Limedot Review 2024
Is Limedot a good pick for P2P lending? Our in-depth Limedot review unveils the pros and cons of the platform so you can learn if it’s a good fit for you. Below is a summary of our Limedot.eu review. For a more detailed discussion of the platform’s strengths and weaknesses, continue reading the full analysis further down the page.
Limedot is an easy-to-use P2P lending platform that offers high returns. The platform seems quite safe with a buyback guarantee on loans and a 10% skin-in-the-game requirement for loan originators. Limedot has all the necessary features such as an auto-investing tool and a secondary market. One of the biggest drawbacks is that Limedot offers limited diversification, given its reliance on a few loan originators. Due to its small size and few loans on the marketplace, the platform is mostly suited for smaller investors at the time. Its short track record and absence of Trustpilot reviews could be a concern for some investors although the platform comes across as safe.
It’s free to use the platform.
Outline of Limedot review:
What is Limedot?
Limedot is a P2P lending platform incorporated in Ireland. It was launched in 2022 by the founder and CEO Marek Krakops who has more than 15 years of experience in FinTech.
Limedot allows investors from Europe to invest in long-term business loans from lending companies in Southeast Asia. These companies include Moneyveo Asia and Alocash from Vietnam.
The loans on Limedot have an average annual return of 13.50% and are secured with a buyback guarantee and collateral.
Since its launch in 2022, Limedot has grown its investor base to over 400 investors.
With a minimum investment of €10, you can start investing at https://limedot.eu/.
Overview & Statistics
|1 – 2 years
|Number of Investors
To invest via Limedot, you need to fulfill two requirements:
- Age: You must be at least 18 years old.
- Residency: You should live in the European Economic Area (EEA), Switzerland, or the United Kingdom.
If you don’t meet these criteria and live outside of this region, you can consider Debitum as an alternative to Limedot which operates internationally.
Advantages of Limedot
- High returns: Limedot offers a high return on its platform of up to 15%. This is a quite high return compared to other P2P platforms.
- No cash drag: There is currently no cash drag on Limedot, which means that you won’t run into problems getting all your funds 100% invested.
- Auto-invest: Limdot has a tool to automate your investments on the platform.
- Secondary market: It is possible to make an early exit using the secondary market on Limedot. However, there are not a lot of loans and investors on the platform, which could mean that it can take some time to sell your loans on the secondary market.
- Low minimum investment: Limedot has a low minimum investment of €10 which is pretty much the industry standard for platforms focused on short-term loans.
- Customer support: Limedot offers reliable customer service. Support is readily available from 9:00-18:00 GMT+3, Monday to Friday, which is convenient for most users.
- User-friendly platform: Limedot’s platform doesn’t have the most modern design, but is very user-friendly and easy to figure out for both experienced P2P investors and beginners.
- Buyback guarantee: Limedot has a 60-day buyback guarantee which means that loan originators will have to buy back the loans that are late for more than 60 days.
- Skin in the game: Loan originators on Limedot are required to have at least 10% skin in the game.
Disadvantages of Limedot
- Unregulated: The platform is not regulated as this is not a requirement for P2P lending platforms in Ireland.
- No Trustpilot rating: Limedot is a new platform and haven’t gotten any Trustpilot reviews yet.
- Short track record: The platform has a short track record which can be a disadvantage because there is less data available to assess the company’s performance, success rate, and risk level.
- Limited diversification: Limedot is only facilitating loans from very few loan originators which means that it can be hard to diversify properly.
- Lag of transparency: While Limedot might have a lot of internal transparency, it could improve by making financial reports for Limedot and loan originators easily available on the website for investors.
- No mobile app: There is currently no mobile app for investing, but you can access Limedot from your browser on your phone.
