P2PIncome | Top P2P Platforms For Beginner Investors
There are various peer-to-peer lending platforms that differ in experience, profits and ease-of-use. Some platforms are designed to be more user-friendly, whereas, others are designed to give users a fully encompassing outlook on their investment prospects.
There are pros and cons to both approaches. Some investors prefer a hands off, simple approach to investing their capital. While others, are more prone to scrutinize, and want to do more research. Platforms need to make the call to decide whether or not they want their users to have a simple experience or one that requires a more advanced approach. In this guide, we will be taking a closer look at different platforms. We will be assessing, which ones are more suitable for seasoned investors, and which ones are more suitable for the new peer-to-peer investors.
Beginner Platforms
Platforms for beginners are the ones with auto-investing tools, a clear interface and an easy to navigate marketplace. Many peer-to-peer lending platforms will have two marketplaces, a primary and secondary. The primary will offer the first loans that enter the market whereas the secondary market will be a marketplace for investors to sell off the loans they no longer want.
Most of these platforms will either have a fully developed buyback guarantee or a strong mortgage backing their loan contracts.
PeerBerry
PeerBerry is the product of a very successful lending organization in Europe, Aventus Group. PeerBerry is a peer-to-peer lending platform that uses a loan originator aggregation system to supply loans to retail investors. This system allows PeerBerry to provide investors an enhanced security protocol, also known as PeerBerry's dual buyback guarantee. PeerBerry is headquartered in Latvia and was founded in 2018. Lenders need to invest at least 10 EUR to enjoy reaping benefits from PeerBerry, and expected yearly returns range from 9 - 12 percent.
PeerBerry's primary lending industry is personal loans, but since their launch they have expanded to offer a wide array of loan types. All loans are backed by PeerBerry's intricate buyback guarantee. PeerBerry's first layer guarantee provides all borrowers their principal, as well as interest on every and any loan that defaults. The second layer of their guarantee ensures that if a loan originator is unable to fulfill their request, then, all the other loan originators on the platform will step in to help, assist, and process the loan request. The rules of PeerBerry's ecosystem serve to protect both the borrowers and lenders.Peerberry does not offer complete loan contracts to their investors. The majority of all loan contracts are funded by the loan originators issuing the loans. Lenders only have the option to acquire a small minority of the total loan pool. Which means the majority of the loan is serviced and managed by the loan originator, as the investors are only taking a cut. This ensures the platform is working in the best interest of the retail investors and loan originators. PeerBerry would be a great option for beginner investors due to their easy to use interface, security protocols and highly customizable auto-investing tool.
Swaper
Swaper was founded in 2018 originally by a lending organization in Europe named Wandoo Finance. Since then, the ownership of Swaper has been transferred to a private owner by the name of Marina Tjulinova. Swaper is essentially a simple, auto-investing solution where investors can yield high returns from a small minimum investment of 10 EUR. Investors are guaranteed a 14% return on their investment. There is no ability to manually invest on Swaper, it is all done through their algorithms. If you invest over 5000 EUR then you will see an increase of 2% in revenue bringing the yearly return to a total of 16%.
Swaper has a very easy-to-use platform with virtually zero fees, with the exception of a 2 percent trading fee on Swaper's secondary market. Swaper has increasingly become a favorite for European investors due to its very high liquidity, returns and ease-of-use. All loans on Swaper are issued by loan originator and parent company Wandoo Finance. All loans are simply short 30 days unsecured consumer loans which are humble in size. The auto-investing tool simply allocates funds whereever it believes necessary. Swaper has a zero percent default rate and a very active secondary market.
The secondary market also helps with investors who are unsatisfied with Swapers auto-investing algorithm. On the secondary market you can pick and choose which loans you would rather be invested with. Generally speaking, we find that investors on Swaper are largely satisfied and pleased with their investing experience. Swaper is a great platform for beginner investors due to the high levels of liquidity and easy auto-investing.
Advanced Platforms
As opposed to platforms for beginners, advanced platforms provide a lot more information on their loan listings, but far less automation. You can expect that each of these platforms will have different investment structures. It is also likely that platforms for experienced investors will not have buyback guarantees. The liability falls more on the investor rather than the platform itself.
