Total Funded: € 46,758,490

Historical return: 11.94 %*

Total Funded

€ 46,758,490

Historical Return

11.94 %*

PeerBerry is a marketplace for peer-to-peer lending that allows users to invest in loans granted from nonbank financial institutions (Loan Originators). Most of the loan originators have buyback guarantee in the areas of consumer loans, real estate loans and secured car loans.

Last updated: February 23. 2019

P2P Business Area:


Founded:

Founder:

Country of Origin:

IPO Status:


Countries of Operation:

Number of Investors:

Consumer Lending, Mortgage Lending & Secured Car Lending

2017

Aventus Group

Latvia

Private

Lithuania, Poland, Czech Republic, Denmark, Kazakhstan, Russia & Ukraine

3,550

PeerBerry - Overview

P2P Business Area:
Consumer Lending, Mortgage Lending & Secured Car Lending

Founded:
2017

Founder:
Aventus Group

Country of Origin:
Latvia

IPO Status:
Private

Countries of Operation:
Poland, Lithuania, Czech Republic, Denmark, Kazakhstan, Russia & Ukraine

Number of Investors:
3,550

Pros & Cons

Pros

  • High interest rates
  • Large number of available loans
  • High cashflow - possibility of quick withdrawal
  • Automatic investing with same filters as manual investing

Cons

  • High risk
  • No secondary market
  • Indirect investment structure
  • Short loan duration - more re-investment

Characteristics of Loans

Interest Rates

10 % - 13 %

Loan Durations

1 day - 75 months

Currencies

EURO

Buy-back Garantee

Minimum Investment

0

Direct & Indirect Investment Structure

Assets as Collateral

Loans on PeerBerry

PeerBerry have a simple informative overview of the different loans on the platform. The most basic information such as interest rate, amount available for lending, days/months left of the loan are specified in the top of page. Below this you will find information regarding the loan details and borrower details. Loan details are information such as loan type, originator, initial term and date of issue. Borrower details are the country and city of origin, age and gender of the borrower and more importantly how many loans the person have already taken.

Buyback Guarantee on PeerBerry

The loan originator buyback guarantee on PeerBerry 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, the loan is paid back if the borrower is more than 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.
PeerBerry have both direct and indirect investment structures with the loan originators present at the platform. So what happens if the loan originator goes bankrupt? The loans within the European Union countries present on the platform (Denmark, Poland and Czech Republic) are structured with direct investments. This means that if the loan originator goes bankrupt, you will still have a claim against the borrower. The other countries (Russia and Ukraine) works via the indirect investment structure. This means that you are lending money to the loan originator who then lends to the borrower. So if the loan originator in Russia and Ukraine goes bankrupt, you will loose your money and have a claim against the loan originator. 

Assets as Collateral

The loan originators at PeerBerry have lending operations in, as of writing, 7 different countries with different assets to claim in case of borrower default. First of all, almost every loan is covered by the buy-back guarantee if the loan is not paid according to the terms. If the loan originator defaults, the buy-back guarantee will most likely not be possible to uphold anymore. This is when the assets to claim becomes important. In the end every loan is defined by the secured asset except when talking about indirect investment structures in the peer-to-peer market. The unsecured consumer loans still have a claim against the borrower, but there might not be any assets to liquidate if the loan is not paid on time. The two types of asset-backed loans on PeerBerry are:

  • Cars (from secured car lending)
  • Property/Real Estate (from personal mortgage lending)

Platform Features

Manual Investing

The primary market for manual investing is simple and limited to interest rate, duration, amount, country, loan originator and whether it should filter loans with buyback guarantee or not. The only big thing missing is the filtering on loan types, but it can be done by sorting loan originators when you know which ones offer what type of loan in which country. PeerBerry is a fairly new platform compared to many of its competitors and it has already attracted a lot of investors very fast. The amount of available loans is not huge, but enough to diversify on different loan originators, countries and assets behind the loans.

Automatic investing

Auto investing is possible at the platform and with the same options available as with manual investing. The automatic investing feature is divided into ‘Portfolio information’ and ‘Loan information’ (settings). You have the possibility to limit the portfolio size, maximum investment in a loan and the minimum funds you would like on the account. This is useful when creating different portfolios for different loans and originators. Under portfolio settings are also some loan information such as interest rate and duration of the loans.

The loan information is narrowed down to loan status, country and whether you want it to include loans with buyback guarantee or without. When investing with automatic investments you have the option to not reinvest the money. This might be the case if you want it withdraw the money from the platform or diversify into other portfolios. Creating different portfolios is essential if you want to diversify your investment with certain amounts in each risk category/loan originator. 

Secondary Market

No secondary market is available at PeerBerry, but for investments in long term loans you have the option to sell back the loan. Selling back the loan means that your loan will be bought back for an extra service fee. Approved short term loans cannot be cancelled. When investing in short term loans (consumer loans), you only have the option of waiting until either your loan agreement is completed, or the buyback guarantee is activated.

Nice to Know for Investors

Registration Process

Registering at PeerBerry is very simple. Creating an account as an individual requires just an email and a password. The platform complies with KYC (Know Your Customer) and you need to provide an identification document to withdraw money from the platform. 

Deposit & Withdrawal Process

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

  1. Transferring money into the Peerberry account with any of the below listed Funding Methods.
  2. Your funds will be available for investment within the day of confirmed arrival to Peerberry (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. It consists of clicking “withdraw funds”, entering the available amount and waiting the 1-3 business days. There is no minimum withdrawal restrictions and no further additional fees or commission for withdrawing the funds. Remember, depending on their fee structure, your own bank might charge fees for handling the transaction or exchanging currency.

Funding Methods

Reporting

PeerBerry features a simple account statement page with most of the information needed as a lender:

  • Interest income
  • Principal repayment
  • Investment
  • Deposit
  • Withdrawal

The account summary can be specified in the time frame desired and with opening/closing balance. 

PeerBerry Tax

On almost every P2P platform your obligated to pay tax in our home country like with every other income you earn. PeerBerry does not address the tax question in their FAQ but provides the possibility of creating tax statements. These can be found just below account summary under “statements”. Generation of the tax statement will give you a document showing how much you have earned on the platform.

Support

PeerBerry does not have a chat function on the site, but an email costumer support. The platform is new and growing very fast compared to other platforms, so the costumer support is not fast, but it seems that they take their customers seriously and answers to most questions in reasonable time.

PeerBerry Competitors

Who can invest?

PeerBerry does not address who can invest in their FAQ and it seems that there are no restrictions to who can invest if a valid ID for KYC is provided (such as passport). If you invest from outside the European Union, make sure to become a validated investor by providing ID before transferring to 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 – 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. The number is directly from Peerberry’s website peerberry.com

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