Crowdlending with Bondster

This is a very small review of the Bondster crowdlending company. Actually, it’s just a small post about how I experienced my first investment through them.

Today I made my first (very) small investment on the Czech crowdlending platform Bondster. I recently heard of them and decided to see what they offer.

My first thought was it an opportunity to spread my crowdlending investments so they are not all placed in the Baltic region. Many of the other p2p lending platforms are located in that specific region, which makes my investments vulnerable if the economy there goes into recession or collapses. I do not see that happen but call me old school as I still believe in diversification.

The Bondster portal is owned by the Czech company CEP Invest Private Equity which is based in Prague, Czech Republic. Besides Bondster they also have other investment companies as OneProve, Leo Express, Macromoney, etc. in their portfolio.

Opening an account was very easy. They obviously required some documentation for who I am after having uploaded copies of my driving license and bank statement I was ready to make my first investment. I used Revolut to add some funds for investing as this is the fastest and cheapest way for me to make cross-border money transactions.

When I went through the investment opportunities I noticed that a major part of the loans is personal loans. And honestly, these are not among my favorites for two reasons:

1: I see them as slightly insecure if they are not backed by values as cars, real estate or similar.

2: And this might be a controversial standing – I do not appreciate helping people to obtain loans with an APR of several hundred percents. I ain’t no saint but to me, this is not an ethically correct way of doing business.

What people do with their money is up to themselves, but these types of loans are often aimed against the most vulnerable groups in society and I will not contribute to this with my money. Enough said about that issue!

Hence I decided to go for a business secured real estate loan with an interest of 7%. Not much but with an LTV of 47%, there is not much to say about that. On ACEMA’s homepage, this is called an American Mortgage loan (or non-purpose loan). It means the loan provider does not care what the loan is being used for. Maybe the development of the real estate, a new car….or?

The interest rate is however significantly lower for the loan taker with these loan types compared to personal loans. The loan is active as I could see they haven’t missed any payments yet (true, it says one is overdue but as payment date is today it might not be registered yet). Total installments are 93 and 26 are already paid in time.

The loan originator is ACEMA who is a strategic Bondster partner. They have operated on the Czech market since 2000 and is one of the major non-banking loaners. As you can see from the picture ACEMA has kept the first 5% of the loan. The remaining is open for investments and as you might have noticed the loan was issued in 2017 and is supposed to be fully repaid in 2027.

As mentioned, this is just a small post and I’ll revert with a far more detailed review when I have had time to see how this and future investments will develop.

If you want to invest with Bondster yourself you can receive a 1% cashback by using the promotion code 06383 when registering. The code should be entered in this field when signing up:

Please use this link for signing up with the 1% cashback campaign and enter the code: Bondster.

Stay tuned.