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What is Grupeer?
Grupeer is a peer to peer (p2p) lending platform. P2P lending is a relatively new investment method. In the past, this investment was reserved for the banks who gave out loans to companies and individuals.
Now financial companies can provide loans and then resell them on Grupeer. Grupeer is not a loan originator in itself but a p2p marketplace. The advantage of p2p lending to finance companies is they get to work with more capital this increases their portfolio, which means increasing diversification and reduced risk. Grupeer offers three kinds of loans: to individuals, to business and to real estate developers.
- Alla Kisik is the founder and owner of Grupper. You can see an interview below.
- The platform launched in 2016.
- There are more than 10 employees working at Grupeer.
- The average project interest rate is of 13.41%
- €56 089 529 have been funded as of 15 /9/19
- There are 15289 investors from 84 countries on the platform
How does Grupper Work?
What are the advantages to invest in Grupeer?
- Investments have yielded over 12% a year since inception. Taking the past as a guarantee of the future is done at your own risk! There are few investments which have this high APR on the upside but so little risks on the downside (at least on paper).
- Grupeer validates the creditworthiness of the lenders, if this was up to the individual it would be impossible to do.
- Unlike most other p2p lending companies, Grupeer offers a mix of loans; loans to individuals, business and real estate developers. This increases diversification. In addition, property loans have land or buildings, that act as an additional guarantee in case the lender fails to pay.
- Soon Grupper will issue the Grupeer Stability Fund. Investors will be able to buy a square meter of a property, this will entitle them to a share of the equivalent profit. Another company, PropertyMoose, has tried to do this in the UK but failed.
- The auto investor gives you the opportunity to reinvest funds automatically, which helps you compound your earnings quickly and not spend time selecting loans.
- If the borrower fails to pay back loans for 60 days, the loan originator buys back the loans.
- With the right auto investor settings, you can balance auto invest in the three loan types offered.
- Grupeer can offer passive income in the form of interest, investors have the option to have a hands-off approach to this investment.
What you should be aware of when investing in Grupeer?
- P2p investing is a risk! The industry and regulation are relatively new and have not been stress tested. The European p2p industry is yet to go through a Europe wide recession.
- The platform and p2p industry have a relatively short track record, what this means is we do not know how p2p or Grupeer’s ability to withstand internal or external shocks
- Grupeers offers three loan types, this offers diversification of loans. On the other hand, it has to deal with a diverse set of loan originators. All of which have lent to different types of clients.
- If earnings are not re-invested, either because you do not have an auto investor setup or because there are no loans available, you will not earn any interest.
- There is no secondary market, this means investors cannot get out of a loan if they want to liquidate early.
- You must invest a minimum of EUR 10 in one loan.
- No risk rating is available on each loan. In other platforms such as Mintos, a risk rating is available. There are adequate information and pictures about the borrower.
- It is unclear if the loan originators always hold enough cash to buyback all the loans they have issued. If not, it is unclear what are the rules on the ratio between their cash earmarked for the buyback guarantee and the amount of loans available.
To Register on Grupper Follow this link: Grupeer.
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