Total Funded: 100,145,241 €

Historical return: 12.22 %*

TFG crowd is a new platform focused on direct p2p business lending of varies kinds. It’s main office is located in Tallinn, Estonia, but TFG crowd focuses on Latvia, United Kingdom and Germany as well. All loans are in Euro and many are offered with a buyback guarantee.

Last updated: June 11. 2019

P2P Business Area:

Founded:

Founders:

Country of Origin:

IPO Status:

Countries of Operation:

Business loans, business shares, invoice finance, mortage loans & trade finance

2018

Emil Kerimov

Estonia

Private

Estonia, Latvia, United Kingdom & Germany

EstateGuru - Overview

P2P Business Area:
Real Estate lending

Founded:
2014

Founders:
Filip Karadaghi, Joe Vallender, Nikolajs Smirnovs

Country of Origin:
United Kingdom

IPO Status:
Private

Countries of Operation:
England & Wales

TFG crowd Investor Introduction - how does it work?

TFG crowd - Pros & Cons

Pros

  • High interest rates
  • Most loans are offered with a buyback guarantee
  • Only direct investments structure

Cons

  • High risk
  • No secondary market
  • No auto invest

Characteristics of Loans

Interest Rates

7 % - 17 %

Loan Durations

6 - 24 months

Currencies

EURO

Buy-back Guarantee

Minimum Investment

0

Direct Investment Structure

Loans on TFG crowd

TFG crowd provides a simple and informative overview of projects open for investment, upcoming projects and already funded projects. When you enter an investment project, you will se the most basic information in the top of the page as shown below to the left: Days left to reach goal, amount pledged, goal and number of backers. This is followed by a summary of the loan details, which is shown below to the right. Here, you will find additional information about investment type, interest rate, purpose of loan, how the interest is paid, the loan term and how the investment is repaid.

A great thing to highlight about TFG crowd is the thorough research presented on company seeking the loan, investor benefit and loan security and especially the market outlook relevant for the company. These can be found in the section following the brief. Also, an easy to use function to calculate your expected return can be accessed next the description.

Buyback Guarantee on TFG crowd

TFG crowd offers a buyback guarantee on almost all of their loans. The buyback guarantee from the company will ensure that if a borrower is late with the repayment, you will be compensated both the invested principal amount and interest and the accrued interest. This will happen after 30 days of delay.

Direct Investment Structure

There are two different types of investment structures in peer-to-peer 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.

TFG crowd is a traditional lending-based crowdfunding platform and every loan is structured as a direct investment structure. This helps to make it easier to better evaluate the risks involved, since you know that you are lending directly to the specific business instead of lending to the business through a loan origination middleman.

Platform Features

Manual Investing

Manual investing at TFG crowd is simple and easy accessible. As a new platform with a direct investment structure, a satisfying amount of loans are consistently being published, but you will need some patience if you want to diversify your investments across a large number of projects. When investing you will see cases as the ones displayed below where you have the possibility to filter loans after “actual”, “coming soon” and “Funded”.

Automatic Investing

Automatic investing is not available on TFG crowd at the moment. This can be a downside for lenders just want to be diversified into as many loans as possible without being willing to browse and look through every project for the best deals. On the other side, having no automatic investing feature forces lenders to actively make decisions on every project instead of just blindly placing money into all kinds of different projects that could cause an overweight in for example vacation homes or any other specific risk category. 

Secondary Market

TFG crowd does not have a secondary market or any other options for exiting your investments early. All finance theory says there are two things that are poison for investments: 1. Needing to withdraw money; 2. Being forced to withdraw money. However, you might find yourself in a situation where you unexpectedly must withdraw money from the platform. In that case, the lack of an option of early exit will be a downside since you will have to wait until the loan has been paid back before you can have your money.

Nice to Know for Investors

Registration Process

Registering at TFG crowd is simple and easy to do. Whether you’re an individual investor or investing as a company, creating an account requires just an email and a password. Yet the company registration is not available without contacting them. The platform is available to everyone with a European bank account. After creating an account, the platform will send an email with instructions 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, you will have to complete the KYC before unlocking investing and withdrawing.

Deposit & Withdrawal Process

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

  1. Transfer money to your TFG Crowd account from your bank with traditional bank transfer, TransferWise or any other below listed Funding Method.
  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 land in your account. There is no minimum withdrawal restrictions and no further additional fees or commission for withdrawing the funds from the platform – 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 - need validation to see

As a new platform TFG crowd has a simple reporting overview, your able to see the projects invested in and the transactions completed on your account:

  • My Projects: Every project you have lend money to is available for display in this area, making it easy and simple to see the process and projects of your financial interest.
  • Transactions: Your total balance on the platform, as well as every transaction made through their system. This is your account statement.

TFG crowd Tax

TFG crowd FAQ: “Is the interest that I earn net of tax?”

Support

TFG crowd has an email and a UK +44 number costumer support available to answer questions. They usually answer within a day or two in business working hours (Mon – Friday, 9.00 – 18.00 UK time) and we experience general good communication with their team. We have yet to experience not being answered within the same day/few weekdays. They were qualified to answer every question we had and do not seem to avoid answering.

TFG crowd Competitors

Who Can Invest?

Anyone who is at least 18 years old and has a bank account in one of the European Union States or EEZ banks.

TFG crowd FAQ: “Who can invest in TFG crowd 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.

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