Disclaimer: This Lendermarket review is 100% impartial and based on everything I learned. I recommend everyone to do their own due diligence as I am not a finance expert nor a financial advisor.
Last update: 31/3/2021
My Lendermarket Results After 13 Months
Start date: March 2020
Total profit: €24,60
Total deposits: €210
Net annual return: 14.02%
If you register to Lendermarket both of us might receive a commission.
Creditstar operates in 8 countries: Spain, Poland, United Kingdom, Estonia, Finland, Czechia, Denmark, and Sweden. The total of assets is in the orders of 132€ Million and the company has a team of more than 135 people of 34 nationalities.
You can see a presentation from the company or even the financial audits from the Creditstar Group here.
As many other P2P platforms, Lendermarket also offers a buyback guarantee option to the investors, in case an investment goes south.
We all know by now that this guarantee may disappear in a blink of an eye, for example in the midst of a pandemic (like the Corona virus pandemic – which it happened at the time I wrote this review).
Nonetheless, the worse part of this pandemic passed, and unlike other platforms like Grupeer or FastInvest, Lendermarket continued their operations as normal, i.e., payments and withdrawals. A good test to pass!
All of the loans are issued by the previously mentioned Creditstar Group. The loans may differ from short-term (<= 1 month) up to mid-term (<= 1 year) loans.
It is good to remember that all loans come from low-risk countries, i.e., it should be more unlikely for a loan to go default, even though it may obviously happen.
One of the features that I’d like to see implemented in Lendermarket is the introduction of a secondary market. I won’t invest big sums of money in a platform which doesn’t give me the chance to withdraw my money in case of an emergency.
Of course that I’d be possible to get it back, but I’d have to wait for the loans too reach the maturity date – or wait even longer is the loans goes default and the buyback is activated (which means more days waiting).
My Investment Strategy
At the current moment I’m looking for loans with interest rates above 14% as with the corona virus pandemic, demand raised. I don’t care for the remaining term for now as long as the borrowers pay on time.
I may change to short term loans in the future if I see that the percentage of loans paid is higher than in mid-term loans. More activated buybacks means less interest received. That’s not the goal.
Verdict Lendermarket Review
Lendermarket is definitely one of the crowdlending platforms which I will keep paying close attention throughout time. It’s strong relations with Creditstar Group make me feel confident about its future.
There are still some improvements that I’d like to see being made in the platform such as the introduction of a secondary market. This is a must-have for me before I invest further into Lendermarket.
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My Portfolio & Other Reviews
See my peer-to-peer portfolio page if you want to find out more about my portfolio performance.
Besides my Lendermarket review, you can also read about: