Portfolio update April 2017

Peer to peer investments - Financially free

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Funds added

In March I added more funds to my Twino account, doubling my investment on the site. Twino is probably my favorite peer-to-peer investing platform so far, mainly because of these 4 factors:

  • Competitive interest rate.
  • There are no fees for investors.
  • The secondary market is very liquid.
  • Most importantly: The numbers are always correct.

Now, what do I mean by the last bullet? Wouldn’t companies that offer financial services always have a well driven engine that can be trusted? In reality, that is not always the case. However, the Twino engine that runs all the numbers, to make sure you are paid the correct amount on the right time, works flawlessly.

Trust is essential for investors

Twino is like a trustworthy financial supermarket where you shop all the loans you need. When you pay, you know you don’t have to double check the receipt. You get what you expect and the price is always correct. This is essential to building trust between the company and investors.

On Bondora I keep seeing small things that makes me wonder if I can trust their back-end system. DCA fees vary a lot. Sometimes more than 50% are deducted from a repayment. Other times I’m not charged anything for their services. I asked Bondora if they could give a clear explanation on how the collection process works, which they did, but it wasn’t clear at all.

The Mintos engine is very stable, just like Twino. The numbers are always correct and on time. The only disadvantage with Mintos is the 1% fee on secondary market transactions. The interest rate is about 12% on Twino and Mintos at the moment. If it wasn’t because of the 1% fee I would be equally satisfied with the two. If you are looking to start or expand your P2P lending adventure, I can recommend both of them.

Investing for my children

I use Mintos for my children’s savings account, they are not allowed to have an account of their own until they are 18 years old. Who invented a rule like this by the way? I expect the law was created to protect children from fraud but I think it should be possible to create an investment account in their name if their parents authorizes. The products and services offered by the public banks are, to put it mildly, not interesting. Thus, real investing is necessary if I want to build wealth for my kids.

Returns in April

Net interest received for Bondora continues the downward trend. I can’t say that I’m overly satisfied with the progress lately. I’m reinvesting all repayments, both principal and interest. Eventually I would expect the Net Interest received to start rising eventually. I’m still waiting for the turning point…

Bondora returned 253,83€, (-136,73€ less than last month).

Twino returned 98,41€,  (+45,74€ more than last month).
(new funds added)

Mintos returned 11,36€, (+0,07€ more than last month).

This gives me a total of 363,60€, (-90,92€ less than last month)
That equals 12,12% of my first goal, (-3,03% less than last month)

New initiatives

A few weeks ago I started looking into Swaper. After doing a good amount of research I decided to create an account and I just made my first deposit. I expect the money to arrive within a few days. I’m really looking forward to testing out their platform.

Swaper offers a fixed 12% interest rate and all their loans come with a BuyBack guarantee similar to Twino and Mintos. On top of that, “loyal customers” get +2% interest with Swaper, upping the game to a healthy 14% return on investments. “Loyal customers” is quite a diffuse term but, as I understand it, you can become a loyal costumer by providing feedback and sharing your experience with the Swaper development team. Apparently, investing more than 5.000€ should also give you the coveted title.

Remember to subscribe to my blog, to be informed about my Swaper experience. I will update you on the sign-up process and give an honest review already next month.

4 Replies to “Portfolio update April 2017”

  1. Hi, really cool stats you have featured here.

    From interest you’ve received I believe you have invested good chunk of money? About 50,000 EUR?

    Keep up the good work, and keep posting


  2. Hi Reinis,

    Over the past 2 years I have invested 40,257€ in P2P lending, and I’m adding extra funds every month (with few exceptions).

    26,080€ on Bondora
    10,489€ on Twino
    2,688€ on Swaper
    1,000€ on Mintos

    Thank you for commenting!

  3. All platforms have bugs, including Twino. Just recently they had an issue with double transactions: https://www.facebook.com/photo.php?fbid=1709320639078419&set=a.316045285072635.87902.100000014991473&type=3&theater – but it was fixed very fast.

    I have reported bugs for Swaper as well – they had an issue where investors did not get % from older loans. It was fixed in about 2 weeks.

    If you are looking for trust, P2P is not the right place – I’ve heard that Twino fired lot of their employees last Friday and might have problems with cash flow. Possible reason might be additional regulations in Georgia and Denmark, which makes short term lending there not that profitable anymore, and Georgia was their top market. This is something investors would like to know, but no official info yet.

    When Mintos started, they did not provide investors with info, that most of companies in their platform are connected to the same investor who also funded Mintos platform. Someone who had more info and obviously is not happy with their investor, wrote an anonymous post: http://mintos-independent-review.blogspot.com/2016/10/peer-to-peer-lending-platform-mintos.html

    And Swaper? They don’t have any new loans to invest in, and are not even showing info about their owners, managers in website. Not inspiring lot of trust.

    1. Hi Kristaps,

      Thank you very much for your insight.

      Yesterday I also sold a few delayed PG loans on TWINO and to my surprise I didn’t receive any interest for the days I held the loans. I thought PG loans were just like BuyBack loans in this regard. I wrote to support but haven’t heard anything yet. UPDATE: It turns out that TWINO had paid interest for the loans according to the schedule the day before I sold the loans. So no bug here.

      I had a good chat with the Swaper support team today and they claim to release new loans 5-10 times per day on average. However, demand is much higher so a lot of investors experience cash drag. They revealed that a lot more loans will be available starting this summer, when they include investing in their insurance segment?

      I guess our key take away is that we, as investors, have to be very observant at all times. No one seems to be perfect but some are definitely more transparent or have a more simplified process than others.

      One of my primary reasons for creating this blog is also to be able to share experiences with other investors. Hopefully we will be able to find the best companies to invest in. The amount of players in the P2P investment field is growing quite fast and it can be difficult “to distinguish dirt from cinnamon”.

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