Financial Audit - P2P Strategy 2024

Financial Audit Week #2: Status Quo October 2023 (+ P2P Strategy 2024)

In this post I would like to make a financial audit of the current situation. Furthermore I will work on my P2P investing strategy to optimize the outcome. You will see, where I am starting off and of course you will see which P2P platforms will be relevant for me (and why).

Financial Audit from October 2023

Over the last years P2P lending has always been a good alternative for investors. But over the time things changed a bit. Especially with trying to find out about the personal investment strategy I was pretty busy. Maybe you remember my High Income Project, where I invested into four platforms trying to optimize my income from P2P lending.

Looking back it looks like the experiment went quite okay. Robocash is doing good, Bondora as well, Bondster is…well…. I don’t really know and Reinvest24? For me the investment case is not there anymore.

What are my learnings?

First of all I was little bit too much into earning money. Especially Robocash and Bondster are doing great. But to be honest both have their issues with being somehow influenced by the war in the Ukraine. Currently I cannot rate, whether there will be consequenes from it and how they will look like.

Additionally Bondora has been nice and I am still with the platform. But after the ECB and FED raised the interest those 6,75% from Bondora Go and Grow lost a little bit of their attraction. Not because Bondora got bad or something, but the gap between safety and risk changed. But let’s get into the details.

#1 Bondora Go and Grow

Go and Grow is still running. But I mentioned before, that the gap between risk and reward changed. Me as an investor invested with the platform while the official interest was at 0% or even below. You were not able to earn anything from day money in you account.

Meanwhile the official interest is back at 3,5% to 4,0%. So investors can put their money into their day money account and earn 4,0% pretty easy and without any risk (as long as you stay below the 100k). Therefore the gap shrinked from 0% to 6,75% to 4,0% to 6,75% in the case of Bondora. 2,75% to take the risk of losing my money – sorry, but this does not look attractiv to me.

If you are interested in Bondora, check out my Bondora Go and Grow Review here!

#2 Bondster

The P2P platform from Prague has always been a good alternative to Mintos in my eyes. The team is great and they are exploring the P2P world quite good. Personally I think the behavior with their loan originator Kviku Finance is not like I want to be treated. Currently the parts with Kviku are delayed and blocked in my portfolio.

Beside that I was quite happy with the platform. Due to the situation I will stay invested, but not invested more with them.

#3 Income Marketplace

The platform is developing and I really enjoy being part of it. As their size still increases but is not comparable to the big ones my portfolio always has times of cashdrag. That is quite normal and nothing to worry about. Looking at my goal the heavy investment case is not valid at the moment.

I will stay invested here and increase my investment, but I will not focus on the platform.

#4 Mintos

To be honest Mintos and I have never been friends over the last years. I really appreciate, what the team is doing. Also my talks with Martins and members of the teams were nice. This year in June I had the chance to learn about their plans to make P2P loans investable with bonds at the finfellas event in Riga.

For some reason – and I cannot really name them – Mintos is not the P2P platform I want to be alinged with heavily. Therefore I will of course stay invested. As I adjusted to auto-invest some months ago my portfolio is doing okay, but I will not invest more here.

#5 Iuvo, Moncera, Monefit

Currently all of them are small investments in my portfolio. With Iuvo I took the wrong day to invest as my whole portfolio is in recovery. Moncera and Monefit are running good so far, but underlying the same case as Bondora Go and Grow is. The interest rate is not really huge compared to what investors might get at the day money account of their bank.

In case of Iuvo and Monefit I will dig a little bit deeper, as they are offering One Click Solutions, but as long as the current situation is valid and no one is raising the interest, the risk and reward correlation is not attractive to me.

#6 Reinvest24

Well, there is a lot around this platform since quite a while. First their vision was to expand and Reinvest24 teamed up with Kirsan. But after a short period they split up again. Meanwhile their investments on Moldova are influence by the war in the Ukraine. The communication is okay, BUT there are not the solutions I would like to see as an investors.

Therefore I decided to reduce the investment here. I am currently trying to seel my claims on the secondary markets, which worked out for 25% of my portfolio there. The rest – to be honest – is invested in cases which are already late and overdue. This is probably the reason why nobody wants the buy my shares 🙂 That is the game and I will stay with it. First there is no other option but second the Reinvest24 team is working on solutions.

#7 Robocash

I really like the platform Robocash. Over the last year there have been several changes with it. They are still located in Croatia, still working with loans from Kazachstan and still earning good money for their investors. The share of overdue loans is officially also very small.

