Lendermarket is an Estonian peer-to-peer (P2P) lending platform that lists short-term loans with a duration of 30 days and interest between 12% and 14% per annum. All loans are secured by a 60-day buyback guarantee. The minimum deposit is only 10€, and you can diversify your investments across five countries. Learn more about this newly founded P2P lending platform in our latest Lendermarket review.
- 15/09/2020 - Lendermarket offers a 2% cashback bonus on all new deposits until the end of October 2020.
- 22/05/2020 - Lendermarket updated its terms and conditions without prior notice.
- 20/05/2020 - Many investors report delays of up to 70% of their portfolio.
Lendermarket in Numbers
Before you start investing in any of the P2P lending platforms, you should have a look at the platform’s statistics. Statistics often help you to decide whether you should invest in a platform and how much.
Check the table below to see whether PeerBerry is the right fit for you.
|Investor's earnings:||+ €100.000|
|Total loan value:||+ €10 M|
|Amount of investors:||+ 1,300|
|Loss of investor's money:||0%|
|Average portfolio size:||€3,800|
|Latest financial report:|
Young P2P Platform
Being new in the market makes the position of the platform rather difficult, as it’s hard to come up with a valuable unique benefit that isn’t already being offered by other platforms.
Many P2P investors tend to invest in more established platforms with a longer track record, which limits the potential investor base interested in joining Lendermarket.
The platform does not have a dedicated statistics page yet, which is why we reached out to Lendermarket and requested additional information.
Average Portfolio Size
Currently, there are more than 1,300 investors on Lendermarket. The average portfolio size on this P2P lending platform is €3,800, which is close to Swaper, Twino, or doFinance that offer a very similar product.
As the platform was only founded in 2019, a financial report hasn’t been published yet. Here is the link to the 2018 annual report of the Creditstar Group, which is the parent company of all loan originators and also the guarantor of the buyback guarantee on Lendermarket.
2% Lendermarket Cashback Bonus
Lendermarket offers monthly cashback campaigns. The P2P lending platform offers a 2% cashback bonus on all of your deposits until the end of October 2020. The cashback bonus will be paid in full within 7 days after the campaign period.
Head over to our cashback bonus page to get an extra investment boost.
Lendermarket markets itself as a cross-border P2P marketplace. This is, however, valid only for investors that reside in the EEA (European Economic Area) and have a European bank account in their name.
Lendermarket also supports corporate accounts if you want to invest with your company. The registration process is straightforward. You only need to fill out some contact information and your personal ID card number. After you have submitted the registration form, you need to verify your email address and proceed to the biometric identification.
Online identification itself takes less than five minutes. You will be asked to take a photo of your face as well as your ID document. According to Lendermarket, account verification takes around 30 minutes during business hours.
As soon as the platform activates your account, you can transfer funds to your investor account. Currently, you can only deposit your funds with the SEPA transfer. The deposits, as well as withdrawals, are being processed within three business days.
Risk and Return
Your investment isn’t protected by any collateral or mortgage. Like other P2P lending platforms, Lendermarket also offers a buyback guarantee.
If the borrower delays its payment for more than 60 days, the loan originator will buy back your investment for the principal loan amount.
At the time, as we conduct our due diligence, the platform claims on their website that the buyback guarantee covers penalties for delayed payments. We could not find any concrete information about the exact fee, so we had a look at the loan originator details for Creditstar on Mintos, and we found that Creditstar does not pay any delayed fees to the investors.
We confronted Lendermarket with our findings, and here is their reply: “This is something we should change on our website, as Creditstar doesn’t pay penalty fees to investors.”
We appreciate the honesty of Lendermarket’s support. At the same time, it’s sad to find more information about Creditstar on Mintos as compared to the actual P2P platform, which is owned by Creditstar itself.
Lendermarket’s buyback guarantee does not come with any significant benefits as compared to the terms of buyback guarantees on other platforms.
The diversification of your portfolio provides better protection than any buyback guarantees. On Lendermarket, you can invest in loans by the Estonian loan provider Creditstar Group. While you can invest across multiple loan originators, at the end of the day, all of them fall under the Creditstar Group, which limits your diversification efforts.
Skin in the game
All loan originators invest 5% of their own money into their loans. Unfortunately, this information is nowhere to be found on Lendermarket’s website, and we needed to request it from Lendermarket.
As mentioned before, the same applies here, as well. You will find more information about Creditstar on Mintos than on Lendermarket. Similarly to Mintos, Lendermarket also does not invest any money in loans listed on its platform.
