Crowdestor started in early 2018, makes it a new P2P platform. It is based in Latvia and offers high-quality business loans, retail, renewable energy, forestry, and real-estate loans. To some degree, it is very similar to Envestio and a very good alternative when no projects are available to invest inside Envestio. Crowdestor publishes around 8 projects a month, providing a good amount of diversification.
My very first investment in Crowdestor was on the 04 June 2019, a Renovation of eclecticism style building project for 9 months at an interest rate of 21%. None of my personal projects have yet been paid in full, however seeing a plenty of past projects, gives me trust in the project. I have read tons of othe reviews and yet to find a negative comment on this platform.
- €0 fees for opening account
- €0 fees for investing
- €50 as a minimum investment amount per project
- Avg interest rates of 12%-21% (depending on project)
Buyback Guarantee Fund
Crowdestor offers a Buyback Guarantee Fund used to safeguard an investors return in case a borrower defaults on their loan. This is quite unique approach to other P2P investment platforms. Before the project starts, Crowdestor pledges an investment of €50,000 in the Buyback Guarantee Fund. Since March 2019 they also introduced a 1-2% from each project that is funded into the fund. This gives a safety net if a loan defaults. The goal was to have a pool of €100,000 by the end of 2019, however due to the platforms popularity that has been achieved in the first 6 months.
You can check their buyback fund status here.
In case of a loan default, the Platform will compensate all Investors, in a proportionate amount, according to Distribution Rules of Buyback Guarantee Fund, their contributions to the particular project.
All the projects I have been invested so far offer personal security. This means that the borrower has provided additional legal insurance such as a mortgage, mixed collateral or personal guarantee, as well as other essential agreements.
When choosing a project to invest in, always make sure the project page is part of the buyback fund and that there are personal pledges from the borrower side.
This is where it differs from other P2P platforms. As for now, all payments have been paid on time, however, the payment schedule works differently for all projects. Some projects pay the interest monthly and that’s great. Other projects pay a lump sum after the first 6 months and then continue a monthly payment. Some others pay quarterly.
So if you are invested in a lot of this project types it will take a few months before seeing your returns.
Crowdestor is by far one of my top P2P platforms and a great alternative to Envestio. I like the variety of projects they get to offer and also projects are based in different countries too which offer great diversification. The platform publishes around 8 projects a month sometimes as much as 4 projects a week, so it is definitely one platform I recommend to get started in.
The one minus is that since payment schedules differ it will take time to see interest returns. In total, I am invested in 17x projects and all of them are still in progress of being completed. Currently, I sit at a 0.8% returns but it’s forecasted to be 17.07%
Signup Bonus & Cashback Offers
Earn a 1% cashback on all total investment done within the first 90 days of opening your account.