

When lenders register on the site, we check their identity according to the highest industry standards, as well as to comply with Anti-money laundering (AML) set by the European Commission. By doing so, we know exactly who is joining our network.

Wisefund 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.

6 thoughts on “Wisefund review”

    • Well, Wisefund and the other similar platforms are really promising indeed… And although I advocate growing portfolios slowly on these recent platforms with little track record, I just can’t help wiring additional funds every time they release a new project. Do as a say, not as I do 😉

      Reply
  1. I’ve been looking at wisefund recently and funded my account looking to invest on the next available project, but, upon looking at the project itself and the extreme lack of information I’m getting cold feet.

    Have you looked into the “Organic fertiliser manufacture” yet? I’ve found a few yellow flags and a lack of important information on the project page.

    Reply
    • Hi Steven,

      Could you elaborate about the yellow flags ? I only had a quick glance at the project’s description as I don’t have funds left for investing at Wisefund. What mostly annoyed me was the reference to hemp, reminding me of the spam about pot stocks that fills mailbox.

      In all honesty, I usually don’t think too much before investing. I tried to do some real due diligence with one of Monethera’s project; I actually contacted the borrower but never got an answer 🙁

      Anyway, if you don’t feel confident about a given project – or even about a platform -, then by all mean stay away from it ! We have such a large choice when it comes to investing that there’s no point in putting our hard-earned money in places that don’t really appeal to us.

      Reply
      • I ended up digging further and found even more alarming stuff :/

        * KRM SERVICE LTD was incorporated on June 21 2019 on the UK and has a single “owner” with no public verifiable history or past experience in the area. Yet they mention “250% sales growth per year after entering UK market only” – Since the company is 4 months old, how can they even state this?

        * How can a €650,000 loan be granted to a 4 month old company with no assets and no collateral provided?

        * “Management of the company has a vast experience in the field, and is open to telling more about the business for those who are interested.” – Yet the only single person they list on the loan agreement is the one who incorporated KRM SERVICE LTD 4 months ago. If they where to be transparent then a full list of company officers would be provided. I reached out to wisefund with some questions and got some vague answers but nothing to ease my mind about (at least) this project.

        * Loan agreement (the one most of us seem to agree without reading) seems to discard any responsibility from wisefund into the loan, since it mentions that the loan is between the lenders (us) and the borrower directly.
        “8.1. The Portal shall be liable only to the Lender and only for the intentional violation of obligations
        explicitly set out in the Agreement, […] The Portal’s liability shall in any case be limited with the direct
        material damage caused to the Lender and shall not exceed 100 euros as a total for all different violations.”
        “8.2. The Portal shall not be obliged to:
        8.2.1. observe or ensure that the Borrower performs contractual obligations or notify the Lender of the
        Borrower’s breach of Agreement or any other circumstance;”

        So they are responsible only for €100 and are not required to see if the borrower is fulfilling his contractual obligations.

        Unfortunately these upcoming crowd-lending/p2p loans companies remind me a lot of the companies I dealt with in my previous investments and 90% of those ended up being a significant or total loss (hence why I tend to look over things with a microscope now).

        I’ve seen similar signs with kuetzal latest project. This is very alarming since most of these platforms haven’t yet reached a point where they have to payback the principal after the loan term is reached. I fear we will see a significant amount of defaults and no funds to cover them. Forget about the supposed protection fund since it won’t be able to cover such a high amount of loan value. I’ll stop rambling now 🙂

        Reply
        • I also contacted Wisefund about KRM and they forwarded me the certificate of incorporation in which you find one name. Furthermore I couldn’t find any other person related to KRM, added to the fact that this individual is relatively young, I would definitely have wished to find more information before investing.

          Reply

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