Overview of Key Features
Here is a breakdown of all the key features of Limedot for you to examine:
1. Limedot Auto-Invest
Limedot offers an auto-invest tool that automates the investment process. This tool is conveniently located in the top navigation bar for easy access. Here’s a step-by-step guide on how to utilize it:
- Decide on your maximum investment
- Select which types of loans you are interested in
- Choose the duration of the investment
- Enter the maximum amount the strategy invests in each loan
- Click “Create”
When setting up your Limedot auto-invest you can continuously see how many loans are matching your criteria. This makes it easy to set up some criteria that work. Make sure to double-check your settings before starting the auto-invest function.
2. Limedot Buyback Guarantee
Limedot provides an added layer of protection to its investors, with a buyback guarantee offered on the loans available on the platform. This safeguard ensures protection for investors if a borrower fails to repay the loan for over two months. The lending company is then obligated to repurchase the loan, including the initial loan amount as well as any accrued interest, providing additional security for investors.
The effectiveness of the buyback guarantee guarantee hinges on the loan originator’s financial capability to fulfill it. In case the originator cannot pay, the guarantee won’t be beneficial for investors. Therefore, it’s crucial not to rely solely on a buyback guarantee.
3. Limedot secondary market
The Limedot secondary market is a feature on Limedot’s platform that facilitates investors to trade loans with each other. This feature is particularly advantageous due to the long-term nature of the business loans on Limedot, where funds would otherwise be locked in for the duration of the loan.
Thus, this secondary market feature brings substantial flexibility to the Limedot platform as it enables investors to modify their portfolios over time. Investors should be aware that selling loans largely depends on the demand generated by other investors coupled with their selected pricing strategy (premium or discount).
The secondary market on Limedot is not as active as other platforms due to the size and user base of the platform. As a result, the selling time for loans could be longer than on other platforms.
When trading loans on Limedot’s secondary market, you can employ the following filters:
Analysis of Limedot Fee Structure
|Free of charge
|Free of charge
|Free of charge
|Free of charge
|Free of charge
It is free to use Limedot as they have no fees for investors. In terms of fees, this keeps them among the most competitive platforms.
But even though Limedot is currently free to use, you should be aware that the platform reserves the right to determine new commission fees from investors in its user agreement. This means that Limedot may introduce fees for investors in the future.
Evaluation of Limedot’s Platform
Limedot has an easy-to-use platform with an intuitive registration process that can be completed very quickly. Customer support is also responsive.
The registration process for Limedot is very easy and intuitive. Here is the step-by-step process you need to follow:
- Go to the website.
- Click “Start Investing”.
- Make an account with your e-mail and password.
- Verify your identity and complete the KYC process.
- Deposit funds to your account.
- Start investing.
The KYC process takes around 2 minutes to complete and you can use various identification documents depending on your country. Your identity is automatically reviewed using Veriff, which is an AI-powered identification software.
Deposits & Withdrawals
Limedot only accepts Euro deposits with SEPA Instant. The funds will typically be in your account within 1-3 business days. This works very similarly to other platforms.
Withdrawals are generally processed very fast on Limedot and you should expect to have your funds within a few days as well. You can only withdraw uninvested funds.
The Limedot platform is both user-friendly and easy to use. You can click the navigation in the top menu bar to navigate the platform.
You can find the possible investments in the primary market on Limedot. These are mainly business loans used for financing for pawnshops and other purposes. There are not a lot of different investments to choose from at the time being. The investments come from the following loan originators:
You can reach out to Limedot by sending them an e-mail at [email protected]. Limedot’s customer support is available from 9:00-18:00 GMT+3, Monday to Friday, which allows for easy communication and assistance during regular business hours.
Our experience with Limedot’s customer support has been excellent. They have proven to be very responsive and helpful in addressing our inquiries.
Risk & Return Assessment
While P2P lending offers the potential for attractive returns, it is not without risks. In this section of our Limedot review, we delve into the risk and return profile of the P2P lending platform.
These risks include but are not limited to:
- Default risk: If borrowers fail to meet their repayment obligations.
- Loan originator risk: If a lending company goes bust.
- Platform risk: If the platform itself goes bankrupt.
