Lendermarket Review

In this Lendermarket Review, we will take a look at the cashback offer, rates, and loans that are offered in this p2p lending platform. As always, I would like everyone to know that this will be in an independent review.

What Is Lendermarket? 

Lendermarket is a p2p lending platform established in June 2019 and is located in Dublin, Ireland. While it has been only established for a short period of time, it is a sister company of Creditstar Groups AS. It is a consumer financial services company established in 2006. The Group has 12 subsidiaries that issue loans in 8 different countries. If the name “Creditstar” sounds familiar, you are probably a Mintos investor. The company is a loan originator at Mintos as well, but they offer higher rates on Lendermarket. The minimum investment is 10 EUR, and all loans are listed in EUR.

Creditstar has more than 805,000 customers in 8 countries across Europe, including Estonia, Finland, Sweden, Poland, the UK, Czech Republic, Spain, and Denmark.

Taking a look at their 2018 annual report, I have to say I am pretty impressed. They were able to grow both their assets and income while improving their operating margin. 

how lendermarket works

Highlights From Their Financial Statement (31.12.2018-31.12.2017)

  • Total Assets: €91 million up from 66.59 million (36.66% Increase)
  • Loans to Customers: 105.657 from 79.150 (33.49% Increase)
  • Doubtful Receivables: €22.45 million from 17.68 million (36.71% Increase)
  • Interest Income of €24.17 million from 19.60 million (23.35% Increase)
  • Profit for the year: €2.86 million from 2.20 million (30% Increase)
  • Cash: €939,000 up from 404,000 (132.43% Increase)

They were also able to reduce their operating expenses and improve their profit margin as well. As you can see, the numbers are very impressive.

Rates

Lendermarket offers a flat rate of 12% on all loans. Creditstar loans on Mintos are listed with rates between 8.5% and 11% so, if you invest through Lendermarket, you will get a much better rate. I have started to appreciate platforms that offer flat rates like Swaper and ViaInvest, especially with the recent drop in rates on Mintos. At least with these platforms, you know the rate you will get, and that is more dependable long term.

Loans

Creditstar Group subsidiaries provide short-term loans between 50EUR and 5,000EUR to its customers, with repayment terms between five days to six years. Then, these loans are listed on the Lendermarket platform that investors can buy. In the screenshot below, you can see the performance of Creditstar’s loans on Mintos.

Lendermarket Loan Statistics

Loan Liquidity

So far, there are plenty of loans on the platform, and cash drag is not an issue. Loans have a fixed rate of 12%, so investors don’t have to compete for loans with higher rates like on other platforms. 

Auto-Invest

The platform has a simple solution that offers you a way to optimize your investing. You simply set the criteria for your money to be invested, and each time a loan that meets the conditions appears on the loan list, an investment is made automatically, saving you time while at the same time keeping you in full control. You can also stop, cancel, or change your Auto-Invest settings at any time.

Buyback Guarantee

All loans on Lendermarket come with a Buyback Guarantee. The terms of the guarantee are pretty standard and similar to that of many other p2p lending platforms. The loan originator will buy back any loan from the investors that is more than 60 days overdue from their due date. The originator will buyback the loan at the nominal value of the outstanding principal, plus accrued interest income and late payment fees.

Risks

Lendermarket carries more or less the same level of risk as other platforms. Personally, I would say that it is safer than most platforms because of the large Group that guarantees the loans. According to their latest audited financial statement (31.12.2018), they also had 939,000EUR in cash, up from 404,000 from a year ago (31.12.2017). This, on top of the rest of the numbers that we went through earlier, gives me some peace of mind that they will be able to cover their buyback guarantee if things come to that.

Secondary Market

There is no secondary market on the platform, and they don’t have an early exit option either. Once you have confirmed your investment in the loan, the investment cannot be canceled or exited early. You will have to wait until maturity or the buyback guarantee to be activated.

Fees

Investing through Lendermarket is completely free of charge as per usual with p2p lending platform. It does not charge any fees for opening and maintaining an account, depositing or withdrawing funds.

Sign-Up Process

The sign-up process is similar to any p2p lending platform. You can click here (by doing that, you are also eligible to receive a 1% cashback bonus of the Net Deposited Funds during the first 60 days) and go through the steps on the registration page. At the final step, it will ask you to upload identification documents, like a Passport, Government ID card, or a Residence Permit. This is a mandatory step, and you will not be able to finish the registration process until you complete it.

Lendermarket Review – Conclusion

Lendermarket offers a great platform to invest your funds with competitive rates. Also, the originators are backed by Creditstar Group AS, which is a large and financially stable company for more than 10 years. It has also demonstrated the ability to both originate loans and pay its own bonds on time for a long period of time.

Lendermarket Sign Up Bonus

You will receive a bonus of 1% of the Net Deposited Funds during the first 60 days after you are successfully validated. Net Amount Deposited is the amount of money deposited minus the amount of money withdrawn.

If you would like to start investing in Lendermarket, I would appreciate it if you could use my referral link.

If you would like to add something about Lendermarket, please leave your comments below.

Until Next Time,
Peter

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