Wisefund started a few months ago in March 2019 and therefore it’s fairly new in the P2P lending space. Having no track record makes any platform risky, so be careful at this point. I have started with a few hundreds spread across multiple projects to test the waters and see how everything plays out. Although everything is still new, I am enjoying the high returns and the diversification of loans in many different European countries. So be aware of the risks before you jump into it.
Wisefund offers high return loans and is focused on small to medium-sized businesses. Some of the past projects include railway operations, electronic stock purchase, automotive and yachting repairs.
My very first investment was on August 22, 2019, in the hospitality sector. The loan returns are at 19.3% with a period of 6months. At that time that was the shortest loan investment, I could find. When I check a new platform I always like to test it with short term loans to make sure I get all the returns and see a fully funded project, where I can also withdraw my money. Interest payments always arrive at the end of the month and my very first few interest payments have been on time.
- €0 fees for opening account
- €0 fees for investing
- €10 as a minimum investment amount per project
- Avg interest rates of 16%-21% (depending on project)
Wisefund claims that investors’ money that is deposited are held in separate client funds, that do not form part of the company’s assets. Then are transferred to the borrower based on the exact investment order.
3rd Party Buyback Guarantee
The BuyBack Guarantee is offered by an independent third-party partner for late and defaulted loans. The partner will buy out all claims at a 100% rate. The guarantee does not cover any of the unpaid interest rate payments. So your principle is 100% covered giving stability and peace of mind. This depends on the project, so make sure that investment is protected before investing. So far all loans have been covered.
Wisefund carefully selects businesses to lend on the platform. With thorough analysis and background checks, they are confident in each project listed, but risks still remain even when minimal. Wisefund shares a certain fee of each loan from its own profit, and deposits it into a special protection fund designed to be a final and guaranteed protective step of your interests. It covers legal costs, your interest payouts and any other expenses that may accrue as the loan defaults. With the protection fund, they tend to guarantee that you will initially receive your profit on investments.
Early Investment Exit
If you wish to exit your investment it is possible at a fee. This fee differs from one project to the other. Most of my investments are set at a 15% fee while another one is at 10%. It’s pretty high compared to other platforms, so make sure it is enough money you would not require before you commit to an investment.
As per the sample investment loan above, always make sure that under security, Buyback guarantee and Covered by protection fund are always available.
At this point, there is no auto-invest feature and there are no plans yet. Make sure you sign up for their emails so when a new project is published you are notified.
As mentioned in the Buyback guarantee, defaulted loans are 100% protected by a 3rd party partner.
One of my interest payments received a day late the rest were all on time. The payment schedule happens on time and always on the last day of the month. So expect a lump sum of all your investments on day 30/31 of every month which is nice. That way you only need to check the platform ones a month and double-check your earnings.
My Personal Experience
Still early days with this platform, but I like their concept so far. I like how they operate and the idea of a 3rd party insurance to buy the defaults at 100% gives me peace of mind. It sounds better than other platforms I’m invested in, so time will tell. Payments have all been received so far as said, one investment return arrived a day later but better than never. I’ll keep monitoring the new projects a diversify small amounts and hopefully, it can grow into another strong platform.