Investing P2P Reviews

Lenndy Review: P2P Investing With Attractive Returns

Lenndy is a P2P lending platform that offers a range of investment options. Here's our full review with Pros & Cons.
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Peer to peer lending (P2P lending) is growing into one of the biggest challengers to established financial institutions. Lenndy is a P2P lending platform that offers a range of investment options. Investors like to have access to the fast growth of the international economy, the fourth industrial revolution and big data.

Lenndy connects borrowers to lenders and offers investors attractive interest rates. Unlike many P2P lending platforms that focus on a specific kind of loan, Lenndy has a much wider reach.

P2p lending remains one of the most lucrative areas for investors and keeps growing. To be sure, P2P lending has risks. It is important to understand how a loan is structured, and what kind of options you have as an investor.

Let’s have a look at Lenndy, and what it can offer investors.

Lenndy at a Glance

Lenndy ReviewLenndy - Visit
Product TypeP2P Loans
Potential Return12-15%
FeesNo Fees / 5% on Buybacks
Min Investment€10
Investment TypesSecured car loans, Mortgage loans, Business loans & Personal loans.

Visit Lenndy

What is Lenndy?

Lenndy was launched at the end of 2016 in Lithuania and later moved its operation to Latvia. Lenndy is a peer to peer lending marketplace which enables potential investors with extra funds to lend to people in need of financing directly through its platform.

It’s simple to work with Lenndy’s platform and understand the way it works. The company partners with 3 loan operators, two of whom are providing services in Lithuania. First Finance, Simplefin, and Daily Credit, which are available in Poland.

Lenndy Homepage
Lenndy Homepage

These partnerships enable people to access various types of loans. Investors will have a very good idea of what they are investing in with Lenndy, and who is borrowing the money.

By working with good loan originators, Lenndy has taken a lot of the cost out of the P2P lending equation. The originators are experienced with gathering the necessary borrower data and passing it on to Lenndy.

Why P2P Lending?

If you have even taken out a loan from a bank, or have a credit card, you probably know that banks collect a lot more in interest than they offer to their depositors. Consumer lending is a huge business, and it is very profitable for banks.

In many places, person-to-person loans are illegal. While there are good reasons for this, the world of P2P lending overcomes most of the difficulties associated with small-scale lending. By cutting the bank out of the equation, investors are able to receive a much higher level of interest on their money.

How it Works
How it Works

Like any form of investment, P2P lending has advantages and drawbacks. When you invest via a P2P lending site, you will need to know a lot more about who you are lending to, and what kind of terms regulate the repayment of the loan.

All of this information is easy to access with Lenndy, and investors can easily create a P2P lending portfolio with this platform.

Lenndy Interface

Lenndy is working to offer an initiative, interactive interface and provide a pleasant user experience. Investors can navigate through the details on their website thanks to its easy to understand format.

Managing a platform with a high number of users can be challenging, but Lenndy seems to work well with no unnecessary delays.

The mobile version gives users access to investment information on a range of mobile devices. You are able to find all of the investment aspects before making any commitment.

How to open an account and start investing on Lenndy

Opening an account with Lenndy is quite simple and it doesn’t take much time. To sign up, you just need to fill in a few basic personal information like name and email address in the registration form.

  • Once you register, you will receive information about how to deposit money with the platform.
  • If you prefer a quicker process, Facebook and Google connections are also available. They will automatically access your name, profile picture, and email address.
  • The next step is email confirmation and your account is set up. Finally, you need to make a deposit. With the money in your account, you can start building your P2P lending portfolio. Choose “loans” on top of the menu and pick your ideal loan based on the Lenndy’s available loan list.

The loans on Lenndy aren’t generally available for a long time, as they are very popular. You may need to check every day to find loans that you like.

It’s suggested to check all the information and conditions of loans, before making an investment decision. You can find a pop up of the loan details at “loan ID.” These details will consist of: loan types, methods of repayment, purpose, period, amount sold to investors, collateral and photos if necessary.

Since the buyback guarantee does not cover all loans posted, make sure you check carefully the loan until you press invest. Once your preferred loan is chosen, you can invest your money. The platform takes from one to fifteen days to put your money to work.

Keep in mind that Lenndy only works with short and medium-term loans, so you won’t be waiting years to get your principal back. This may not be perfect for investors who want to make longer-term loans, which require less work to manage.

Auto Investment With Lenndy

An auto-invest option is also available for investors to invest automatically in the program. Simply choose the best investment strategy that fits your investment style. This option isn’t going to give you the same level of oversight, but it makes your work a lot easier.

Once there is an investment opportunity, the program must follow the chosen investment strategy. This way helps save a lot of time, as constantly checking whether there are suitable opportunities for investment takes time.

Types of Investments on Lenndy

Lenndy offers a wide range of available investments including:

  • Invoice financing: Invoice financing usually comes with low risks, short term payment discount operations, and contractual notes.
  • Mortgage loans: Mortgage loans are secured with real estate such as apartments or flats. If a default occurs, these properties will be sold to cover capital and interest.
  • Personal loans: Personal loans usually have higher risks despite being covered by a buyback guarantee. These are unsecured loans with a fixed amount and timely repayment.
  • Secured car loans: With these kinds of loans, borrowers can use their vehicles for collateral. In case of default, the asset will be sold to cover the principle and interest.
  • Business loans: Business loans are designed for companies that hold personal or commercial guarantees from the owners of the loaning company.
Some of the loans available to invest in
Some of the loans available to invest in

Lenndy Features

Like most P2P lending platforms, Lenndy offers investors a few options to make buying debt a little easier. In addition to the type of loan, Lenndy has a few loan originators it works with and some handy tools to make P2P lending a smooth process.