October
October, formerly known as Lendix, is a French peer-to-peer investment service that provides business loans to small to medium sized enterprises(SMEs) in Europe. There is a 20 EUR minimum deposit with October and lenders can expect a 3 - 7 percent yearly return. Currently, in Europe more than 50% of the economy is dependent on SME's, such as small shops, butcheries, cafes, restaurants and artifact merchants. October establishes a well of credit into these small businesses so that more businesses have the liquidity to function properly and profitably.
October, is in many ways, a project for the EU. October's purpose is to develop and improve on top of Europe's already existing economical structure. In order to borrower or invest, users on October must undergo extensive checks to ensure that individual themselves know what they are doing. Borrowers are required to submit a large degree of information data, and so are the investors. Security and safety are core values of October's model. October has a zero percent default rate due to always being successful at fund recoveries and the overall management of their ecosystem.
October does not provide a buyback guarantee, but all loan listings come with collateral. October is in good relationships with government organizations, and during the 2020 recession governments were providing October and investors on October credit holidays which gave many borrowers an additional three months, and in some cases more, of not having to pay off their debt. October is for more advanced peer-to-peer lending investors. The platform provides a lot of data for their investors that takes time and dedication to digest.
ReInvest24
In 2019, Reinvest24 was founded in Estonia. This state of the art fintech company provides retail investors the ability do lend out capital in exchange for property equity. The borrowers on Reinvest24 are generally small businesses that deal with hotels, commercial malls, and apartment rentals. Investors then lend out capital to these small organizations, and these organizations provide the lenders with pay outs until the loan contract ends. Investors receive two forms of gains on Reinvest24, rental dividends and capital gains. Reinvest24 has a 100 EUR requirement to invest, and yearly returns range from 14.6 - 16 percent. Despite Reinvest24 being a new player, they have managed their ecosystem successfully and have yet to experience a defaulted loan.
Reinvest24 does not offer a large variety of loans mostly due to the age of their platform and how many investors they have. In our monthly reports, which you may find in our Investment Guide, we have found Reinvest24 to be a great investment choice. Investors on Reinvest24 have historically earned high yields with little to no risk. All the platforms that are offered are hand picked by Reinvest24's team based on their ability to earn attractive profits. Investors benefit from two forms of earnings on Reinvest24, capital gains and rental equity. The equity comes in the form of dividends, whereas capital gains are only realized upon completion of the loan contract.
Reinvest24 has a high minimum entry, with investments beginning at 100 EUR. Reinvest24 does not offer an auto-investing service for their investors. Reinvest24 has a secondary market which is rather active and all transactions of Reinvest24 come with a 1% fee. Reinvest24 is a great platform for more advanced investors because there are no buyback guarantees and the way gains are earned differs from the majority of platforms.
Mintos
The Estonian fintech company, Mintos, is the largest peer-to-peer lending service in Europe by several factors. In Mintos' marketplace users will find, the largest number of loan originators, the largest number of active investors and the largest portfolio average per investor. We can confidently say that Mintos is a European favorite. Generally speaking, investing on Mintos requires a 10 EUR minimum, and yearly returns range from 8 - 12 percent.
Mintos has been in operations since 2015 and has processed over 5 billion euros in loans. In their marketplace, investors can find a large variety of different loan types. Mintos manages the lenders and borrowers within its ecosystem through a series of tools that are highly developed and run smoothly. Mintos offers a large variety in different loan types, as well as pre-designed investing algorithms to help investors who prefer an automated service. Mintos also offers a secondary market where investors can come to buy and sell loans that were initially purchased on the primary market. The upside to this is that the secondary market can provide a lot of liquidity and investors can come to find investments that are sold at a lower or higher cost.
The secondary market is a great asset to factor into your investment strategy. Loans on Mintos can either come with or without collateral. All loans do come with a buyback guarantee that is provided by the loan originator and not Mintos itself. Though, in the case of a default Mintos will implement a fund recovery strategy on behalf of their investors. Loan originators receive a rating on Mintos' marketplace that is based on investor satisfaction, as well as, financial statements, and reporting. Mintos would be a great option for beginner investors due to their friendly interface, security protocols and highly customizable auto-investing tool.
