Total Funded: € 17,160,000

Historical return: 14.4 %*

Total Funded

€ 17,160,000

Historical Return

14.4 %*

Grupeer is a marketplace for peer-to-peer lending that allows users to invest in loans granted from non-bank financial institutions (Loan Originators). The loan originators have buy-back guarantees in the areas of business loans, real estate and development projects. 

Last updated: February 23. 2019

P2P Business Area:

Founded:

Founder(s):

Country of origin:

IPO Status:

Countries of operation:



Number of investors:

Business lending & property lending

2017

Alla Kisika

Latvia

Private

Latvia, Lithuania, Estonia, Russia, Norway, Poland, Germany, Czech Republic & Belarus


5,330 

Grupeer - Overview

P2P Business Area:
Business lending & property lending

Founded:
2017

Founder:
Alla Kisika

Country of origin:
Latvia

IPO Status:
Private

Countries of operation:
Latvia, Lithuania, Estonia, Russia, Norway, Poland, Germany, Czech Republic & Belarus

Number of investors:
5,330

Pros & Cons

Pros

  • High interest rates
  • Large number of available loans
  • Automatic investing available
  • Only collateral backed loans (business or property)

Cons

  • High risk
  • No secondary market or sell back (early exit)
  • Only indirect investment structure

Characteristics of Loans

Interest Rates

10 % - 15 %

Loan Durations

1 - 24 months

Currencies

EURO

Buy-back Garantee

Minimum Investment

0

Assets as Collateral

Loans on Grupeer

Grupeer has a very comprehensive overview of the different loans with an explanation of the buy-back guarantee on every loan. The most important loan details are available such as loan term, type, date issued and how much of the total amount is open for public investment. Furthermore, the borrower details, investments in the loan and payment schedule are specified. The investment breakdown varies between mortgage loans and business loans. The one displayed below is a business loan.

The borrower details are precise descriptions on the most important things. This specific loan has a short explanation of the company, its operations and in which areas it operates. This information gives the investors an idea and a quick overview of the risks involved. Also, the position of the company in the market and other important information are described.

Buyback Guarantee on Grupeer

The loan originator buyback guarantee on Grupeer is covering almost all loans on the platform. There are two things to be aware of:

  • The buyback guarantee is different between loan originators in terms of days of missed payments before the loan is bought back. This period varies between 15 to 60 days late.
  • As with all buyback guarantees the risk is shifted from the borrower and the collateral to the loan originator and its existence as a company. Therefore, make sure to do your due diligence on the loan originators before investing.

What Happens if a Loan Originator goes Bankrupt?

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.

The loan originator investment structure is indirect at Grupeer. This means that you are lending money to the loan originator and they then lend money to the borrower. In case of loan originator default, you have a claim against the company together with all the other lenders. Grupeer writes the following in a mail to us regarding the process if this unlikely event should happen:

In this improbable scenario (as all our partners get checked by our analysts), the claiming rights will belong to investors, not the Grupeer. However, this doesn’t mean that you will be left alone vis-à-vis the borrower. All investors who have been affected by failing loan originator will be represented as a group by highly qualified lawyers appointed by Grupeer for this matter. The lawyers will communicate with the liquidator of the loan originator company and will insure that the claiming rights of Grupeer investors are satisfied. Grupeer will be managing all issues connected to this process and will ensure investors’ interests are satisfied and handled in the best possible manner and invested amounts are returned in full. – February 6., 2019.

Note that if a loan originator goes bankrupt, it is most likely because they do not have sufficient funds to cover their credit obligations. Therefore, the chance of them returning the invested amounts in full is highly unlikely. Nevertheless, this is the most comprehensive explanation of the process in case of a default we have heard so far from four party platforms (platforms with an indirect investment structure) and it shows that Grupeer accommodate this unlikely event.

Platform Features

Manual Investing

The primary market offers an extensive filtering solution with all necessary information such as interest rate, loan type, term, country and loan originator. The manual investing is further extended to include the options of date issued, date listed, available amount and most important LTV (loan-to-value). 

Grupeer have a special section for Real Estate Development Projects. It is a series of loans to development projects and is displayed in its own section. The primary market is divided into regular investing and development project investing. A development project is illustrated below:

Automatic investing

Automatic investing is available at Grupeer and the options are as comprehensive as when manually investing. Defining the loan originators, loan type and country is a useful option if your planning to only use the auto invest. Being able to set the repayment type is also helpful when estimating the length of the investment and determining the size of the desired cashflow and amount of re-investment.

Secondary Market

Grupeer do not yet have a secondary market or any early exit options. This can be a challenge if one is not comfortable with binding the money for the full loan duration. However, Grupeer has announced that they will introduce a secondary market later providing investors the possibility to sell off the loan before termination.

Nice to Know for Investors

Registration Process

Registering at Grupeer is simple and easy to do. Creating an account as an individual requires very few personal information: Name, citizenship, phone number, email and password. Grupeer comply with KYC (Know Your Customer) and you must provide an identification document when you want to withdraw money.

Deposit & Withdrawal Process

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

  1. Transferring money into the Grupeer account with any of the below listed Funding Methods.
  2. Your funds will be available for investment within the day of confirmed arrival to Grupeer (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 the simplest process of the two. You just click the “withdraw funds”, enter the amount you want to withdraw and wait the 1-3 business days. There is no minimum withdrawal restrictions and no additional fees or commission for withdrawing funds. Remember, depending on your own banks fee structure, they might charge you for handling the transaction or exchanging currency.

Funding Methods

Reporting

Grupeer features an investment overview with information about all the investments made at the platform. The breakdown is sortable on loan type, interest rate and purchase date. The overview displays summarized information, so it is easy to see how much interest income have accrued as well as the total available funds and investing amounts. It is possible to download the account statement as an excel file with income, total amount, opening and closing balance. The reporting is very good at Grupeer – it has the necessary information and more.

Grupeer Tax

According to the legislation of the European Union, the place of conclusion of a deal when purchasing a product or service is the location of the acquirer. Accordingly, the income receival jurisdiction is the country of your residence, or registration. When you withdraw money from the Platform account to your personal bank account, you pay the tax in accordance with the laws of your tax jurisdiction.

Grupeer FAQ “Is the income from deals concluded through Grupeer Platform subject to taxation? If so, what is the applicable tax rate?”

Support

Grupeer do not have a chat function but give support through email. The platform is rather new and the support is 2 – 5 days to reply but they are definitely contactable and do reply to the questions you might have.

Grupeer Competitors

Who Can Invest?

In accordance with AML (Anti Money Laundering) legal requirements we accept money transfers from accounts opened with licensed credit institutions in the countries of the European Economic Area (all EU Member States, Norway, Iceland and Liechtenstein), as well as Switzerland. Accordingly, citizens / residents of these countries can register and make investments through the Grupeer Platform. In order to register and close deals, you need to be an adult capable person with a bank account.

Grupeer FAQ “The citizens of which countries can register and close deals on the Platform?”

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 – without additional costs to you. The information on this site does not constitute investment advice and is solely to give you a simple an easy overview of the platform. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

* Historical return is not a guarantee of future return. The number is directly from Grupeer’s website grupeer.com

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