Auto-invest

Lenndy offers an auto-investing tool for investors who are more into a passive investing experience. It’s not difficult to access this feature. You may want to consider if auto-investment is a good idea, as you will be trusting the platform with your money.

If you like this option you will be able to customize the: portfolio name, portfolio size, investment amount, total loan amount, selective term, interest rates, and buyback guarantee.

You can also make decisions on a loan-by-loan basis. Although this option will be more labor-intensive, you will look over every loan that is made with your money.

Buyback Guarantee

Lenndy offers a buyback guarantee for many of the loans it brokers. This means that if the borrower fails to service the loan, you will be able to sell the loan back to the originator. A buyback guarantee removes a lot of the risk from making loans and is a nice feature for investors who are willing to accept a lower interest rate in exchange for added safety.

Assessing Risks

Since many of Lenndy’s loans include a buyback guarantee, the risk of total loss is low. However, investors still need to prepare to face the risk of default for loans without Buyback Guarantee. Additionally, the buyback guarantee shifts the risk to whoever is offering to buy the non-performing loans.

Detailed Loan information
Detailed Loan information

Lenndy Pros & Cons

Every peer-to-peer lending platform has its own pros and cons, and Lenndy is no exception.

Pros

  • The website is well-displayed and easy to use. Investors can view everything of the projects such as country, loan originator, term, loan type, loan amount, interest, collateral, the days left until the end of a project, the amount of money that is still needed for that project.
  • The registration process is quick and easy. You can sign in using your email or Facebook account or Google account. You don’t have to verify ID information until you withdraw money. The verification process takes only two days.
  • Most investments are protected by a BuyBack guarantee. This means that if the borrowers are not able to pay their loans on time, a counterparty will compensate investors, and investors are unlikely to face catastrophic losses.
  • Investors do not need to have a lot of money to invest in Lenndy. The platform has a minimum investment amount that can be as low as 10 euros.
  • Lenndy also allows investors to invest a small amount of money in different projects at the same time.
  • Lenndy offers competitive return rates, the rates range from 11% to as high as 15%.
  • Since it launched in 2016, the default rate is 0%.
  • Lenndy has a feature called auto-invest. Investors can adjust their preferences and create portfolios and the company will invest based on your preference. This is for investors who want passive income without making too many moves.

Cons

  • Lenndy does not have a formal secondary market so it is quite difficult to sell or buy funded loans. If investors want to sell loans, Lenndy will charge the fee of 5% per transaction. However, they are trying to reduce the rate to 3%. Investors cannot trade loans outside the platform.
  • Like other peer-to-peer lending platforms, borrowers who take loans through the platform will risk a lower credit rating. This will decrease the chance that they can borrow a conventional loan from a bank.
  • The investment period of Lenndy is only short or medium term. If you are looking for an investment from 12 to 36 months, this is not the platform for you.
  • Some nations do not allow peer-to-peer lending. Therefore, some borrowers or investors cannot apply for a peer-to-peer platform.
  • Although the current default rate on Lenndy is 0%, deposits are not guaranteed by a government or insurance.

Is P2P Lending Right for You?

P2P lending is a great option for investors who want a more diversified portfolio, but it is important to understand that it has grown in a time of low-interest rates, and very accommodative monetary policy.

Central banks have been easy on the markets for the last decade, and this has likely helped P2P platforms produce great-looking default statistics.

The future is unknowable, and we may see an uptick in market volatility at any time. Keep that in mind if you decide to enter the P2P loan market, and make sure that you have a well-diversified portfolio. Any debt portfolio should have a wide range of counterparties, and low-risk debts as its base.

Conclusion

Lenndy is a formidable competitor in the P2P lending market. With many features such as the buyback guarantee and auto-deposit, it has joined the race to become one of the top peer-to-peer lending platforms in Europe.

Using P2P lending as an investment option is a good way to gain far more than you would with other forms of debt investment. It is very rare to earn more than 10% from a bond, as major banks tend to keep the high yielding offerings for themselves, or sophisticated investors.

Lenndy could be a good addition to your P2P lending mix, as it offers a range of loans and many options for investors. It is nice to see the buyback guarantee, but keep in mind this feature isn’t a safeguard against 100% losses (the counterparty could default).

Visit Lenndy

Lenndy

8.6

Ease of Use

9.0/10

Fees

9.0/10

Reputation

8.0/10

Customer Support

9.0/10

Design

8.0/10

Pros

  • Easy Registration & Good Platform
  • Buyback guarantee on loans
  • Auto-Investing Option
  • Invest from 10 Euro
  • Returns up to 15%

Cons

  • No Secondary market
  • Short / Medium Term Loans Only
  • 5% Fees to Sell Loans Back
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Nicholas is an experienced Finance Journalist who has written for a number of prominent online publications. He grew up in Ann Arbor, Michigan with a father that would read him the Wall St. Journal along side of other bed-time fare. He has traveled extensively, and been lucky enough to study a changing global economy in person. Nicholas spent many years in the Southern Cone of South America, sometimes in the middle of the countryside where livestock starts its journey to all points of the globe. Today he is thoroughly bemused with the stance that Central Banks have taken in the wake of the 2008 meltdown. There is no telling what will come out of the global financial system next, but he is glad that he lives somewhere that gold can be bought and sold readily! nick@moneycheck.com

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