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CrowdLords Property Crowdfunding Platform

CrowdLords is a two-sided, residential Buy-to-Let crowdfunding platform that brings together Investors and Landlords. Instead of CrowdLords buying the property, they act as intermediaries between the landlord or developer and investors. Launched in 2014, CrowdLords is registered as a limited company with registration number 08868588 in Hook, United Kingdom.

How does it Work for Landlords?

CrowdLords allow landlords to raise funds for a property investment without the need of going to a bank and take out a buy-to-let mortgage. The landlord relies on crowdfunding to gain the cash. Once you identify the property you wish to invest in, CrowdLords will appraise development and refurbishment issues. The minimum investment amount is £5,000. It’s the landlord’s prerogative to calculate the percentage of the rental income and property capital growth to offer the investors.

CrowdLords will value the property and if satisfied with the project, they’ll list on their website for investors to put in their money. After reaching the target, the money is pooled together into a Special Purpose Vehicle (SPV) which will buy the property. The SPV overseer is an independent director. Both the landlord and investors will have shares in the SPV.

The landlord’s responsibilities include maintenance and running costs. The landlord will receive the money once the independent director has approved the expenses.

How does it Work For Investors?

Before you can commit your money to CrowdLords, you first need to complete a one-off assessment to ensure you understand the risks involved. After approval, you’re free to browse the investments on offer. To invest you’ll need a minimum of £1,000.

How does CrowdLords Investments Work?

Each investment covers a set term, of 1, 3 or 5 years and defined by the landlord. Assuming the property is occupied, the investor benefits from a percentage of the rental income over this period, paid as a quarterly dividend.

At the end of the specified years, the landlord can continue by relisting the property on CrowdLords or sell the property on the open market. The investor will get a portion of the sale if the property has increased in value. If the landlord is a non-performer, the independent director appointed to the SPV can intervene to help resolve any issues.

The Fees

  • Landlords pay a £500 listing fee as well as a ‘success fee’ of 5% of the total amount of investment capital raised.
  • There is a ‘handling fee’ of 1% of all income paid out to shareholders. 10% ‘investment fee’ on the capital gain on the property being sold is also charged, but this is only when the investment was profitable.

Raising Capital

Despite being denied the opportunity to raise money on CrowdCube, CrowdLords is raising capital through private investment and crowdfunding such as Seedrs. According to Seedrs fundraising history, CrowdLords investment obtained so far is:

DATE INVESTMENT OBTAINED

11-Dec-2014 – £150,000.00

14-Jun-2019 – £152,490.00

Whilst in Beta, CrowdLords is offering 80 shares at £5.00 per share. Share price history is as below:

  • £5.00 – 24 June 2019 (Current price)
  • £0.61 – 30 December 2016
  • £0.65 – 22 June 2016
  • £2.50 – 11 December 2014

There is an absence of liquidity in property investments and currently, CrowdLords lacks a formal secondary market. This means you should only invest money you will not need in the short-term. Nonetheless, CrowdLords rates of return are significantly higher than the one’s banks and building societies offer. They’re also relatively unaffected by changes in the stock market.

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Monese Current Account Review

Monese is a financial services provider based in the UK. Established in 2015, Monese provides mobile banking services, streamlined current accounts, and modern finance to both UK and Eurozone residents. The company takes mobile banking a step further by allowing customers to create an account without a U.K address.

U.K residents can add funds to their account and prepaid debit card from 40,000 locations including Post Offices or any Paypoint location. Monese also integrates with your phone’s mobile wallet allowing you to make direct payments from your Monese account through Google Pay or Apple Pay.

Monese Current Account

The Monese current bank account is simple to open even without a perfect credit score or documentation for utility bills. The account offers services similar to a standard bank account. These include budgeting, direct debits, cash at ATMs, receive GBP or Euro bank transfers, debit cards, and much more.

Is Monese Safe?

