Besides high returns, Grupeer’s central focus point is investor security. All loans are protected by buyback, which in itself is reasonably common within P2P lending. But Grupeer goes a step further by guaranteeing buyback even in case of loan originator’s bankruptcy.
In addition, all loan originators working with Grupeer have been through a rigorous approval process at which only 25% are accepted. Thanks to their strict requirements, no loans have yet been outstanding.
Anyone ages 18 or older and who resides within the European Economic Area or Switzerland can invest through Grupeer, provided they have a bank account in one of these countries. Investors with a bank account outside the EEA can often invest as well, but they will have to contact the Grupeer support in order to confirm that said bank is covered by the EU anti-money laundering regulations.
Grupeer facilitates loans through so-called loan originators. These credit institutions acquire loans from borrowers and sell it on to investors through the Grupeer platform. They also take the initial responsibility for collecting repayments and forwarding it to investors.
Like many other P2P lending platforms, Grupeer provides a wide range of business loans. In addition, they also offer shares in development loans.
Development loans are loans provided to businesses during the early stages of a land development project. Usually they are relatively short-term loans intended to finance the first construction stage. By the second stage the property will have a higher market value, at which point the borrower refinances the project at lower costs.
Usually development loans are paying only interests during the grace period. By term end the entire principal is repaid in one large balloon payment.
Grupeer loans originate from a wide variety of European countries, which allows for a diversified portfolio. Currently loans are available from Belarus, Estonia, Germany, Latvia, Russia, and Norway, and the Grupeer team is working on expanding into more countries.
Benefits of investing in Grupeer
Grupeer offers up to 15 % interest rates and advertises a 14.25 % average return across all investors. This is among the highest returns on the P2P lending market.
Buyback Guarantee on All Loans
At the time of writing this review, no repayments have yet been delayed. Although this may change, which is when buyback guarantee is a safety net worth having.
In case of a delay in payment, a contract between Grupeer and the respective loan originator means that loan originator is obliged to buy back any outstanding principal as well as accrued interest. In addition, should a loan originator neglect their contract, Grupeer will take over these responsibilities, including the buyback guarantee.
Buybacks on Grupeer are put into effect after a loan is overdue by 60 days.
Some Grupeer loans are marked with a little blue circle. This symbol indicates cashback on investment.
When you invest in one of these loans, Grupeer pays a cashback equal to the specified percentage of your investment directly into your account.
Cashback is paid immediately after share purchase and is then available for re-investment or withdrawal.
Grupeer’s greatest disadvantage is that it’s a new platform, launched in 2017. Due to its short existence we don’t yet have much historical data to evaluate the platform’s long-term performance.
Grupeer prides itself in not having any unpaid loans, which is great. But more historical data would have been an advantage. Surely, we can’t blame them for being new, but it is (currently) a disadvantage.
Some features are also missing. A secondary market would be beneficial to anyone looking to liquidate their assets quickly. This is not currently available, but the Grupeer team expect to release a secondary market before the end of 2018.
I would also like to see a more comprehensive auto investment feature. Currently you can only set up the basics:
In the future I would like to be able to filter by country and loan originator. While is it possible to manually select loans, using the auto investor it likely the preferred method for most investors.
The Grupeer staff confirm that they are working on adding more options to the auto investor but can’t yet share a release date.
What distinguishes Grupeer from other platforms?
Grupeer offers high returns combined with buyback guarantee. They provide a diverse selection of loans in terms of geography and loan types, making it a good first (or only) platform. But it is also a good supplement to existing P2P lending portfolios, as they offer access to countries (Norway, Belarus, Germany) not currently covered by most other platforms.
In addition, the user interface is easy to use, and can be quickly set up and left alone to do its thing (generating passive income).