Is Lendermarket Safe?
Lendermarket is a very young platform. Recent negative events, caused by fraudulent P2P lending platforms, raised certain suspicious attitudes towards newly founded platforms. While there is never a 100% guarantee that a P2P lending site is safe and trustworthy, there are certain metrics that you can look at to access the quality of the platform by yourself. We looked at the team and read the terms and conditions of Lendermarket, and here is what we found.
Who leads the team?
There is no information about the management that’s behind Lendermarket. The platform confirmed that currently, there is no CEO as the platform is too small. Strategic guidance for the business is given at the shareholder level.
Ok, so who are the shareholders?
Who owns the platform?
It’s incredibly tough to find any information about the owners or shareholders of Lendermarket. We had to read the entire document about platform rules, to find out that it’s signed by Tauri Jaanson as the director and Veiko Väli as a secretary. Both of those people do not share any information about their roles at Lendermarket on their LinkedIn profiles.
We requested further information from Lendermarket and here is what we found out:
Who is the legal owner of Lendermarket?
“Lendermarket Limited is fully owned by SA Financial Investments OÜ – an Estonian holding company, that is in turn fully owned by Mr. Aaro Sosaar - the CEO of Creditstar Group. He is the ultimate beneficial owner of Lendermarket Limited.”
Where can investors visit the offices of Lendermarket?
“Lendermarket’s office is in Estonia which is where the core team is located.”
Again, we had to follow-up to find the exact location.
“Lendermarket is sharing the office-space with Creditstar on Lõõtsa 5, 11415 Tallinn.”
What is the connection between Heimondo Limited and Lendermarket?
“Heimondo was the project name that the founding team of Lendermarket chose when the brand name was not decided. This team registered a company in Ireland called Heimondo Limited, which eventually was renamed a Lendermarket Limited. In other words, Heimondo Limited was the first name the legal entity had, and Lendermarket the new name it adopted.”
Are there any suspicious terms and conditions?
It’s incredibly hard to find any information about Lendermarket’s team, which makes it very hard to justify any investment activity on this Estonian P2P lending site. Why would investors want to invest money on a platform where there is no information about the team?
According to clause 8.10, investors should do their due diligence about any loan originators on Lendermarket. Also, investors accept that the Lendermarket does not question any information received from the loan originator.
This means that the platform does not do any due diligence of the loan originators but accepts all data on an “as is” basis.
We reached out to Lendermarket and asked for a comment:
“As in every agreement, all parties have rights and obligations. The Rules of the Platform are no exception. All parties must conduct due diligence before entering the contract and throughout the duration of it. Lendermarket is committed to protecting investor’s interest and carrying out due diligence in its operation, however, this is not incompatible with investors conducting the corresponding assessment of our financial service.”
Like any other P2P lending site, the platform distances itself from any liability for loss in connection to investor’s activities on the platform.
In case the platform presents inaccurate data, they aren’t liable for it. This means that as an investor, you invest based on information that no one is responsible for.
The clause 18.3.2 is quite confusing. Here is Lendermarket’s explanation:
“The clause 18.3.2 states that Lendermarket is not liable for the use the investors make with the content displayed on the website. Lendermarket is liable for the content on their website, however, it’s not liable for the use users will do of it.”
In 12.1 you state that the lenders might lose their money if the borrower does not pay back the loan - does this not contradict the buyback guarantee?
This clause is so confusing that even the legal team of Lendermarket could not give us an answer. Omayra Roig from Lendermarket assured us that they would make it more comprehensive.
Do investors have access to individual loan agreements?
Verified investors do have access to loan agreements. You can view the PDF file when setting up your Auto Invest. We have reviewed the document, and here is what we found out.
Clause 3.3.4 - 3.3.5 Loan Agreement
Are you getting a headache when reading this? You are not alone. We asked Lendermarket to explain this to us.
Different clause, same response. The legal team could not find an answer to this.
Clause 6 - Loan Agreement
There is one positive aspect worth mentioning. Every investor has the right to cancel their auto investments within 14 days of setting up their Auto Invest.
Note that you need to follow a specific process to do so. This is one of the few aspects that many other P2P lending sites do not add to their loan agreements.
Other than this clause, the contract is very standardized.
Most of the terms and conditions provided by Lendermarket do not represent any protection to the user. As an investor, you have to accept that you might lose your investments as the platform itself does not provide any guarantees. Lendermarket’s liability of the information on the website is also questionable.