The FCA under the Electronic Money Regulations 2011 (900010) has authorised Monese Ltd to issue electronic money and payment services. Furthermore, Monese uses best practices to protect your money and secure your personal information. A network of stable European banks helps store all the transfers made to Monese current accounts. In case the company should go bust, customer funds are ring-fenced to protect your money from being reinvested by Monese.

Monese has also developed innovative technologies and processes to protect accounts against unauthorised access. This adheres to the latest standards in financial security. The company is a member of CIFAS and works with major banking services to fight against fraud.

Accessing your Monese account from a single mobile device prevents any possibility of someone gaining control of your account. Monese uses a secure multifactor authentication to verify identities including Touch ID, 3D Secure and Face ID biometric recognition.

How to Transfer Money with Monese

Monese works like digital-only accounts via the app which has multiple tabs for different aspects of the account including:

  • Debit card – The Monese debit card performs the same functions like a traditional debit card. It’s also prepaid and contactless for extra convenience.
  • UK bank transfers – You can pay your bills or send money to friends and family with Monese bank transfers which use the Faster Payments Service that takes between 2 to 4 hours.
  • Foreign transfers – You can transfer money abroad into eight different currencies using the “interbank rate”. The transfer takes between 2 to 4 working days.
  • Foreign transfer from Eurozone accounts – If you transfer money with a Euro account through a SEPA payment, the payee will receive the money by the next working day.
  • Pay contacts – You can make payments or transfer money to friends and family straight from your phone’s contact list.
  • Standing orders – You can set up a standing order to make routine payments for specific amounts, dates or payee via a managed in-app.

Monese is a great option for digital nomads and travelers looking to open an account quickly in a different country. You can access fee-free card payments and ATM withdrawals abroad which is impossible with traditional bank accounts. If you need to deposit cash in your account regularly, Monese deposits are free making it a better option over other UK challenger banks such as Monzo and Starling.

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What You Need To Know About Cred Crypto Loans

Former PayPal financial technology veterans are the founders of Cred, a decentralised global lending platform that provides open access to credit anytime and anywhere. Cred is also a global company with branches in San Francisco Singapore, Munich, Sydney and Shanghai.

Cred boasts over $300 million in crypto-backed lending capital. This is four times larger than other major lending crypto platforms. The company aims to harness blockchain technology to enable users to enjoy low-cost credit products.

Another feather in its cap is that the company is a founding member of the UP Alliance. Along with Brave, Uphold and Blockchain, UP Alliance launched the Universal Dollar to help decentralised ledger technology achieve mainstream adoption.

Cred Crypto Loan

Some of the largest investors in crypto and tech such as 500 Startups, Arrington XRP Capital, Blocktower, FBG Capital, and Binance Labs are the main backers’ of Cred. Cred developed LBA utility token to access Cred platform services which include crypto-to-crypto lending.

The Cred LBA token is available in more than 180 countries including the UK and US. The token is also available in exchanges such as Bibox, IDEX, Huobi, OKEX, Bilaxy, Gate.io. and kyber.network.

There’re several reasons why you should get crypto-backed loans. Below are six reasons why you should consider crypto-line-of-credit (C-LOC):

1) Credit history – Your creditworthiness with crypto-backed loans is not calculated on your lack of credit history or bankruptcy. It’s based on your crypto collateral.

2) Convenient – Conventional loans take longer to process before the loans can deliver. Cred’s loan application process is fast, simple and easy allowing you to get the crypto line of credit when you need it.

3) Competitive interest rates – Crypto-based lending offers the same access to credit and low-interest rates anywhere in the world. This is unlike unsecured conventional loans which vary according to region.

4) Create a budget – How much can you afford? Financial budgeting tools such as Acorns or Mint can help you manage expenses as well as monitor spending and saving habits. Having a budget will help you determine how much money you need to borrow and if you’ll be able to pay back your Cred loan with ease.

5) Spend and invest – A Cred crypto-based loan allows you to take advantage of your crypto assets without losing out on the potential of your investment. This means you can invest in the future while you spend money today.

