Value Nomad

March 30, 2020

Lenndy Review (Peer to Peer Lending Marketplace)

Lenndy Review, let’s take a closer look at this European Peer to peer lending marketplace offering prior issued loan rights.

Loan investments were almost exclusively left for the traditional financial institutions, mainly because of the capital and costs associated with it. In this Lenndy review, we look at a p2p marketplace that is giving you the opportunity to invest in loans already issued by their originators.

lenndy review

There are many types of investments you can put your money in. from real estate, commodities, bonds, stocks among others. However, most require a lot of money to be able to invest in.

Real estate, for example, is one of the most preferred methods of investments, however, it is too expensive to break into. Bonds and stocks on the other hand, may be too risky for the ordinary person without the extensive knowledge required.

That means there is less left on the table for the ordinary person who does not enough money or knowledge. But peer to peer is rising, slowly distorting the status quo.

Today, it is possible to get a loan without visiting a bank or any other traditional financial institution. Peer to peer lending has made it possible for people with extra funds to lend to other people in need of financing directly via a platform. Making one of the oldest financial instrument accessible for ordinary people.

Lenndy Overview

Lenndy is a peer-to-peer lending marketplace that was launched in 2016 in Lithuania. It later moved its operations to Latvia in 2017 and that is where it stills operates from. As a P2P loan marketplace, or ‘P2P Version 2.0’ according to them, they focus on the sale of already issued loans. Meaning by the time the loan appears on the online platform, the originator has already funded the loan. The borrower has received the funds and it is already earning interest.

This makes it possible for the investor to start earning interest after making an investment instead of waiting for the completion of funding for the loan.

Currently, the platform is working with three originators, two of whom provide services in Lithuania. First Finance, Simplefin, and Daily Credit that provides loans in Poland. Lenndy is registered in the Bank of Lithuania.

The loan originators are expected to keep 5% of the claim rights, otherwise known as ‘skin in the game’ to prove their commitment to the loans. Some additional safety measures are taken to ensure the loan is recovered including pledged assets, personal guarantees, and loan originators buyback guarantee. However, not all loans posted have a buyback guarantee.

Opening an account on Lenndy

To open an account on Lenndy, click registration or ‘begin investing’. A registration form will appear and you can choose to continue the process with Facebook or with Google. If you select ‘continue with Facebook’, Lenndy will receive your name, profile picture and email address from Facebook.

If you do not wish to use either of the two choices, enter your email on the form provided, set a password, choose your nationality, provide a phone number and referral code if you have one. The platform also requires you to choose your experience with P2P and agree to terms and conditions before clicking ‘register’.

The platform will send a confirmation link to your email, click on the link to set up your account. Among the details you need to create your profile include, name, country of residence, phone number and date of birth. The final step is to make a deposit into your account.

How to invest in Lenndy

Investing in the platform is pretty straightforward. You just need to click ‘loans’ from the top menu and the page will present all the available loans.

Click here to open an account at Lenndy.com

To view more information on the loan, click on the loan ID and a pop up with the loan details will appear. The additional information includes; loan type, repayment method, purpose, term, amount sold to the investors, collateral and images where applicable. Since not all loans are covered by the buyback guarantee, ensure there is a brown and white shield on the loan before you click invest.

There is also an auto invest option available.

Types of investment available at Lenndy

The platform deals with a wide range of business and personal loans including:

Invoice Financing

Invoice financing is one of my favorite types of P2P loan investments. Usually low risk, short term operations aimed at discounting invoices and promissory notes.

Mortgage loans

These are loans that are secured with property such as an apartment or a flat, such that in case of default, they can be sold to cover capital and interest due to investors.

Personal loans

These are high risk, unsecured loans with a fixed amount and repayment period. They have the highest risk although some are covered by buyback guarantee

Secured car loans

These are loans secured by the borrowers’ vehicle, in case of default, the asset is sold to cover the capital and interest.

Business loans

These are loans to companies that hold personal or business guarantees by the owners of the borrowing business

Lenndy Auto Invest Tool

The platform offers an auto invest option for investors who prefer a hands-off investing experience. To access the tool, click auto invest from the top menu.

You can customize it to select the loans that are suitable for you by setting criteria including portfolio size, investment amount, interest rate, term and buyback guarantee.

You can also select the preferred originator and type of loan. It is also possible to reinvest your earnings.

How much can you earn on Lenndy? (Lenndy Interest Rate)

The platform offers between 12% and 15% interest rate. Out of the 24.7m Euros invested, the 5900 plus investors have earned an average annual interest of 12.31%. since the interest rates are fairly uniform, weigh the risk of investing in loans with a buyback guarantee and those without.

The platform is free of any charges to the investors for all services. However, banks may charge you for transfers and earnings are liable to taxation.

Who can invest in Lenndy?

Both Individuals and entities can invest in Lendy. Individuals must be at least 18 years old and have a bank in the SEPA zone.

Lenndy Pros

  • Investments from as low as 10 euros per loan
  • Some loans are secured by Buyback guarantee
  • Competitive interest rates of up to 15%

Lenndy Cons

  • No formal secondary market
  • Selling your investment using the sell feature will attract a 5% fee

Lenndy Verdict

Lenndy is a great platform when it comes to peer to peer investing. It is easy to use and most importantly, it offers decent interest rates. It is a good option for beginners and investors who prefer investing automatically. However, ensure you check if the loans you invest in are covered by the buyback guarantee.

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 Debitum Network Review and our Grupeer 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 Lenndy or in any other peer to peer lending platform? Leave your thoughts and questions about this Lenndy review below.

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