35,153 investors have already invested EUR 124 Million through Bondora and have received EUR 18 million in interest.
74% of investors - including 188 from United States of America - have earned over 9% annually.
P2P Lending – At the forefront of a financial revolution
The financial world has witnessed the launch of many innovative products and services in recent years. Well-known examples include Bitcoin and other so-called cryptocurrencies, which many view as a substitute for traditional currencies; digital payment services that make taking care of bills and sending funds to family and friends a lot easier than it used to be; and online financial portals that allow people to access and monitor bank and other accounts from one location.
However, few of these innovations have proved to be the game-changer that peer-to-peer lending has been. In less than a decade, P2P lending has become a mainstream financial resource helping to match those who are seeking to borrow money for various reasons with those who are looking to earn more on their money. In fact, the global peer-to-peer market is expected to grow at a compound annual rate of nearly 50% through 2024, according to Transparency Market Research.
So, what is P2P lending?
For those who have not yet taken advantage of this investing alternative, the obvious questions are “What are the things you need to know about P2P lending?” and “How does P2P lending work?” As with many innovative offerings, the practical aspects can seem daunting at first. In truth, it's not that complicated. One reason why is that the established leaders in online P2P lending, or "marketplace lending," as it is also called, are firms that know what their customers want.
But they don't just understand what it takes to satisfy those who are looking for a better deal than they get from banks, brokers and other intermediaries. Major technological advances and the global reach of the internet have enabled them to turn their service-focused ambitions into an exciting and powerful reality. At the best P2P platforms, it typically takes only minutes – and a few clicks or touches, depending on whether you are using a computer or a phone – to sign up and start taking part, which is well suited to today’s fast-paced world.
Putting your money to work – quickly and easily
For those who are looking to earn attractive risk-adjusted returns, the next step is to provide the necessary details, including how much you want to invest and the strategy you prefer, which can be as hands-on or as hands-off as you prefer. You will also arrange to fund the account with an amount that makes sense for you and your long-term financial goals. Once that's taken care of, you can immediately put your money to work making loans to creditworthy borrowers.
Of course, at reputable online P2P lending sites, those who are seeking financing are evaluated based on well-honed underwriting standards, which helps ensure that they are being offered interest rates and other terms that are appropriate to their circumstances. Seasoned lenders such as Bondora also work with institutional-quality service providers and, even more important, have their own skin in the game, which means they care about the quality of the loans on offer. And for those rare occasions when borrowers don’t live up to their responsibilities, Bondora has a well-managed default-control process in place.
In a nutshell: Bondora p2p lending platform benefits
In reality, this is how most P2P lending marketplaces work, but some firms give their customers a whole lot more. At Bondora, for instance, investors have considerable flexibility when it comes to their investing strategy. The firm knows that its customers, who hail from many countries around the world, can have very different needs and expectations when it comes to managing their finances and preparing for the future.
If you want to be intimately involved at every step of the way, Bondora offers in-depth historical data about creditworthiness and lending trends, as well as tools that allow you to fine-tune your strategy as much and as often as you like. However, if you prefer a less time-consuming approach, or just want to rely on Bondora's proven algorithms for identifying and selecting attractive opportunities, that option is also available.
What is P2P lending liquidity?
Even knowing all that, it’s a good bet that there are other things you need to know about P2P lending. Many customers might wonder, for example, how long their money will be tied up if they invest in this way. While it's true that the loans on offer generally have terms ranging from six to 18 months, that doesn't mean you have to be fully or even partially committed for that period of time.
Indeed, one of the many Bondora P2P lending platform benefits available to investors is the ability to quickly and easily determine what happens to their money once it is in their account. Through sophisticated technology and user-friendly interfaces, the Bondora P2P lending marketplace provides you with two ways to ensure your funds are being deployed in the manner that suits you: a one-click lending liquidity feature and the option to automatically fund new loans – through Portfolio Manager or Portfolio Pro – that meet certain criteria.
How can you benefit from P2P lending liquidity?
In fact, aside from giving you complete control over your investing strategy, today's technology enables you to take charge of P2P lending liquidity. What this means is that you determine how much cash you need to have on hand to accommodate changes in circumstances or other needs or requirements you might have. If, for example, you find that you have unexpected bills to pay or that your financial goals have changed, you can make the necessary adjustments in the blink of an eye.
Better yet, as with all of the other customer-oriented features that Bondora offers, you don’t have to initiate this action each and every time. Instead, using the automatic liquidity options that are available to all investors after signing in, you can arrange – at regular intervals or under conditions you determine – to either liquidate some portion of the loans you hold or take advantage of opportunities in Bondora’s active secondary loan marketplace. You’ll be secure in the knowledge that your money is being managed the way you like.
A great way to achieve your financial goals
All of these features and user-friendly advantages don’t even touch upon one big reason why investing in P2P lending makes a lot of sense. At Bondora, don’t just gain access to an asset class that has proven itself over time. You also benefit from what professionals have long described as the financial world’s only “free lunch”: diversification. In fact, you end up being diversified in two ways: you avoid having all your (investment) eggs in one basket, and your risk is spread among different creditworthy borrowers and loans.
Simply put, you shouldn’t just look at P2P lending as a new method of financing. Instead, you should see it for what it is – a sophisticated but easy-to-use strategy for achieving long-term financial security. Regardless of your individual circumstances or how much you have to invest, this innovative online investing alternative has a great deal to offer. Isn’t it time that you got involved?
Learn more about Bondora from our white paper
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.
Fast liquidity on largest secondary market for P2P 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.
Highest yielding P2P platform for investors
An international investment bank has identified Bondora as the highest yielding peer-to-peer (P2P) lending platform across the globe.
Advanced analytics to track investments
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 loan data is public
All transaction ledgers and data on issued loans are available via our public statistics and data export pages.
Solid track record
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.
How are you able to offer investors “above-market” returns?
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.
Do I need a lot of experience to invest through your platform?
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.
What type of investments can I make through Bondora?
You can invest in Bondora loans, which are fixed-income investments that generate monthly cash flow from principal and interest payments.
How do you determine whether a borrower is creditworthy?
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.
Can anyone invest on Bondora?
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.