Robocash review – 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 shortly after I signed up in August 2017 and it looks a lot more professional now.)
Don’t judge a book by its 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 people’s 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.
All loans on Robocash has buyback guarantee. This means that if a borrower doesn’t make his payment, Robocash will give you your money back including interest earned for the time you held the loan.
In other words: Robocash guarantees that you will not lose money as long as they are profitable.
Are they profitable?
Robocash is well known and one of the trusted companies in the P2P space.
They started issuing payday loans back in 2010 and they were profitable in 2015, 2016, 2017 and they are on track to be profitable in 2018 as well. (See more the statistics on their “About” page).
The sign-up 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 14-15%
- Select what should happen to repayments and interest
- Reinvest full amount
- Reinvest principal amount
I’ve never seen a direct payout option on a P2P site before. That is an interesting feature that makes investing much easier, if you just want to invest once and have your money returned right away.
“Reinvest principal amount” is another great feature, if you want to keep your investment at a certain level and only harvest the interest payouts.
If you’re investing towards financial freedom like me, you’ll want to set it to “Reinvest full amount”.
Before investing into anything it’s vitally important to know your exit options. At some point you want to have your money back.
Robocash operates with two types of loans:
- Installment loan
For Microloans, there is no selling option, no secondary market. Before you freak out, let me remind you that the duration of Microloans 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. Worst case would be a maximum of 51 days (21 day duration +30 days for the buyback guarantee to kick in).
Installment loans have up to 1 year duration. Those can be sold to other investors and you will receive interest according to the number of days you held the loan. Go to “My investments” -> select Type = Installment -> select the loans you want to sell -> Hit the SELL button.
So what is my experience with Robocash?
12 months have passed since I made my first deposit. I have now invested a total of 6.000€ in Robocash and I’m very happy with my investment.
Lately investors have experienced some cash drag due to limited amount of new loans. It’s not critical though, most of my cash is invested on a weekly basis.
It’s very easy to invest with Robocash. Using the website has been an absolute pleasure. Very simple design and yet it does everything it should. No manual work required whatsoever.
Only time can tell if they are able to keep up with the 14% interest rate in the coming years. Other platforms have lowered interest rates to 10-12% which is more or less market standard at the moment. We have not seen this trend on Robocash. When they added Installment loans in the summer of 2018, those were added with a 14.5% interest rate, even higher than the previous rate for short-term loans.
If you’re looking for a hands-off, easy to use investment platform with 12-14% returns, Robocash might be the right choice for you.
Follow my Robocash investment
See more detailed information about my Robocash investment on this page. I update the statistics every month!