There is no public information about the owners or anyone apart from the business development manager Omayra Roig.
Compared to other P2P lending sites that offer similar services, Lendermarket’s transparency is very poor.
Potential Red Flags
- Terms and conditions are not comprehensive.
- It is not obvious who is behind the platform.
- Information about Lendermarket's loan originator on their website isn't sufficient or accurate
In terms of usability, there isn’t much to expect either. Investors can invest manually or set up an Auto Invest.
The Auto Invest allows you to set up the total amount of your automated portfolio as well as the maximum amount you are willing to invest into one single loan. The minimum investment is €10.
You can also activate the option to reinvest your earned interest and invest multiple times in already invested loans.
It’s not recommended to invest in already invested loans as this harms your diversification.
Furthermore, you can set up the loan interest as well as the loan term. Don’t forget to include the countries and activate the buyback guarantee. Before you submit your settings, read the loan agreement and buyback agreement, so you know what you are signing up for.
Lendermarket does not offer any other features. If you want to request data for your annual tax report, you cannot directly download them from the platform but request it for the specific period via email@example.com.
While European P2P lending sites that list short-term loans usually do not offer many features, they are generally more user-friendly than Lendermarket.
At this point, you probably noticed that Creditstar is listing loans on Mintos and Lendermarket, so we asked Lendermarket:
How is it different investing on your platform in loans from Credistar as compared to investing in Creditstar loans on Mintos?
“One of the advantages of investing in Creditstar’s loans in Lendermarket is having less risk and exposure than Mintos. Currently, Lendermarket focuses only on loans originated by Creditstar’s operating entities, while Mintos has lots of originators. We’d like to think that we can provide better Investor Support and communications via Lendermarket, by being more focused on a single partner. The loans have a shorter term, which is highly appreciated by investors and higher interest.”
Ok, fair enough. Investors should know that there are always two sides to a coin. While Lendermarkets reasoning makes sense to a certain extent, the added diversification that investors have on Mintos outweighs the logic easily.
Some investors on Lendermarket reported that a significant part of their portfolios is often delayed. While it is common to have delayed payments when investing in payday loans, it’s not common to have 50% of the portfolio delayed.
The Buyback Guarantee buyback guarantee indeed covers accrued interest, there is no late payment fee paid by the borrower (or at least the loan originator does not forward it to the investor).
A similar P2P lending site that lists short-term loans might be a better option as most of the loans are actually repaid on time, and the buyback guarantee also covers late payment fees and accrued interest.
While the liquidity on Lendermarket is better than on platforms where you typically invest for longer periods compared to direct competitors Lendermarket certainly has room for improvement.
We only have been in touch with one person - Omayra Roig. She has always been responsive and professional. Also, her answers were thorough, and she addressed all our questions.
A quick research about Lendermarket’s review did not yield any valuable results. The only positive reviews on Trustpilot are currently from other P2P bloggers that promote the platform.
While we cannot confirm any negative experience with the support we received, we suggest contacting them by yourself to create your own opinion.
Lendermarket Review Summary
Lendermarket is a good option for you if you want to invest in consumer loans from Creditstar. Your investment on Lendermarket is backed by a 60-day buyback guarantee. Note, however, that due to the young age of the platform, the diversification options are rather limited.
Main takeaways from our Lendermarket review:
- Young P2P platform for loans from the Credistar Group
- Limited diversification
- Confusing terms
- Small team
If you decide to give Lendermarket a try, do your due diligence and start investing with only a small amount to get familiar with the platform.
Keen to invest on Lendermarket?
Does Lendermarket offer a buyback guarantee?
All loans on Lendermarket are secured by a 60-day buyback guarantee, provided by the finance group Creditstar. The buyback guarantee covers accrued interest, however, it does not cover late payment fees.
What is the minimum investment amount on Lendermarket?
The minimum investment amount on Lendermarket is only €10. Investors need to be at least 18 years old, reside in Europe, and have a European bank account to invest.
Does Lendermarket offer an Auto Invest?
Lendermarket offers an Auto Invest feature, which allows investors to automate their investment strategy.
Are there enough loans available on Lendermarket?
The availability of loans on Lendermarket changes depending on the current market situation. As we write our Lendermarket review, there are more than 1,200 available loans.
|Address:||Coliemore House, Coliemore Road, Dalkey, CO Dublin, Ireland|
|Phone:||+44 203 966 2222|
|Opening Hours:||Weekdays from 9AM to 5PM|