Flender Review: this article will introduce you to a fast-growing peer to peer lending platform and help you analyze its key functionalities
Are you looking for a new investment option? Or interested in diversifying your investment portfolio? Then, you should definitely read this Flender review. In this review, we will guide you through the process of investing in this platform and help you understand why this platform is perfect for you.
Flender was founded in 2015 with a goal to support Irish businesses and investors together while ensuring the interest of each. To achieve their goal, they created a safe environment where both borrowers and investors will be benefited. The company is registered in Ireland.
The platform offers a very high return to the lenders. Lenders can earn an interest rate of 10% or more invested in this platform. And the plus point for the lenders is, they don’t need to pay any fee to invest.
Flender is growing very fast with 6338 active lenders and has already invested €7.49 million in Irish businesses (2019). Additionally, this platform has created 405 job opportunities. The main factor that attracted so many investors to invest in Flender is its competitive average return rate of 10.4%. The numbers clearly show the potential Flender has to offer to the investors.
Let’s learn about this platform in detail, starting with how to open an account.
Opening an Account on Flender
Opening an account on Flender is very easy and it can be done within a few minutes. To open an account, first, go to the ‘Get Started’ page. Then, select the type of account and fill in your first and last name.
After that, choose your account password and provide a valid email address. After confirming your email address this platform will ask you to provide your personal information and current address. Once you finish these steps, your Flender account will be created.
How to invest in Flender
After completing the registration process, you need to add funds to your Flender account and fill in the KYC form. Then from account management page select ‘Marketplace’ to view the list of loans you can invest in.
Flender offers a feature called ‘AutoFlend’. In the latter part of the article, we’ve discussed how you can invest in this platform using the AutoFlend tool.
Types of investment available at Flender
As an investor, you can lend to companies, sole traders and partnership seeking loans using Flender. This platform allows its investors to lend from €50 to €150,000 on each loan request. It recommends investors to create a diverse portfolio to spread risk across a range of loans.
Flender carefully reviews all the potential borrowers before listing them and are secured with the director’s personal guarantee and a security deposit.
Flender AutoFlend Tool
One of the amazing features Flender offers to the investors is their auto invest tool AutoFlend. Using this tool investors can save a lot of time. This tool allows investors to invest automatically on the available loan options.
This tool is particularly designed for busy investors so that they can set certain criteria and let AutoFlend do the lending job for them. AutoFlend creates a diverse portfolio and then divide the invested money to a range of loans that meet up the investor’s preferences.
How much can you earn on Flender
How much you can earn on this platform depends on the amount you have invested and the annual rate of return offered by the loan you have invested in. Flender currently offers a 10.4% average rate of return. The interest rate varies depending on the risk associated with the investment options.
To receive the benefits of compound interest, investors simply need to reinvest the monthly repayments received from a loan into other loans.
Who can invest in Flender?
To become an investor in Flender you must be at least 18 years old and have a valid bank account. In addition, you need to have a valid personal document that can be a valid passport or a driving license.
Investors can invest an amount starting from €50. Therefore, lenders with a small amount of capital can invest in this platform as well.
- Offers excellent rate of return
- Very low default rate, only 0.2% (2019)
- Investors don’t need to pay any fee
- Doesn’t offer buyback guarantee
Flender is a great peer to peer lending platform for experienced investors because of many available loans offering high rate of returns and its diversified investment options. Additionally, Flender does not charge any fees to lenders and tax is not deducted from lending returns. Therefore, investors get the whole amount they earn.
As no investment option available in this platform offers buyback guarantee, it is not a very good platform for new investors. However, if you are experienced enough to analyze the risk associated with each loan, you should definitely consider investing in Flender.
Other Crowd Investing Resources
For those looking for other similar peer to peer platforms to invest, you may want to read some of our other reviews. There are many peer to peer lending and investing platforms currently available, and you can diversify your interest income by using several of them simultaneously.
You can consider some other peer to peer companies checking our Finbee Review and our Debitum Network Review. Check our post on the best peer 2 peer lending platforms in Europe, and the best real estate crowdfunding platforms in Europe.
Are you already investing in Flender or in any other peer to peer lending platform? Leave your thoughts and questions about this Flender review below.