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Lendermarket Review 2020

Is Lendermarket a great platform for P2P lending? Find out in our Lendermarket review below:

Lendermarket

Minimum investment:

€10

Our rating:

4/5

Average yield:

14.00%

Pros:

  • Buyback Guarantee on all loans
  • Competitive return
  • Auto-invest is available
  • Available in 79 countries

Cons:

  • No secondary market
  • The only loan originator is Creditstar

Review summary:

Lendermarket is a great P2P lending platform for both European and international investors. The platform is a part of Creditstar Group which is a large profitable finance group. It is also from this group the loans on the platform originate from. The return on the platform is excellent and the investments are protected with a Buyback Guarantee. The two biggest drawbacks of the platform are the fact that they are only offering loans from their own group and that there is no secondary market yet.

It’s 100% free to use the platform.

Last updated: May 15, 2020

Introduction to our Lendermarket review

Are you considering investing on Lendermarket? Then read on. We’ve written this Lendermarket.com review to help investors determine if Lendermarket is the right choice for them.

Below you will find an overview of the things that we will discuss more in detail in this Lendermarket review. Simply click on the links to jump directly to the thing you want to know more about.

Learn about this in our Lendermarket review:

What is Lendermarket?

Lendermarket is a Peer-to-Peer lending platform that enables investors from around the world to invest in consumer loans.

Lendermarket loan overview

The loans on the platform are covered by a buyback guarantee which will be explained later (in this section).

Lendermarket is based in Ireland and the platform was launched in 2019. 

The company behind Lendermarket is actually the sister company of the Creditstar Group – which is where the loans on the platform originate from.

Previously, Creditstar has had its loans available for investment on other P2P platforms like Mintos. But with the launch of Lendermarket it seems like the group is seeking more control over the funding process of the loans.

Since the launch of Lendermarket, the platform has experienced a high amount of growth as Creditstar is one of the companies a lot of P2P investors like to invest with. 

Currently, the platform has over 1,000 investors. The investors are earning an average return of around 14%.

With the minimum investment of €10, you can also open an account.

How Lendermarket works

The overall journey of the investments on Lendermarket follows the following process.

First, a borrower applies for a loan at Creditstar. If the loan is accepted, Creditstar will grant the loan to the borrower with the company’s own money. 

Now Creditstar turns to Lendermarket to make the loan available for investment. From here, investors like you can invest in the loans and make a profit.

To make sure that the lending company is still making money, the loans are offered at a lower rate than what the company is actually making on it.

When the loan is fully funded, Creditstar now has more money to issue more loans.

In this way, a win-win situation is made between the lending company and the investors on Lendermarket.

Frequently asked questions:

Peer-to-Peer lending platforms are a great alternative to investments like real estate, stocks, bonds, etc. This is due to the fact that P2P lending can provide further diversification to your overall investment portfolio while offering higher historical returns than traditional investments. In recent years it has not been unusual to see stable returns of over 10% annually.

All investing includes risks. However, Lendermarket has done a lot of effort to make investments on its platform as safe as possible. In our Lendermarket review, you can learn more about the platform safety in this section.

As Lendermarket is a very young company founded in 2019, there is not much financial information available to determine the profitability of the company yet.

  1. Create an account.
  2. Transfer money to your account.
  3. Use auto-invest (easiest) or invest manually (most control).
  4. Log in to your account from time to time to check on your investments.

Key features

We have already taken a look at some of the reasons why Lendermarket has become a popular choice among investors. In the following, we take a closer look at some of the key features that make it great to invest through their platform:

1. Lendermarket Buyback Guarantee

All loans at Lendermarket come with a Buyback Guarantee. 

Essentially, the Lendermarket Buyback Guarantee is a guarantee from the lending company to buy back loans that are more than 60 days overdue.

Here, the investor will be paid both the invested amount of money in the loan as well as the accrued interest in the period.

The Buyback Guarantee is issued by the loan originator and not Lendermarket.

A thing that you have to keep in mind when you hear about buyback guarantees is the fact that the guarantee is only as solid as the one behind it. 

So if the lending company behind the loan starts struggling, the loan might not get bought back. 

2. Lendermarket auto-invest

Like a lot of other platforms, Lendermarket offers an auto-invest feature that makes it possible for you to put your loan investments on autopilot. 

To use their auto-invest strategy, follow this process:

  1. Make sure you have signed up
  2. Log in to your account
  3. Go to “Auto Invest”
  4. Click “Create New”

From here, you can make an auto-invest portfolio that suits your investment goals. You can make set up criteria for this feature to make it invest exactly as you want it to:

Lendermarket auto-invest

We recommend that you set the maximum per single loan low in order to be diversified between many loans. 

Reinvesting is necessary if you want to invest automatically without having to check back all the time.

In order to make sure that you only get loans with the Buyback Guarantee, it is a good idea to select Buyback Guarantee only. This way you will only get loans with the guarantee – even if Lendermarket suddenly introduces loans without it.