6) Financial status – Most conventional financing requires traditional forms of collateral assets such as property and stocks. Crypto-backed lending can be a practical alternative if you lack sufficient collateral to qualify for traditional loans.

Cred is working to build an ecosystem that will change the personal finance industry for consumers around the world. The company plans to achieve this by leveraging blockchain technology and digitisation.

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Investing In Property With Yielders

Several mainstream platforms have recently emerged offering investors small sums of capital opportunities to pool together their investments to gain a property one cannot afford alone. However, such platforms are not workable with sharia law owing to the debt they introduce into their offering. Today there’re several sharia-compliant property products including Yielders that fill this gap.

Yielders’ Islamic Finetech property platform offers investments from as little as £100 This allows a good chunk of the Muslim population to get involved in real estate investment opportunities without the burden of a mortgage or the hassle of being a landlord. In 2017, Yielders was the first Islamic Fintech platform to receive the Financial Conduct Authority (FCA) authorisation. This gave investors more assurance resulting in impressive quarterly growth in investment value with a 260% increase in Q2 and 137% in Q3.

Yielders Investment Opportunities

Yielders’ crowdfunding investment platform puts UK property investment within everyone’s reach. The platform retails pre-funded investments so that the assets can generate pre-defined rental incomes. This means investors can start earning returns within 30 days. Each property investment has a lifespan of 2 to 5 years. The Yielders UK team manages the entire investment process to maximise gains.

The investor benefits in three ways:

i). Zero leverage – Yielders team of legal experts consolidate the assets in an SPV structure.

ii). Prefunded assets – Before offering the property to the public, Yielders property sourcing team first acquires the assets.

iii). Fully integrated – Yielders have streamlined the process of investing in property straight from the comfort of your mobile devices.

How to Fund Your Yielders Account

Once you become an investor, you’ll receive an e-wallet which you can top up via a debit card or bank transfer. Transaction fees include:

  • Initial fee – 2.5 initial fee covers the cost of setting up the asset structures and administration costs of onboarding investors.
  • Management fees – 10% management fee of the gross rental income. This covers the ongoing costs of managing the investment company and its assets.
  • Profit share – 15% profit shared is tied to investor returns. Yielders will receive 15% of the capital appreciation when an asset sells at a profit at the end of the agreed investment period.

Risks to Investors

Investors’ main risks come with conventional crowdfunding which could hold up the investment process. Subsequent risks include the need to put tenants into place, adhere to set terms agreed, and the lack of an exit strategy.

Yielders’ business model mitigates such risks by pre-funding assets. This gives an added layer of security and pre-defined rental agreements. This allows Yielders to minimise voids while maximising returns. All in all, investors are already aware of expected returns before they invest. Furthermore, Yielders has a secondary market which allows assets to be re-listed giving investors complete control of their funds.

Yielders offers a great platform for the Muslim population who lack enough cash or time to buy and own property. Though not as liquid as other investment options, this investment is ideal for people looking to invest for the next 3 to 5 years. In general, Yielders is a robust property investment platform that is beneficial to the UK Islamic market.

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Wirexapp Review

Based in London, Wirex is a digital money solution that combines cryptocurrencies and traditional personal finance services. The company aims to encourage the adoption of digital currencies by providing an easy to use and secure global platform. Dmitry Lazarichev and Pavel Matveev established Wirex at the tail end of 2014.

About Wirex

Since its inception, Wirex has had a transaction volume of $2 billion and 1.8 million users. The company headquarters are in London with additional offices in Kiev and Tokyo. Wirex is available in 130 different countries except for the United States of America.

The main aim of Wirex is for everyone around the world to have the ability to access banking services easily via internet access. The solution its fronting has no paperwork included and the company doesn’t take off days nor close for business.

The other goal for Wirex is to eliminate geographical limitations within finance. According to Wirex, everyone should be able to send and receive money to anyone anywhere within seconds.

Wirex Features

Wirex is both an application and an account that allows you to control your digital assets as well as traditional financial assets. Wirex began life as a provider of virtual cards before expanding to its current services. The company provides a personal banking solution that combines traditional banking and cryptocurrencies.

The cloud-based personal banking offers debit cards, mobile banking, and remittances. You can transact GBP, USD, and EUR through debit and credit cards. Buy, store, send, spend and convert Bitcoin and fiat currencies.

Wirex card provides both buying and selling of Bitcoins by accepting transfer via bank linking accounts. The card offers many blockchain opportunities which translate to cheaper and hassle-free services.

Wirex Visa Payment Card

The contactless Visa card allows you to make payments using your Wirex account. Thanks to the card, you can spend your cryptocurrency the same way as any fiat currency. Wirex markets its visa card as the only Visa in the world that allows you to convert crypto into fiat currency.

Currency Accounts

Wirex currency accounts work the same way as a regular bank account, with a sort code and designated account number. Make and receive deposits and use the linked debit card for regular payments. You can use the service with several clicks thanks to integrated technologies for global payments and peer-to-peer transfers. Manage your account via the free app (available for iOS and Android) or on the desktop.

Cryptocurrency Wallets

Enjoy secure wallets for Bitcoin, Litecoin, XRP and WAVES with support from online and mobile applications. Users can choose from one of six different currency wallets. The secure wallets have cold storage features for cryptocurrency, multi-sig functionality, and traditional currencies.

Bitcoin Exchange

To buy Bitcoin via Wirex, you’ll need to fund your account via credit card, bank transfer, PayPal, altcoins or using other payment methods. Converting your balance into Bitcoin is free. The fully integrated platform allows you to spend your Bitcoin using the payment card as everything is in one place.

Pros

  • Quick verification
  • Has a UK FCA e-money license
  • Contactless Visa Debit cards
  • Browser-based and mobile apps
  • Crypto-friendly business accounts

Cons

  • Maintenance fee of £1 per month
  • Wirex cards are not accepted everywhere
  • Can buy and sell cryptocurrencies cheaper elsewhere
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NEO Finance Peer-To-Peer Lending Platform

The largest peer-to-peer lending platform in Lithuania is NEO Finance. Established in 2015, the platform has consistently increased its granted loans and currently has over 7,800 active investors. As a loan originator, NEO Finance is not a marketplace like Fast Invest, Mintos, or PeerBerry. NEO Finance users have more control of the platform, and there’s more insight into the identities of borrowers. This allows lenders to be more specific on whom to lend.

How it Works

You can apply for a loan on the NEO Finance platform which then does a credit risk evaluation, sets interest rates and searches for lenders to fund the loan. Investing in consumer loans is as little as €10. The average loan amount on the platform is €2,700 and the average loan term is 49 months.

Having an unlimited e-money institution license allows NEO Finance to operate anywhere in the EU. The platform is similar to a banking system where user accounts have their own International Bank Account Number (IBAN) number. Instead of sending money to NEO Finance, you send to a Lithuanian bank account under your user name. This setup gives your investment an extra safety feature.

Regulation and Licenses

Apart from its rapid financial progress, NEO Finance is also at the forefront when it comes to regulation. Other NEO Finance credentials include:

  • Supervised by the Bank of Lithuania
  • The Electronic Money Institution (EMI) license from the Bank of Lithuania
  • Is in the public list of consumer credit providers
  • Is in the public list of P2P lending platform operators

NEO Finance Investment Opportunities

NEO Finance provides consumer loans of up to €15,000. Interest rates are based on the level of investor demand and risk factor. Smaller loans have less stringent payment conditions with lower default rates. Both the loans and borrowers are categorized into three types: A, B, and C. Category C borrowers have higher interest rates as they’re riskier. The interest rate and risk factor are lower for Category A borrowers. The investor can also view different data fields concerning borrowing including assets owned, income, previous debts repaid, other liabilities, and credit score.

