Total Funded: 1,542,874 €

Historical return: N/A %*

Total Funded

1,542,874 €

Historical Return

N/A %*

Crowdestor is a marketplace for direct peer-to-peer lending which allows users to invest directly in loans granted on the platform. The loans are to companies in the areas of transport, real estate and startup projects. All loans have collateral backed and/or covered by the Buyback Fund. The platform launched in 2018 and have funded and facilitated capital to 17 projects based in Latvia, Germany, United Kingdom and Russia.

Last updated: March 22, 2019

P2P Business Area:

Founded:

Founders:

Country of Origin:

IPO Status:

Countries of Operation:

Number of Investors:

Business lending

2018

Gunars Udris & Janis Timma

Estonia

Private

Estonia, Latvia, Germany, UK, Russia

1,000+

Crowdestor - Overview

P2P Business Area:
Business lending

Founded:
2018

Founders:
Gunars Udris & Janis Timma

Country of Origin:
Estonia

IPO Status:
Private

Countries of Operation:
Estonia, Latvia, Germany, UK, Russia

Number of investors:
1,000+

Crowdestor - Pros & Cons

Pros

  • High interest rates
  • Buyback Guarantee
  • Only direct investment structure

Cons

  • High risk
  • No secondary market
  • New platform - short track record & few loans

Characteristics of Loans

Interest Rates

12 % - 20 %

Loan Durations

3 - 24 months

Currencies

EURO

Buyback Guarantee

Minimum Investment

0

Direct Investment Structure

Loans on Crowdestor

Crowdestor has a simple and informative single page for every project listed on the platform. What you see below is the first thing you will see when browsing through the available projects. Here Crowdestor displays some basic useful information about the loan: Interest rate, duration of the loan as well as the minimum and maximum funding amount. 

Below, the page is divided into different section that can vary depending on the project. They will provide you with additional information about the project. Often, you will find four sections containing information about the project: ‘Summary’, ‘Loan’, ‘Collateral’ and one project specific question answered. The summary gives a short description about the project, what the money is going to be used for, why and when. The loan information reveals whether the project is covered with a buyback guarantee, how often the interest payments are paid and when the loan is repaid. Below information about the loan, there is a sample of the interest payments on a 1,000 investment in the project.

The collateral section gives an idea of the project and how you as an investor is protected. Besides the Crowdestor buyback guarantee (which will be explained in the section below), the collateral is usually displayed in the project by the end – but in all projects with a buyback guarantee the collateral agent is the “Buyback Guarantee Fund”. No budget or financials are available to look through, but when the platform has to cover the amount if the borrower defaults, it might be more appropriate to look at the financials of the buyback guarantee.

Buyback Guarantee on Crowdestor

To increase the financial security of the lenders on Crowdestor, they have created the “Buyback Guarantee Fund” with an initial investment of 50,000 euro. To keep up with the increasing number of projects to be covered with the guarantee, the platform is devoting a 1-2 % commission of the projects funded to the fund. They expect the fund to reach 100,000 euro by the end of 2019. The first project covered by the guarantee is seeking 100,000 – 250,000, so with the value of the fund as it is today, it is very fragile to bankruptcies. The current value of the fund at any given time will be published on the website. Read more about Buyback Guarantees here.

Direct Investment Structure

There are two different types of investment structures in P2P investing:

  • The direct structure means you are buying a claim against the borrower directly. 
  • The indirect structure means you obtain exposure to a loan by investing in a loan issued by a platform company to the loan originator.

Crowdestor is a traditional lending-based crowdfunding platform and every loan is structured in a direct investment structure. This makes it easier to better evaluate the risks involved since you know that you are lending directly to the company/owner of the property.

Platform Features

Manual Investing

Crowdestor is a new platform and the number of loans is not that impressive, but the website is simple and easy to use. Below is displayed how browsing the investments manually looks like. Scrolling down the page you will be able to see the name of the projects (17 as of writing), interest rate, duration of the loan, name of the project and the location. The interest rate ranges between 12 % and 18 % which is considered very high, but it is not without risk. The funding process is set with a minimum target for the lowest funded amount acceptable for the company to take up the loan and a maximum target of the largest amount the company is interested in borrowing.

Automatic Investing & Secondary Market

Crowdestor does not yet offer automatic investing but is said to be working on renewing their platform to make both auto-invest and a secondary market available in the future, which will also allow lenders to exit the investments early. This is set to be happening sometime in 2019.

Nice to Know for Investors

Registration Process

Registering at Crowdestor is simple and easy to do. Whether you’re an individual investor or investing as a company, creating an account requires just your name, email and a password. After creating the account, you will receive an email with instructions on how to register. The platform complies with KYC (Know Your Customer) and you therefore need to provide an identification document and additional information to be able to withdraw money from the platform. Thus, you can create an account and invest, but you will have to complete the KYC before unlocking withdrawing.

Deposit & Withdrawal Process

Depositing funds to your investor account is done in three steps:

  1. Transfer money to your Crowdestor account from your bank with traditional bank transfer or TransferWise.
  2. Your funds will be available for investment within the day of confirmed arrival (usually 1-3 banking days).
  3. After the funds are received and added to the account, you will receive an e-mail confirmation.

Withdrawing funds is very simple if you are already KYC validated. You just click the “withdraw funds”, enter the desired amount and wait the 1 to 3 business days before the requested amount will land in your account. There is no minimum withdrawal restrictions and no further additional fees or commission for withdrawing the funds – except maybe from your own bank. Remember, depending on their fee structure, your own bank might charge fees for handling the transaction or exchanging currency.

Funding Method

Reporting

The portfolio overview is as with most new platforms not that developed. Crowdestor does not yet provide a cashflow analysis or any useful statistics on your invested projects. The portfolio overview could be improved, and it probably will as more and more projects are launched on the platform.

Crowdestor Tax

Unfortunately, we do not provide tax related consultations and we recommend that you apply to your tax adviser regarding this issue.

Please let us know if you have any questions by writing to info@crowdestor.com

Crowdestor FAQ: “Do i have to pay tax on the interest earned?”

Though the platform do not provide tax consulation, they do give a report in january for the previous year, upon which investors can pay tax in their country.

Support

Crowdestor does not have a chat function on the website but reply on email to whatever questions you might have. They usually answer within a few business days. Even though it is a new platform, they were qualified to answer the questions we had, are straightforward and do not seem to try to avoid any sort of questions.

Crowdestor Competitors

Who Can Invest?

You must be at least 18 years old and You must have a bank account in one of the European Union or EEA banks.

Crowdestor FAQ: “Who can invest in Crowdestor projects?”

Disclosure

Please note that this overview may contain affiliate links. It means that a commission is earned if you decide to invest after using the link – of course without additional costs to you. The information on this site does not constitute investment advice and is solely to give you a simple and easy overview of the platform. Always conduct your own due diligence and consult your financial advisor before making any investment decisions.

* Historical return is not a guarantee of future return. Crowdestor is a new platform and we evaluate that the short track record will give a misleading historical return, which might also be why the platform do not display it on their website crowdestor.com at the day of this article: March 22. 2019

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