40,913 investors have already invested EUR 148 million through Bondora and have received EUR 19 million in interest
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40,913 investors have already invested EUR 148 Million through Bondora and have received EUR 19 million in interest.
70% of investors - including 253 from United States of America - have earned over 9% annually.
When it comes to crowd-based funding, online venues that cater to individuals have attracted most of the attention. This is not surprising given that the alternative finance models that have accounted for the largest share of activity in recent years are peer-to-peer (P2P) consumer lending platforms such as the one offered by Bondora.
But what many people might not realize is that alternative business funding volumes have also been growing rapidly. In Europe, for example this segment has recently seen upper-double and triple-digit percentage increases. According to the Cambridge Centre for Alternative Finance at the Cambridge Judge Business School, P2P business lending and equity-based crowdfunding rank second and third, respectively, after P2P consumer lending.
In fact, the Centre noted in a report, Sustaining Momentum, published in collaboration with accounting firm KPMG and the CME Group Foundation, European alternative business lending platforms have in recent years become "an important source of finance for entrepreneurs, start-ups and small and medium-sized enterprises (SMEs)."
Initially, these collaborative approaches sprung up to meet the needs of individuals who had long been shortchanged by banks and other intermediaries, notably in countries where they had a stranglehold on domestic financial activity. However, the benefits they could offer to all sorts of businesses were not hard to miss. Today’s online platforms not only help to increase the resources available for those who ae seeking financing, they also facilitate terms that are more economical and accommodating than what the bricks-and-mortar establishment has to offer.
Suddenly, firms with good long-term prospects no longer have to struggle to be taken seriously by investment bankers, venture capitalists and the proverbial rich uncles who are only looking for home runs and who expect a lot for their support and services. Instead, businesses can direct their pitch to a receptive audience and frame it in ways that cater to different needs and interests. If they choose, they can go with the option that most closely resembles the traditional capital-raising approach: equity-based crowdfunding.
However, there are big differences between the old way of oiling the wheels of commerce and the new alternative finance model. With equity-based crowdfunding, there are no middlemen taking a big cut that comes out of both sides' pockets. There is also greater transparency and efficiency, which creates a more collaborative and constructive atmosphere. Under the circumstances, it is easier for those involved to strike deals that make sense and are fair, and that everyone is happy with.
But not every platform is simply a newer and better version of what existed previously. In some cases, other factors, including differences in generational mindsets, have spurred completely novel approaches. If somebody has an idea, for instance, for an interesting new product that is just what people are looking for, those with the urge to transform that vision into reality can seek to tap the financing available through a reward-based crowdfunding platform.
Using this approach, they can potentially build a business – based initially, perhaps, on little more than a concept – and join the ranks of others who have turned their entrepreneurial dreams into thriving enterprises. By collaborating in this way, they can also garner the kind of valuable customer and market feedback, product insights, operational know-how, and marketing visibility that many SMEs have a hard time getting without spending a lot of time and money in the process.
The range of activities that are now being financed at online marketplaces has also expanded significantly. Investors and lenders are not just engaging in transactions aimed at creating businesses and bringing new products to market. They are also providing a way to fund an asset class that is, globally speaking, valued at almost three times the output of the world economy, according to Savills, a United Kingdom-based real estate advisor.
Like the business-focused platforms, P2P business lending and equity-based property crowdfunding enable those seeking attractive risk-adjusted returns and portfolio diversification to choose a strategy that suits them best. As with other variations of the two approaches, the equity-oriented model generally appeals to those who are comfortable with taking on more risk in exchange for higher potential gains. Those who are somewhat risk averse and have more moderate expectations about upside prospects, or who are mainly interested in income, tend to favor the alternative.
Regardless, despite the notable success of equity-based crowdfunding, reward-based crowdfunding and P2P business lending, it is worth keeping in mind why some might nonetheless prefer the original consumer-lending concept. Among other things, the fact that it centers on financing a large number of small, short-term loans to borrowers whose credit histories, economic circumstances and other relevant details are not overly hard to evaluate makes it a logical choice for some types of investors.
When evaluating businesses that are seeking financing, there are generally more factors that need to be taken into account. A well-run company can still suffer financially from shifting tastes and preferences, cutthroat competition, or a change in the macroeconomic landscape. Even if they are genuinely intent on honoring their obligations, they could nonetheless find it difficult to stay in business. While any number of individuals might also be affected by an economic downturn, history suggests that most will do whatever is necessary to remain afloat.
Regardless, decisions about whether the consumer or business segments, or the crowdfunding or crowdlending strategies, represent the best course of action will depend on expected return calculations, risk tolerances, the time periods and amounts of money involved, and other factors. Undoubtedly, some investors might prefer income to capital gains, or view a cautious balance between risk and reward as more favorable than others who are involved in today’s online marketplaces.
Whatever the case, for those who are seeking opportunities that can be tailored to their specific needs and goals, rather than those that suit banks and other traditional financial services intermediaries best, today's alternative finance platforms look to be quite an appealing option.
There are no fees for investing in the primary or secondary markets. A small collection and recovery fee is deducted from the cash flows of delinquent loans.
There is a large internal secondary market that enables investors to buy and sell their existing investments. We have developed a fast and automated liquidation feature on our platform.
An international investment bank has identified Bondora as the highest yielding peer-to-peer (P2P) lending platform across the globe.
Investors can access hundreds of data points about the investments available through our marketplace by way of our user interface, data exports or the public API.
All transaction ledgers and data on issued loans are available via our public statistics and data export pages.
Bondora has solid track record dating back to 2009, providing high returns to investors both in negative and in positive market conditions.
Bondora.com is a leading peer-to-peer (P2P) lending platform for investing in European non-bank personal loans. All loans are issued by our parent company, Bondora AS, which retains a share of the risk of every loan it offers through the Bondora.com marketplace.
Bondora issues loans to individuals in Finland, Spain and Estonia. These markets are underbanked in comparison to other Western European markets, owing to oligopolistic banking structures and the fallout from past financial crises. Uncompetitive banking sectors and a limited focus on consumer finance have created a high-cost environment with little credit available for the near-prime borrower segment.
In short, no. We provide you with easy-to-use automatic investing tools that make it simple to invest through Bondora. We take care of borrower credit assessment, scoring, payment collection, and collections (in cases of nonpayment), giving you complete peace of mind.
You can invest in Bondora loans, which are fixed-income investments that generate monthly cash flow from principal and interest payments.
All borrowers are risk-assessed using Bondora’s sophisticated underwriting models and assigned to credit groups where the interest rates offered reflect the relevant risks.
Anyone who is over age 18 and living in the EU, Switzerland or Norway, as well as businesses registered in the EU, can invest through Bondora. If you live or work outside the EU in any of the countries that comply with the EU’s anti-money laundering directive, you can invest through Bondora if you are an accredited investor.