Best Crowdlending Platforms in Europe 2019

Best Crowdlending Platforms in Europe 2019

We selected the best Crowdlending Platforms to use for your investments. Look at the table below and select the platforms you would like to see more in details (ROI, minimum investment amount, type of investments, investments safety, etc…)
Rank
Platform
Return (ROI)
Minimum investment
BuyBack guarantee
Investment type
More details
1
13.5%
€ 10
Business / Real Estate
2
18%
€ 50
No
Business, Crypto, Restaurant
3
11%
€ 10
Business / Personal
4
12.5%
€ 1
Personal
5
16%
€ 100
No
Real Estate
6
12%
€ 10
Business / Real Estate
7
neo finance logo
12%
€ 10
Consumer
8
kuetzal logo
18%
€ 100
Fintech, Crypto, Transport
9
17%
€ 1
No
Business, Crypto, Restaurant
10
12%
€ 10
Consumer / Business
11
swaper logo
12%
€ 10
Consumer
12
viainvest logo
11%
€ 10
Consumer
13
finbee logo
18%
€ 5
No
Consumer / Business
14
8%
€ 50
No
Real Estate
15
10%
€ 1
No
Business / Personal
16
7%
£ 250
No
Real Estate

Return On Investment (ROI) per platform

Below you will find a figure of the expected yearly returns of our top selection of Crowdlending platforms. (the return rates are based on the real current investments available in 2019 on these platforms, and are NOT based on the marketing numbers advertised on the platforms’ websites)

crowdlending platforms roiFigure: Expected ROI of the main crowdlending platforms in Europe

How crowdlending platforms work

Most of the platforms follow a similar working process represented in the figure below.

how works a crowdlending platform

Figure: Working process of a crowdlending platform

Here are the details and tips about the different steps of the process:

Create your platform account (takes 5 min)

Your account will be registered directly on the external platform. During registration, you will have to provide information such as Name, Email, Phone, ID picture. In addition, in most of the platforms, it is also possible to open Business accounts if you invest through a company.

Deposit money to invest (takes 5 min)

After that, once your account is created, the next step is to send money to load your platform account. Transfers are usually done via bank transfer and in Europe and take usually 2-3 business days to go from your bank account to the platform account. Our advice is to send a small amount the first time (e.g. 10 EUR) to be sure that the transfer work and then to send the real big amount to invest.

Also, investments are mainly done in Euro, so if you are investing from a non-euro country or if you own money in a foreign currency, here is an article on currency exchange at low fees.

Choose a project to invest (time varies)

The platform will propose you a big list of investments. They will usually provide you information such as the return on investment (ROI), investment term/duration, lender information, type of investment, risk, country of investment.

Decide how much to invest/lend (takes 1 min)

Once you have chosen the investment, you just need to select how much money to invest. A good practice is to invest the smallest amount as possible on each investment (usual minimum of 10 EUR) and to diversify your money on many investments. So if you invest 1’000 EUR you will be able to invest in 100 loans of 10 EUR which will help you to spread the risk among different borrowers.

Invest in the project with other investors (takes 1 min)

Finally, validate your selected investment amount. At this point, you will be part of the investment and will have financed a big project (sometimes >2-3 M EUR) in collaboration with thousands of other investors. This is the part that is called Crowdlending (or P2P lending, Peer to Peer lending, Social lending) investment.

When you do an investment, you will usually be bound to borrowed by a contract. The investment platform is just an intermediary. Thus if the website fails and closes, legally you should be able to continue the investments and retrieve your money at the end of the contract term.

Earn monthly interests

When you invest your money in a project, the project description gives you information about interest repayments. Some loans have a very short term of a few days and others will last months. For the short term loans (few days) you will usually get your interests at the full repayment of the loan, while if the investment in on a longer-term (multiple months) you will usually get interests monthly. (Since these investments generated from 12-14% on average, you should be able to get returns on your invested money of 1% per month).