Fast Invest Review

Introduction

Fast Invest is a peer to peer lending platform allowing to invest in consumer loans across the European countries Denmark, Spain, Iceland, Russia and Poland. All the loans have BuyBack guarantee that pays the principal investment and the interests if the borrower defaults to pay after minimum 3 days – maximum 60 days (the industry standard is 60 days). The investment term range from 1 to 18 months. When selecting an investment, generic information are provided such as loan details (e.g. ROI, term, amount) and repayment schedule (principal and interests).

In addition, the platform offers two unique selling propositions:

• A MoneyBack guarantee feature that allows to sell investments to the platform and withdraw the money at any time
• A high principle repayment: Investments generate monthly interests but also a principale repayment (of your invested amount) which happens at a good scale. It means that after 6 months, you can expect to have already received back 20-30% of your invested amount that you can then reinvest.

How it works

• A borrower applies for a loan from a loan originator.
• The loan originator checks the application, performs a risk evaluation and grants the loans if everything was fine.
• A credit institution checks and certifies the loan for investment.
• Fast Invest compliance and credit risk department approve the loan.
• Investors select the loan and the amount they want to invest.
• The borrower makes monthly repayments which are distributed to the different investors based on their shor of the investment loan

Performance

Investments at Fast Invest generate an average ROI of 12.04% with available loans reaching up to 13% of ROI. The interests are pays on a monthly basis and the principal amount is usually amortized multiple times during the investment period.

Safety

Here are the different procedures offered by the platform to make it safer:

• BuyBack guarantee: if a payment of interest is overdue more than 3-60 days, the BuyBack feature is triggered. It then takes 3-60 days for the investor to receive payment of the principal and interests sum.
• Skin in the game: all available loans are 100% pre-funded by the loan originators that are forced to invest at least a 5-20% stake in every single deal to make them accountable
• Moneyback guarantee: investors can sell an investment before the term. The money will be provided to the investor after 1 business day.

Their Auto-invest has a unique feature: you can set-up the end date until when you want your money to be invested. The tool will invest the funds only in the loans that end (including Buyback days) before the set date. It makes sure that on the planned date your money will be in the available funds.

The return rate of in the market average (12% ROI) and the loans come with the above-explained BuyBack guarantee and MoneyBack guarantee which makes a great difference compared to the standard secondary market. So you don’t have to care about the loan term and you can get back your invested cash when you want.

Another good point of this platform is that they are growing internationally, with offices in the UK and Lithuania. The investments that they offer can be made in the following countries: Spain, Poland, Iceland, Russia and Denmark, which allows a good diversification between different regions of Europe and not only in East Europe as many other platforms do. I thus strongly advise you to add Fast Invest to your portfolio.

The downside of this platform is that we don’t have clear visibility and information about some of the loan originators. But the ones that we see on FAST INVEST are offering better Buyback terms here than on other Platforms:

• Kviku offers only 15-day Buyback
• Capital Service offers 60-day buyback with the 7-day Repayment Guarantee
• Ecommerce 2020 is the only lender that provides loans in Iceland and cooperates with P2P investment platforms, so it’s unique opportunity to invest in Iceland.

Repayment Guarantee means that in case the borrower is late by 7 days, the lender will pay the late payment in 7 days.

Below you will find the resulting forecast when investing using Fast Invest compared to investing the same amount in the US stock market (US stock market: 6% average yearly growth in the last 30 years).

By investing €1’000 using Fast Invest for 15 years you might end up with €5’852 (€3’455 more than with the stock market).