Grupeer Review – P2P Investing
Grupeer is a European P2P platform, registered as a company in October 2016, and launched as an online platform in February 2017. As of December 2019, they have successfuly issued over 43M EUR in loans and can boast more than 21000 investors from all over the world.
Grupeer, as many other P2P platforms, in based in the Baltic countries, in particular in Riga, Latvia, and is a fairly large company employing more than 35 people.
Types of Investments in Grupeer
Grupeer is kind of a hybrid platform, offering both traditional P2P business loans and P2P real estate development projects.
These investments are divided in two sections on the website. Real estate is generally backed by higher loan-to-values but tends to offer slightly lower interest rates for longer periods of time. Business loans are considered a bit riskier but sport slightly higher rates. The platform offers buyback guarantees on the vast majority of their loans, and they appear to perform a good amount of due diligence in order to only accept loans that have a very high likelihood of being paid back.
Who can invest on Grupeer? Can non-Europeans invest?
Grupeer lets you invest as either an individual investor or a company. Generally, both companies and investors need to be european.
Individual investors are required to:
- Be of adult age (at least 18 years old)
- Being a resident of the EU or connected countries like Switzerland
- Generally, having a bank account in the EU or Switzerland
In some circumstances you can sign up as a company even if your bank account is outside the EU. In that case you will be asked for additional documents for know-your-customer rules.
As for companies, you can sign up as a representative for the company, so you will generally be required to provide documents proving your ownership/affiliation with the company.
Grupeer Loan Originators
Most loan originators on Grupeer are from the Baltic or Slavic countries. The platform generally does a very good job of keeping track of them, adding new ones, and performing their due diligence. Grupeer also provides a rating system similar to Mintos, so you can evaluate your investments based on interest rates and risk.
As of December 2019, these are the loan originators on Grupeer with their respective ratings, average interest rates, and country of origin:
Grupeer Interest Rates
The average interest rate for all projects on Grupeer, as of December 2019, is 13.18% according to their homepage. I must say it reflects very accurately the kind of rates you will actually get if you invest in a mix of several different projects.
On Grupeer you will generally get interest rates around 12-14% depending on the cashback campaigns and loan availability.
Grupeer Cash Drag
I haven’t had any problems investing my cash, as the platform has enough projects to absorb all demand for loans. This means your cash drag will generally be zero. I must say they have been doing a really good job lately in this regard, as cash drag is one of the most common ways investors get a lower return than predicted.
Is Grupeer Safe?
The safety of a particular platform depends on three variables: safety of the loan originators, buyback guarantees from the platform, safety of the company behind the platform itself.
Safety of Grupeer’s Loan Originators
Grupeer selects loan originators after a careful financial review of their ability to repay loans, their business models and their balance sheets. Loans might finance realization of a particular project, increase the working capital or serve for other purposes.
Grupeer Buyback Guarantee
At the moment, every single loan or project on the platform is backed by buyback guarantees. The buyback guarantee is used whenever a borrower is more than 60-days late on his payments, in this case the loan will be bought back by the loan originator. They will also pay any outstanding interest accrued during the late period.
Please note that as far as I can understand, there is no platform-specific buyback fund to cover you in case the loan originator itself goes bankrupt. This means that generally, your largest risk is the financial solvency of the single loan originator. Great care should be exercised to choose the loan originators themselves.
The platform has developed an auto-invest feature common to other P2P lenders. This feature is very handy to investors as it lets then automatically re-invest their funds with pre-determined interest rates, loan originators and durations. This effectively reduces your temporary cash-drag and reduces the time spent managing your money, resulting in a more passive investment, and higher yearly returns.
Here’s a screenshot of Grupeer’s Autoinvest screen:
Signup to Grupeer
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