Robocash – First impressions
I was a little skeptical investing into Robocash initially. They didn’t have much information available on their website and some parts were written in poor English. Furthermore they had this picture of Dmitry-Balakhnin (Chief Brand Officer) to represent the company. I’m sure Dmitry is a great guy but let me be honest to say I was hesitant to trust him with my money. (They updated the website after I signed up and it looks way more professional now.)
Don’t judge a book by it’s cover
However, they do offer a 14% annual return with buyback, which I find quite attractive, so I decided to do some research. As always, I did my homework and spend quite a few hours looking for reviews and other peoples experiences, financial statements etc. I found no obvious red flags and I saw they have participated in fintech conferences and appeared on live interviews as well. Finally, the frequent responses and good answers from the leaders of Robocash on p2pindependentforum convinced me to try them. (Click the link to join the discussion).
The signup process
It’s quite easy to start investing. When you complete the 4 step process you are already earning interest.
Step 1 of 4
Step 2 of 4
Step 3 of 4
Step 4 of 4
Setting up the auto-invest feature
You can set up different portfolios but you really only need one.
- Choose a name for the portfolio
- Set the size of the investment
- Set interest rate to 14%
- Select what should happen to repayments and interest
- Add to balance
I’ve never seen a direct payout option on a P2P site before. That is quite an interesting feature that makes investing much easier, if you just want to invest once and have your money returned right away. If you’re investing towards financial freedom like me, you’ll want to set it to Reinvest.
Before investing into anything it’s vitally important to know your exit options. At some point in time you might want your money back. Unlike most other P2P platforms Robocash offers no secondary market. Which means you can’t sell everything and get your money tomorrow if you want to. Before you freak out, let me remind you that the loan duration on Robocash is 7-21 days and the average duration is 18 days including extensions. That means you’ll be able to have your funds returned pretty fast, just by letting the loans expire and stop the auto invest feature.
Offering only very short term loans, I’m not even missing a secondary market. Worst case would be a maximum of 51 days (21 day duration +30 days for the buyback guarantee to kick in). Isn’t that an acceptable period of time compared to the 14% interest offered?
So how was the first month with Robocash?
I’m glad I invested into Robocash because the usability of the website has been an absolute pleasure. Very simple design and yet it does everything it should. No manual work required whatsoever. Swaper could definitely learn something here, as they offer pretty much the same service and return.
My 1.000€ were invested immediately and auto-investing happens every day.
Robocash might be one of the newer companies in the P2P space but they started issuing payday loans back in 2010. They were profitable in 2015, 2016 and they are on track to be profitable in 2017 as well. (See more the statistics on their “About” page).
Only time can tell if they are able to keep up with the 14% interest rate in the coming years. I have read they chose the 14% interest rate to attract investors but plan to lower it to ~12% at some point in time, which is more or less market standard at the moment.
Based on my very positive first impressions I will definitely add to my investment in the coming months.