Buyback Guarantee

The platform offers a buyback guarantee on their loans, though it’s different from other platforms. The buyback guarantee covers 50 to 80 percent of the face value in case of loan default. But this depends on the credit score of the borrower.

Provision Fund

Same as buyback guarantee, provision fund fully covers you in case the borrower defaults on their loan. But its use is not mandatory. The Provision Fund is akin to having insurance, whereby NEO Finance buys back defaulted loans using their assets as collateral for the repurchased loans

Is NEO Finance Safe?

Authorisation and licenses from several authorities including the EMI license make NEO Finance safe. Furthermore, outstanding loans and the default rate is low, and the company has the potential to recover money from defaulters.

The NEO Finance platform ticks the correct buttons for a robust P2P lending platform. A look at the company’s annual reports offers encouraging signs to potential investors. Though yet to be profitable, NEO Finance has more cash and equivalents than what is necessary for provisions. If you’re looking for a secure platform with a high return for investors, then you should consider NEO Finance.

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ETHLend Review

Incorporated in Estonia, Aave (a Fintech Company) owns and operates ETHLend. Despite its registration in Estonia, the bulk of its operations are in Helsinki, Finland. Created as a decentralized peer-to-peer borrowing and lending platform for cryptocurrency, ETHLend aims to resolve loan defaults and save lenders from losses. It also allows cryptocurrency holders to gain value from their digital assets without having to sell their assets.

How Does ETHLend Work?

ETHLend uses the Ethereum blockchain to enable secure lending with a P2P lending model. The borrower creates an Ethereum based smart contract using the data input such as loan amount, interest rate requested, and duration of the loan. The borrower also adds the address for the cryptocurrency and the amount to use as collateral.

The cryptocurrency put as collateral is transferred to the smart contract, availing the loan to lenders for funding. The collateral is transferred from the smart contract to the lender to cover the loan in case the borrower fails to repay the loan.

After receiving the tokens, the lender can choose to sell them on the open market or keep them. Because the whole process is via smart contract on the Ethereum blockchain, it’s secure. Even ETHLend cannot access the tokens held as collateral in the smart contract. This process creates a superior lending service that doesn’t require a middle-man making it less expensive for borrowers and less risky for lenders.

You can borrow various cryptocurrencies on the ETHLend platform using ETH, BTC, LEND and 100 other ERC-20 tokens as collateral for loans. The required LTV is 50% or 55% when using LEND tokens. Most loans are backed to 200% collateral.

How to Use ETHLend

Apart from unlocking value by providing borrowers with liquidity and unlocking value from held cryptocurrency, you can use the platform to fund ICOs. You can even peg ETHLend to the USD or other fiat currencies to reduce volatility for lenders.

Benefits of ETHLend

Trustless lending platform – The platform prevents anyone from manipulating or changing loans and loan data. You get full transparency about borrowers and lenders. ETHLend is also a global platform that allows access to billions of unbanked world citizens.

Leverage digital assets – Get cash now for your digital assets and use the cash as your digital assets value appreciate. ETHLend allows you to access cash for investments, business startups or emergency cases.

Risks of ETHLend

Poor disclaimers and process – The ETHLend website throw users to the deep end of borrowing or lending without a clear guideline of how the platform operates, fees charged, and other important aspects of the loan process.

Arbitration process – If two parties disagree over something can ETHLend offer an impartial third-party to listen and resolve the dispute? As the platform continues to attract more users, such problems will crop up eventually.

The ETHLend system helps minimize risks to lenders while at the same time maximize benefits to borrowers. This is evident for users unlocking the liquidity of their digital assets. The platform also enables users to continue holding cryptocurrencies and enjoy price appreciation. This takes place while unlocking the current cash value to fund a business or participate in extra investments.

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Review Of EstateGuru Crowdfunding Platform

EstateGuru is a peer-to-peer lending platform based in Estonia that offers investors the opportunity to invest in real estate properties. Established in 2014, EstateGuru has already funded over 680 loans worth over €130 million. With a good lending track record, EstateGuru investors have achieved average returns of over 10% to date. The rapid growth has seen the company become one of the largest P2P investment platforms’ in Continental Europe.

