Best P2P Lending Platforms
- Written by
- Just P2P
- •
- Updated April 3, 2024
Best P2P Lending Platforms
The best P2P lending platforms can be identified along 5 criteria : return on investment, security of loans, platform solidity, liquidity of their market, and their degree of diversification. Depending on the importance they place in each of these criteria, investors can identify the P2P platforms that fit their financial objectives.
The methodology used to rank the best peer-to-peer lending platforms in Europe is based on a total of 50 measurable indicators, regularly updated. The data is used to assess the platforms according to the 5 criteria defined above (performance, security, solidity, liquidity, diversification), rated from A+ (maximum score) to E (minimum score). Finally, an overall rating out of 100 is attributed to each platform.
Even though Robocash rates are not so high as few months ago, the platform offers interesting returns on investment. Moreover, Robocash is financially stable as it is backed by UnaFinancial group allowing the platform to benefit from an efficient network of loan originators even though a little bit more diversification would be welcome. Finally, the liquidity observed on Robocash is simply remarkable.
Criteria used to rank the Platforms
For each P2P lending platform, as for any other class of assets, we have assessed the same 5 criteria: performance, security, solidity, liquidity and diversification. Each of these criteria was measured against around ten quantifiable and verifiable indicators. Without revealing the exact methodology, here are the main data analysed.
Financial performance
The financial performance of each platform is assessed largely, but not exclusively, on the basis of the returns offered. Added to this, there are also loyalty programmes with preferential rates, one-off promotional offers and the cashback offered upon registration. Other criteria are also taken into account, such as cash-drag and any defaults observed in the past.
Security of loans listed
The security of the loans is assessed on the basis of the level of guarantee offered by the lending companies and their track record in P2P lending, but also the past experience of these companies, their financial reports, the quality of the audits that accompany these annual reports, the reputation of the auditor, the compliance with certain international accounting standards and other more anecdotal criteria.
Solidity of the platform
The strength of the platforms is assessed on the basis of the regulations and accounting standards to which they are subject, their annual financial reports, their financial structure and if they are backed by a financial group, their stability over time, their past experience and the total number of investors they have on board.
Market liquidity
Platforms are market places where investors want a certain level of liquidity, depending on their time horizon. This liquidity is assessed in terms of the investment volumes offered in the short term, the presence of a secondary market and any constraints on resale, the total volumes funded each month, the total number of investors and other less important criteria.
Level of diversification
The degree of diversification of P2P lending platforms is measured in terms of the number of loan originators, their geographical distribution and the diversity of loans offered for investment (type, duration, currency). We have also included the tools that platforms make available to investors to monitor and diversify their investments.
Frequently asked questions
Which is the best P2P lending platform ?
The best P2P lending platform is Robocash as this financially solid platform proposes a high level of security for the investments listed. Moreover, the returns on investments are in the upper average observed in the P2P landscape knowing that their market is at the same time very liquid and diversified.
Which P2P lending platform is best for beginners ?
The best P2P lending platform for beginner investors is Swaper which is simple to use and fully automated once the criteria are defined. Investors starting they journey can invest from only 10€ and get returns between 14% and 16%. They benefit from a buyback guarantee during which they receive interests.
Which is the safest P2P lending platform ?
The safest P2P lending platform is Robocash as the loan originators offer several guarantees, they are duly audited by renowned international auditors and highly profitable. Although Robocash is not regulated, the platform provides annual reports and audits, it is backed by an international group (UnaFinancial) and make profits since 2017.
Which P2P lending platform has the highest rates ?
The P2P lending platform with the highest rates is Income marketplace which propose investments at 15% and above with buyback guarantee. Although the platform does not have a loyalty program, investors receive a cash-back upon registration and currently Income marketplace does not have any cash-drag which would lower the rates.
How can investors evaluate P2P lending platforms ?
Generally, investors evaluate P2P lending platforms mainly on their financial performances and often forget to assess the risk. Reason why it is important to make due diligence on the security of loans and the financial soundness of the P2P lending platforms, as well as to the market liquidity and diversification.