It is crucial to understand these risks as they have a direct impact on the potential return on investment. So let’s have a look at the risk and return of Limedot:
Limedot offers a high return of up to 15% with the average return being 13.50%. The return can vary depending on the investment opportunities available on the platform at any given time and market conditions.
When comparing Limedot to similar platforms, the return is quite good, but given Limedot’s short track record, more time is needed to determine whether the high returns can be maintained consistently in the long term, and if they can weather different market conditions.
Getting up to 15% return has its risks. You may not get your money back if the loan isn’t repaid. Let’s see how the platform is trying to protect investors from such risks:
Here are the risk mitigation strategies offered by Limedot:
- Due Diligence: Before a loan originator is accepted on Limedot, the team behind Limedot conducts a thorough due diligence and onboarding process. To assist this process the expertise of the founder and CEO Marek Krakops is utilized.
- Buyback Guarantee: Limedot offers a buyback guarantee on every loan available on the platform. If a borrower defaults on their payments for over 60 days, the loan originators are obligated to buy back the loan. This guarantee includes both the initial loan amount and any accrued interest. It serves as an additional layer of protection for investors, ensuring they get their investment back even if the borrower can’t make timely payments.
Even though Limedot has these risk mitigation strategies in place, investors should be aware that no investment is risk-free.
Limedot is not regulated by a licensing authority as it operates in the Irish jurisdiction where a formal license is not required for P2P lending platforms. Not being regulated is also the case for other popular Irish platforms like Esketit and Lendermarket.
Assessing the profitability of Limedot is challenging due to the lack of historical data. For a comprehensive evaluation, we need data on its revenues, costs, and overall financial performance over time. Adding to that, initial expenses for things like technology, infrastructure, marketing, and legal compliance may exceed income at start-up, delaying profitability.
Is Limedot Safe?
Limedot is a relatively safe platform for peer-to-peer lending, given its risk mitigation strategies which include a due diligence process, a buyback guarantee, and collateral. However, it’s important to note that investing in P2P lending does carry risks, including the risk of defaults, platform risk, and more. While Limedot offers a range of mechanisms designed to protect investors, no investment is without any risks.
It’s also worth noting that Limedot operates in Ireland, where P2P lending platforms aren’t required to have a formal license. This means it’s not regulated by a licensing authority, which could potentially add to the risk.
Potential Red Flags 🚩
At the moment we have not noticed any potential red flags.
Have you noticed anything we have not? Please contact us here.
Best Limedot Alternatives
Not sure Limedot is the right choice for you? There are several other Limedot alternatives to consider that might suit your needs better. Here are some of our favorites:
- Esketit: This platform is also based in Ireland and is focused on short-term loans. It has a strong reputation and a longer track record than Limedot.
- Robocash: Like Limedot, Robocash focuses on loans from Asia, but is specialized in personal loans.
- Debitum: This platform is also focused on business loans but in different countries than Limedot.
You can find more Limedot alternatives in this overview of the best Peer-to-Peer lending platforms.
Limedot Review Summary:
Limedot comes across as a promising P2P lending platform with high returns of up to 15%. With its low minimum investment of €10 and reliable customer support, it emerges as a good option for beginners and seasoned investors alike.
Limedot has a user-friendly platform, despite its slightly outdated design. The platform has all the expected features including a secondary market and an auto-invest feature to ensure a user-friendly investment experience. However, the absence of a mobile app may be inconvenient for some investors.
In terms of safety, the loans on Limedot come with a 60-day buyback guarantee and a requirement of a 10% skin-in-the-game for loan originators. Overall, Limedot does come across as a safe platform.
Due to a short track record and a limited number of loan originators, Limedot may not offer sufficient diversification for risk-averse investors. The platform is also unregulated, which is not uncommon for P2P platforms but it does mean that it lacks certain oversights and protection for investors.
In conclusion, while Limedot offers compelling advantages, potential investors should carefully weigh these against the identified limitations and risks before committing funds. You should always back your decisions up with your research.