If you want to know more about auto-investing, you can find more information on Lendermarket’s website here.

Who can use Lendermarket?

Both individuals and organizations can invest through Lendermarket.

Individuals

If you want to invest as an individual, you must at least meet the following requirements:

  • Being at least 18 years old
  • Being from one of the available countries (see below)
  • Get your identity successfully verified by Lendermarket

If you can live up to these requirements, then you can start investing through the platform.

Organizations

If you run a company, you can also invest via Lendermarket. All you have to do in order to create an account for your business is to select “Company” when signing up.

If you are in doubt about registering as a company, you can just reach out to the support team. You can find the information here.

Available countries

Even though the loans are dealt with in EUR, it is possible to invest via the platform from around the world. The following is a list of all the countries that can invest via Lendermarket:

Albania, Andorra, Argentina, Armenia, Australia, Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, Chile, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Gibraltar, Greece, Greenland, Hong Kong, Hungary, Iceland, India, Indonesia, Isle Of Man, Israel, Italy, Japan, Kazakhstan, Kosovo, Kyrgyzstan, Latvia, Liechtenstein, Lithuania, Luxembourg, Macao, Malaysia, Malta, Mexico, Moldova, Monaco, Montenegro, Netherlands, New Zealand, Norway, Panama, Philippines, Poland, Portugal, Qatar, Romania, Russia, San Marino, Serbia, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, Uruguay, Uzbekistan.

How safe is Lendermarket?

To determine if Lendermarket is safe, we have taken a look at some of the potential upsides and downsides of investing via the platform. 

1. Lendermarket profitability 

As Lendermarket is a very young company founded in 2019, there is not much financial information available to determine the profitability of the company yet.

2. Main risks

In the following, we go through some of the main risks of using Lendermarket that we have considered:

Loan default risk

When you invest in P2P loans, there is a risk that the borrower will not be able to repay his loan. In that case, your investment is usually lost.

At Lendermarket, you can invest in loans with Buyback Guarantee to protect you against the loan default risk. 

When you invest in loans with Buyback Guarantee, the loan originator is required to buy back the loan if it becomes more than 60 days overdue.

A thing you must be aware of with the Buyback Guarantee is that it is dependent on the solvency of the loan originator. So if the loan originator goes bankrupt, the guarantee will be useless.

Loan originators risk

The loan originators also pose a risk to investors. If they are not in control of their finances, have poor management, or the like, then they run the risk of going bankrupt like any other business.

On Lendermarket, you will only currently find one loan originator – namely Creditstar.

The financial situation of the Creditstar Group is great, and the company has been profitable for multiple years in a row. 

According to its annual report, the company made a net profit of €5,792,000.

Lendermarket is very transparent about the financials of Creditstar, and you are able to find much more information about the loan originator on the platform’s website.

Financial turndown risk

As P2P investing is a newer thing in the investment world, it can be difficult to predict how a financial turndown would affect this form of investment. As a starting point, it is, therefore, a really bad idea to invest your entire investment portfolio in P2P investments.

Therefore, many investors also choose to diversify into more traditional forms of investment such as equities, bonds, and traditional real estate.

Since investing is an individual thing, we obviously do not know what will be best for you. But if you put together your investment portfolio, make sure that it reflects your knowledge of the investments in it, as well as your own risk appetite. If in doubt about how to do so, make sure to seek help from a professional investment planner.

Is Lendermarket safe?

As Lendermarket is backed by shareholders of a very profitable finance company, we think that they are financially more safe than most other platforms.

However, factors such as lack of knowledge about how a financial turndown will affect the P2P lending industry is also a risk factor that is worth considering.

Our experience with Lendermarket

Lendermarket offers an excellent investment experience. The platform is overall very easy to use.

We feel in safe hands as the loans are from a great lending company. But at times we have experienced a bit many delayed loans. With that said, there have been no issues with the Buyback Guarantee to buy these back.

The auto-invest feature does its job but is not out of the ordinary.

Lendermarket reviews on Trustpilot

Trustpilot is a great place to learn what other people think of Lendermarket. We have collected some bad and some good Lendermarket reviews from Trustpilot for you to take a closer look at:

1 star Lendermarket review on Trustpilot

5 star Lendermarket review on Trustpilot

Best Lendermarket alternatives

Not sure Lendermarket is the right choice for you? Then there are also some good Lendermarket alternatives to consider. The following are some of our favorites:

Even if you use Lendermarket, it might actually be a good idea to take a closer look at some of the above platforms. By using multiple platforms, you can reduce your platform risk and diversify your portfolio further.

Conclusion of our Lendermarket review

Lendermarket is a terrific choice when it comes to P2P lending. The platform is a part of an experienced and profitable finance company that has existed since 2008.

While they are currently only featuring loans from Creditstar, we hope that they will add a bit more loan originators in the future. 

The platform has the necessary features such as a Buyback Guarantee and an auto-invest feature (which is more or less standard).

Overall Lendermarket is a great platform with great returns and great potential for the future.