How it Works

For starters, you need to be over 18 years old and have an account within the European Economic Area (EEA) or Switzerland. Note that investments in EstateGuru are only available in Euros hence the need to have a Euro account. If you reside outside Europe, you can open a borderless Tranferwise account and get a bank account in Euros.

There’re are two options when it comes to investing in EstateGuru real estate loans, Manual Invest or Auto Invest. Auto Invest is ideal for investors who use P2P lending as a passive form of investing. You can only invest in loans secured by a mortgage or by a personal guarantee from the borrower. To create an auto-invest profile, you’ll need a minimum of €50 in your account. You can set up your investment amount in a loan term interval, a single loan and the types of loans.

As there is no secondary market in EstateGuru, you can exit your investment when the loan-term ends or when the borrower pays off the loan.

Is Your Money Safe?

The real estate that the properties are tied to backs up all EstateGuru loans. In case the borrower defaults and is unable to repay loans, the property is liquidated and the remaining loans are repaid with the money received from the sale proceeds. In a good economy, such property loans investments are considered safe. Unlike other platforms such as Mintos, there’s no secondary market for loans. This means your money is locked in for the duration of your loan investment.

EstateGuru offers four main types of loans backed by property. They include:

  • Bridge Loan – Backed by the property, a bridge loan is a type of short-term loan. It takes 5 to 14 days to issue such loans, and they’re more expensive than traditional mortgages. Companies tend to choose a bridge loan when in need of quick cash. The repayment period of most bridge loans is between 1 to 18 months, and there’re no repayments until the end of the loan term.
  • Business Loan – EstateGuru business loans are for small businesses that need to increase their operating capital. The real estate property on the platform is the security and the interest rate is paid back on a monthly schedule.
  • Development Loan – Any loan used to develop a real estate property is a development loan. The repayment period ranges from 3 to 4 months.
  • Refinancing Loan – A refinancing loan is a loan made to pay off another loan. You can do this either to secure a better loan deal with lower payments, a lower interest rate, and a shorter loan term or to pay off a loan that is due at a specific date.

Combined with the low default rate, EstateGuru always has available loans to invest in. This means your money will not sit idle in the account due to lack of loans on the platform.

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How To Invest In Property With Brickowner

Founded in January 2017, Brickowner is a newcomer in the UK property crowdfunding market. As an aggregator, Brickowner can combine several investors investing smaller amounts, and pool a substantial amount to invest with an institutional asset manager. In simple terms, Brickowner gathers money from different investors and collaborating with established UK property asset managers, they use the funds to buy the physical property.

How Does Brickowner Work?

For every property Brickowner advertises on its website, there’s a set amount to raise which includes the acquisition cost and any other associated costs such as stamp duty and surveyors fees. After researching each property, the forecasted financials including rental yields estimates and projected returns for the 2 to 3 years it holds the property are given. This will allow you to gauge different properties against each other.

The beauty of crowdfunding is you can buy property without any bank help. Brickowner takes care of your investment once the property is fully funded. The company buys shares in the investment via a property manager and takes care of any investment maintenance including legal paperwork.

If you wish to exit the investment after the minimum period lapses, Brickowner will do it on your behalf. This function is ideal for investors with little understanding of property management. Another good thing about Brickowner is that you can sell your stake in a property before the investment period lapses.

Brickowner Fees

Brickowner charges two fees:

  • 3% Fundraising Fee – Fundraising fee is a one-off fee at the point of investment. It covers the use of Brickowner technology. The fee applies to investors buying newly listed properties as well as those that buy shares on the secondary market.
  • 1% annual management fee – This a monthly fee paid from the SPV.

Is it Safe to Invest in Brickowner?

In general, no crowdfunding investment is 100% safe. In Brickowner’s case, they give investors peace of mind by ring-fencing investments for added protection. The Financial Conduct Authority also regulates Brickowner.

By using Single Purpose Vehicle for each property purchase, you cannot lose your investment in case Brickowner goes bankrupt for whatever reason. This is because your investment is in the actual physical property and is separate from the website or other properties Brickowner has bought.

There’s further protection incase Brickowner were to go bust after raising funds but have not yet purchased a property. This is because investors’ money doesn’t go to Brickowner’s bank account but to a solicitor’s ‘ring-fenced’ account.

Pros

One of the main advantages of investing in Brickowner is that small investors get the opportunity to invest in big building projects with forecasted higher returns. Other benefits include:

  • Investments can start with as little as £100
  • Investments are ring-fenced in a separate UK limited company
  • The platform is easy to use for beginners
  • No exit fees when investment term ends
  • No rising interest rates associated with banks or building societies

Cons

  • Your cash is locked in a fixed term and no opportunity to resell your shares
  • Whether an investment is profitable or not, you have to pay the fees.

As the positives far outweigh the negatives, Brickowner seems like a decent platform to invest in. They offer a great option to diversify your investments once you join the bandwagon of property investors.

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Mintos Marketplace Review

Mintos is a Latvian P2P marketplace for investors that links different lending companies with investors and borrowers. According to AltFi Data, it currently leads the continental Europe marketplace with a 38% market share. Launched in 2015, the platform serves over 60 loan originators and more than 146,000 investors from 70 countries. Mintos offers an accessible and transparent option to the traditional banking system. In 2017, Mintos reached profitability with EUR 2.1 million in revenue and EUR 196,000 as net profit.

How it Works

Both retail and institutional investors can invest in fractions of loans from across various loan types and continents. Mintos connects loan originators to the marketplace and offers instant access to investors looking to buy loans

Opportunities for investment include personal unsecured loans, mortgage loans, invoices, secured car loans, and small business loans. Many of the marketplace loans are secured. This means the borrower has to attach an asset with their loan application. In case the borrower defaults, the loan originator can engage to sell the asset and redistribute the money to investors. This lowers any potential loss in case of a default.

Buyback Guarantee

Mintos buyback guarantee is usually with secured loans. This is a promise from the loan originator that they will intervene and refund you back the invested principal plus interest earned. This is inclusive of the 60 overdue days a borrower fails to make repayments. Though this method is not risk-free, it transfers the risk from the borrower to the loan originator.

Campaign Rewards

Mintos introduced campaign rewards in 2018. This allows you to get cashback when you invest in loans from a certain loan originator. In some cases, the loans may even be repurchased if the loan agreements change. In such a scenario, you’ll receive your invested principal plus earned interest which you can withdraw or invest in new cashback loans.

Mintos Auto-Invest

Auto-invest is a Minto tool that automatically completes your investment of choice strategy. Once you choose your investment criteria, Auto-invest will invest in suitable loans on your behalf. Auto-invest is accessible anytime and you can follow your portfolio activity in real-time. The tool is efficient as it saves time spent on investment matters. You can even access newly placed loans in the system before manually-made investments.

Auto-invest has three investment strategies

  • Primary market with a 14% interest rate and buyback guarantee within any duration.
  • Primary market which features a buyback guarantee, 13% interest rate, and a 12 months duration.
  • Secondary market which features loans with buyback guarantee, 14% interest rate and a 60 months duration.

As a new originator, you need to choose and fine-tune your strategy when there’re new campaigns or when interest rates change. Failure to adapt may lead to cash drag when no loans fit your benchmark. If you set your benchmark low, you can even miss on higher-interest loans.

The main advantage of Mintos is the variety of options to diversify your investments. But you must exercise caution as it could also be another fraud. This is partly due to the many loan originators and options making it difficult for new investors to choose the best investments. Despite some doubts, the generous buyback campaigns offer Mintos a trusted P2P platform with a long working history and various diversification options.