Which makes me a little bit more carefully is the fact, that the P2P platform split up from their russian company. They are still working toghether as far as I know, but wanted to divide into two companies. From an investors point of view the platform is attractive, but after the changed the loyalty program there is no pressure for me to invest more.

I will stay on the sideline here, maybe invest a bit from time to time and check, how the platform is developing.

#8 Twino & viainvest & Debitum

Usually I also have to aggregate Mintos within this block, but I wanted to explain a bit more about Mintos. Therefore I split them up. With Twino, viainvest and Debitum I am very pleased. In case of Debitum the interest rate is not really high, but it is somewhere below 10% in my portfolio, which makes the investment case legit. Additionally they are offering buisness loans, which makes it an important part of my portfolio.

Twino reinforced after their struggles with the russian loans and viainvest – well, it is something I procrastiante to work on for months now. I am really into those three and will stay invested with each and everyone of them.

Finding my P2P strategy 2024

As I already mentioned in my last blogpost I want to increase the share of my P2P part in my overall portfolio. But I want a stable and well diversified P2P portfolio, wherefore I have to adjust the focus.

Do you know the P2P Platform Rating Premium* from Lars? It is a easy to use and understand Google Sheet, where he is updating all of the platforms (and for some including the loan originators). Depending on several criterias the platforms are earning points e.g. for being regulated, offering a financial statement and so on.

*By the way: By using my link I will receive a small provision in case you are ordering the service. This does not influence the price you pay in anyway.

So, I was looking at the sheets since it existed. For my future focus I will take it into consideration and adjust my P2P strategy. Here we go!

Consumer Lending Loans

Looking at the tableau Mintos is leading is. As I already mentioned before I do not want to invest there heavily, which makes Twino as the number two my personal #1. The platform is regulated, has a quite charming new management and showed they can handle struggle.

Furthermore and currently on place #8 there is viainvest. They are also regulated, doing a good job and probably offering the highest interest of the regulated platforms in Latvia.

Both platforms are mainly dealing with consumer loans. This makes them perfect aligned to my P2P strategy. Over the next weeks I will give you more insights on them also I already invest with them for years – but have never written about them.

As a backup here I choosed Income Marketplace and Mintos. I will increase the investments there slightly and small.

Business Loans

Talking about business loans there is one P2P platform, which should come into your mind at first: Debitum! This year I had the chance to meet the team and be part of a meeting. I was great to talk with Henrijs and Toms about the platform and their plans in the future.

Also here I am invested for quite a while, which you can read here about. I will update the tutorial over the next weeks as there is quite a lot what changed since mid of 2021.

Agricultural Loans

Something I do not have in my portfolio are agricultural loans. Back in the days I was thinking about investing with the shady platform envestio, Crowdestor and so on. Meanwhile some of them are still existing, but I never put a dime in it and was quite happy, when they went off.

With Lande and Heavy Finance there are two P2P platforms offering exactly those type of loans. Looking again at the rating they are ranked #12 and #13 overall. Also in June I had the chance to talk to Nikita from Lande and visit their headquarter. Additionally Lande offered a trip to one of their farmers during the finfellas event and additionally present a farmer on stage, who was talking about the cooperation with Lande.

This made me think. And I decided to drop my prejudices about the sector and start investing again.

Real Estate & Construction Loans

In my blogpost I wrote about Reinvest24. I am also investor of Bulkestate, where I personally doubt that I will ever see some money again. So my real estate experiences are not really engaging and something I should be proud of.

But real estate is something pretty important (just like agricultural) and something I cannot miss in my portfolio. This is why i decided to change the platforms.

In the rating there is EstateGuru ranked #3, but currently not my favourite. They got some problems, which they are solving in a very professional way. But for me, just like Mintos, the platform is too big.

I choosed to invest with Profitus and InRento. Both are ranked #5 and #6 in the current ranking. Espcially with InRento there is the challenge of a 500 EUR minimum invest. I will figure out how I am able to work with that.

Conclusion about the Status Quo & Strategy

Well, now you know what is going around in my head. The idea of my P2P strategy is quite developed. Therefore my main task during November is to set up a plan of how to invest and diversify amongst those platforms.

I will present my model to you in the beginning of December.

So what is my conclusion? Let’s call it a “kick off”. I made my mistakes over the last months and years, personally but also financially. But I (hopefully) learned something from them which now influenced my new start. I am pretty happy with what I figured out and I am looking forward to my first earnings.

That’s for today – see you again next week with the next third of my portfolio. I will shortly introduce to you a strategy of how to invest with distributing ETF’s.

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