Market Type
Consumer Loans
Average Returns
9 - 12%
Minimum Investment
EUR 10
Signup Bonus
0.5%
Registered users
70,000
Total funds invested
EUR 1.8 Billion
Default rate
7%
Regulating entity
Self-Regulated/EU Compliant
Buyback guarantee
Secondary market
Payment methods
Bank Transfer, Bank Card, TransferWise
Withdrawal methods
Bank Transfer, Bank Card, TransferWise
PeerBerry is an excellent P2P platform to its 100 percent successful fund recovery track record. They offer slightly below market interest rates in exchange for a guarantee users will never lose their funds.
Market Type
Consumer Loans
Average Returns
14 - 16%
Minimum Investment
EUR 10
Signup Bonus
None
Registered users
6000
Total funds invested
EUR 400 Million
Default rate
Undisclosed
Regulating entity
Self-Regulated/EU Compliant
Buyback guarantee
Secondary market
Payment methods
Bank Transfer
Withdrawal methods
Bank Transfer
Swaper only offers auto investing in unsecured consumer loans in Poland and Spain. Swaper is a subsidiary of Wandoo Finance Group, a loan originator that also services the loans on Swaper's platform. Swaper advertises a 14% IRR and premium investors who have invested over 5000 EUR receive an IRR of 16%.
Market Type
Business Loans
Average Returns
3 - 7%
Minimum Investment
EUR 20
Signup Bonus
EUR 20
Registered users
43,000
Total funds invested
EUR 1 Billion
Default rate
3%
Regulating entity
Self-Regulated/EU Compliant
Buyback guarantee
Secondary market
Payment methods
Bank Card, Bank Transfer, TransferWise
Withdrawal methods
Bank Card, Bank Transfer, TransferWise
October specializes in small risk business loans specifically to SME's in Europe. October has a great track record of fund recoveries, a solid mission and a very strong foundation. October's business and risk strategy is worth the time to read.
Market Type
Mortgage Loans
Average Returns
12 - 17%
Minimum Investment
EUR 100
Signup Bonus
EUR 10
Registered users
25,000
Total funds invested
EUR 40 Million
Default rate
0%
Regulating entity
Self-Regulated/EU Compliant
Buyback guarantee
Secondary market
Payment methods
Bank Transfer, Bank Card, TransferWise
Withdrawal methods
Bank Transfer, Bank Card, TransferWise
Reinvest24 is an equity backed real estate rental P2P lender. Though they are a much smaller P2P lending platform in comparison to the top P2P lenders. They deserve a high place on the list because of their attention to detail and successful execution of business goals.
Market Type
Consumer Loans
Average Returns
9 - 12%
Minimum Investment
EUR 10
Signup Bonus
1%
Registered users
500,000
Total funds invested
EUR 8.9 Billion
Default rate
16%
Regulating entity
Financial & Capital Market Comission (Latvia)
Buyback guarantee
Secondary market
Payment methods
PayPal, Bank Transfer, Credit Card, TransferWise
Withdrawal methods
Wire transfer, Credit Card
Mintos is P2P loan originator aggregator whom after years of slow growth exploded and became the number one P2P lending platform in Europe. Find out why in this review. Is Mintos an investment worth considering?
Verdict
We believe that different platforms are catered to different investors. There are some platforms that are more fitting to veteran peer-to-peer investors, and other platforms that are more fitting for beginner peer-to-peer investors. PeerBerry, Swaper and Mintos are all very easy to use platforms, that are simple and require very little work on behalf of the investor.
Reinvest24 and October, on the other hand, require the investor to really know what is going on with their loan contract. This is because there is nothing automated. Instead, there is a lot of reading and research to be expected from the investor who is choosing where to allocate their portfolio funds. Ultimately, you want a platform that can do it all. We feel that PeerBerry does a great job of catering to both beginner and more seasoned investors. They have multiple features that make investing comfortable, pleasurable and a profitable experience.