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Best P2P Lending Platforms

best p2p lending platforms

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.

77 / 100

1

B-

Efficiency

A

Security

A-

Solidity

A+

Liquidity

A-

Diversification

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.

69 / 100

2

B+

Efficiency

B+

Security

C+

Solidity

B+

Liquidity

A+

Diversification

PeerBerry is a key platform in the P2P landscape, capable of offering large volumes of investments at attractive rates across a wide range of countries. PeerBerry has also demonstrated its ability to guarantee investors’ capital even in times of war, while offering a high level of liquidity. Even though the platform is profitable, an annual audit would be welcome to certify the financial reports.

67 / 100

3

C+

Efficiency

B-

Security

B+

Solidity

A-

Liquidity

A+

Diversification

Because of the liquidity of its market and the diversification provided by many lending companies, Mintos maintains an honorable position in this ranking. But even though Mintos has improved in terms of security, experienced investors don’t forget the large amounts of funds still in recovery, the pending payments, and the fact that the buyback guarantee does not apply to all investments.

62 / 100

4

B

Efficiency

A

Security

D-

Solidity

C+

Liquidity

B

Diversification

Thanks to the experience and professionalism of the loan originators (some being backed by AvaFinance Group), Esketit offer highly secured investments. Nevertheless, the rates are now too low as they recently decreased and some cash-drag still occurs. Esketit also needs to increase diversification and liquidity (impacted by speculation on secondary market) and to get their annual reports audited.

60 / 100

5

A-

Efficiency

B+

Security

C

Solidity

D

Liquidity

D+

Diversification

One the platforms offering the highest returns on investment with a rather good level of guarantee. Although the platform is regulated, which is a good point, they still need to find the economic balance in their business model. But many shareholders’ equity as well as skills and resources have recently joined the platform. More liquidity and diversification on their market would also be welcome in 2024.

60 / 100

6

A-

Efficiency

C+

Security

C+

Solidity

B

Liquidity

D-

Diversification

Swaper is one of the platforms that offers the most attractive rates in Europe (14% on all its loans and 16% from €25K invested). Backed by the Wandoo Finance group, the platform has resisted all crisis well so far (Covd-19, Ukraine). But Swaper still needs to improve in terms of market size with more investors and diversification with more loan originators, as well as being more transparent.

56 / 100

7

A

Efficiency

B-

Security

E

Solidity

C-

Liquidity

B+

Diversification

Income marketplace is among the platforms offering the highest rates in the P2P landscape with quite a good level of security. In addition, their market is very well diversified with many loan originators located in a wide range of countries. Nevertheless, Income marketplace still needs to improve the liquidity of its market but before all, they need to greatly strengthen their platform.

55 / 100

8

D+

Efficiency

B+

Security

B-

Solidity

C+

Liquidity

B+

Diversification

The financial performance offered by Iuvo is not so interesting compared to the other platforms considering its low rates low, some defaults on which the platform barely communicates and fees applied when selling and withdrawing. Nevertheless, Iuvo is well diversified and propose good level of guarantees for the loans and a commendable degree of security, but needs to improve its liquidity.

55 / 100

9

C+

Efficiency

C-

Security

A+

Solidity

C+

Liquidity

E+

Diversification

Twino is experienced and extremely solid, as the platform is regulated, audited by a renowned auditor and profitable, but loan originators have not so much experience and several still do not make profits. The rates offered are rather good but not secured enough and their market needs more liquidity and diversification with more short-term loans, higher volumes funded and wider geographical coverage.

54 / 100

10

B+

Efficiency

C+

Security

C-

Solidity

D

Liquidity

C

Diversification

Maclear is a very attractive platform in terms of returns on investment, especially with loyalty bonus, cash-back & temporary additional rates. In addition, this P2B platform is regulated and audited, it offers a secondary market and allows diversification in 4 countries. But Maclear is still young and is not yet profitable since its business model requires more volumes to fund and more investors.

