Fast Growing Loan Originator Marketplace
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.
|Business:||Loan Originator Lending: Consumer Lending, Real Estate Lending & Secured Car Lending|
|Countries:||Belarus, Czechia, Denmark, Kazakhstan, Lithuania, Moldova, Poland, Russia & Ukraine|
Office location in Riga
Table of Contents
PeerBerry Pros & Cons
Characteristics of Loans
10% – 13%
1 day – 75 months
Buy-back Guarantee ✔
Minimum Investment ⇙
Both 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.
- All Aventus Group and Gofingo loan originators comes with an additional group guarantee.
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.
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)
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.
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.
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
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:
- Transferring money into the Peerberry account with any of the below listed Funding Methods.
- Your funds will be available for investment within the day of confirmed arrival to Peerberry (usually 1-3 banking days).
- 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.
PeerBerry features a simple account statement page with most of the information needed as a lender:
- Interest income
- Principal repayment
The account summary can be specified in the time frame desired and with opening/closing balance.
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.
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.
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.
Is PeerBerry Regulated?
Peerberry is not yet regulated but latest in February 2020 announced it is continuing with further steps in the process of obtaining the Investment Broker Licence. The platform announces new information about the regulatory process as it progresses, but as it is known such a license in UK can take a long time to get.
PeerBerry Cashback Bonus - Get +0.5% Extra
|Total Investments:||+253 million|
|Total Interest Paid:||+2.65 million|
|Number of Investors:||+ 21 thousand|
|Monthly Loans Originated:||+ 50 thousand|
|Loss of Investor Capital:||0|
|Monthly Loans Originated:||21,149|
|Latest Financial Report:||2018 (PDF)|
Is PeerBerry a Scam? Is it Safe?
PeerBerry is a well known platform, established in 2017 by the Lithuanian based payday lender Aventus Group, that have been profitable since it was launched in 2009. In January 2018, Genrik Baitiul and Ivan Butov bought the platform from Aventus Group. According to PeerBerry both shareholders are passive investors and they do not take any positions at PeerBerry nor participate in PeerBerry management decisions.
Genrik Baitiul has extensive experience in companies’ management, developing businesses in real estate and IT industries. He currently works as CEO in IT company AIS Consulting, he owns 40% of shares of this company. AIS Consulting is providing different IT solutions for different businesses including financial companies. Genrik Baitiul experience played a very important role in the development of PeerBerry platform, especially starting its’ business in 2017.
Ivan Butov is experienced expert mainly in risk management and quality assurance. Previously Ivan Butov headed different companies as managing director, took the position as a member in loan committee in the credit union, currently he works for the company TELEMED Medical Ultrasound Systems as Quality inspector.
Currently PeerBerry is applying for a Investment Broker Firm (IBF) License in Latvia, where the platform is registered. After PeerBerry receive IBF license, it will be a very good sign that PeerBerry is a safe and secure platform to be using for investors.
As the platform is a facilitator for loan originators, the safety of the loans will always very much depend on the actual companies investors are lending money through and to, and the guarantees offered by the individual originator, so as always to get more information about the risks associated with it, looking at the individual loan originator is key. In addition to the buyback guarantee, PeerBerry’s business partners Aventus Group and Gofingo Group provide an additional Group guarantee for their loans listed on the platform.
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.