53 / 100

11

D+

Efficiency

B+

Security

B

Solidity

C+

Liquidity

E

Diversification

Afranga offers an interesting model as the platform is backed by a single lending company called StickCredit enabling strong guarantee on loans listed. But although Afranga is a solid, regulated and profitable platform, the number of investors, the volumes funded as well as the rates offered are far too low for now. The platform should also greatly improve in terms of liquidity and diversification.

52 / 100

12

B-

Efficiency

C+

Security

C+

Solidity

E+

Liquidity

C+

Diversification

Lendermarket offers among the most attractive returns in P2P landscape but many loan originators are still not profitable and some do not provide audited annual reports. Considering the platform itself, investors are still waiting for 2022 audited annual report and a sustainable business model as profitability is still not there. A solution must also be found for the still important pending payments.

50 / 100

13

B

Efficiency

C+

Security

D+

Solidity

D

Liquidity

B+

Diversification

HeavyFinance is a regulated crowdfunding platform offering to finance agricultural activities, a key sector in Europe, backed by collaterals. But the platform is young and still needs to find economic stability and profitability attracting more investors thanks to high rates. And although HeavyFinance offers a high degree of diversification and a secondary market, the liquidity of its market needs to improve.

49 / 100

14

A+

Efficiency

C

Security

E+

Solidity

D+

Liquidity

E+

Diversification

Hive5 is a new platform growing quite quickly thanks to rates much above the average observed on the P2P marketplaces. But the platform needs to improve on all other aspects especially in terms of guarantee and security considering that the loan originators have little experience and are still not profitable. Hive5 should also think to include a secondary market and more loan originators.

47 / 100

15

C+

Efficiency

C+

Security

C+

Solidity

E

Liquidity

B-

Diversification

Lande is a regulated and audited crowdfunding platform that offers to fund agricultural activities with collateral in the form of mortgage assets. The platform is already profitable, while offering acceptable returns and security. Because of its business model, diversification is relatively good, with a variety of loans, although an effort needs to be made to ensure geographic diversity.

46 / 100

16

B+

Efficiency

C-

Security

C

Solidity

E+

Liquidity

E

Diversification

Indemo introduces an innovative financial product (discounted debts) offering potentially high returns. The platform is regulated and its annual report audited each year. Nevertheless, the platform is still young and needs to offer more geographical diversification as well as a secondary market (scheduled for Q4-2024). In addition, Tamarindo has to be audited (scheduled for August 2024).

45 / 100

17

C

Efficiency

D+

Security

B+

Solidity

D+

Liquidity

C-

Diversification

Viainvest is a regulated, dully audited and financially solid P2P platform with several years of experience and a large number of investors. The rates are interesting but the platform charge some fees for some functionalities and meet some issues concerning the buyback guarantee. Moreover, the loan originators don’t provide their financial reports and no proof of their profitability can be found.

45 / 100

18

B-

Efficiency

C

Security

C+

Solidity

D+

Liquidity

E

Diversification

Neo Finance proposes higher rates compared to most of other P2P platforms but with higher risks considering there is no buyback guarantee or collateral. Neo Finance is not a marketplace as the P2P platform is also the loan originator which leads to a low diversification. They are regulated, audited and profitable but still lack of enough investors. They should also really improve liquidity in the future.

43 / 100

19

B

Efficiency

C+

Security

E+

Solidity

D

Liquidity

E

Diversification

Nibble is still a small platform in terms of volumes funded although the rates proposed are much higher than those available on the P2P market. Moreover, the lending company behind Nibble, Joymoney is experienced and profitable leading to a qualitative guarantee level. Nevertheless, the platform needs to be strengthened, their market to be much more liquid and the portfolio more diversified.

40 / 100

20

B-

Efficiency

D+

Security

D+

Solidity

C

Liquidity

E

Diversification

Finbee is an experienced regulated and profitable crowdfunding platform that offers to invest in consumer and business loans in Lithuania at attractive rates. But only business loans are secured by a collateral and eventually some defaults in payments occur. Finbee should be more transparent with detailed statistics and improve greatly their liquidity as well as diversification during 2024.

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.