Grupeer is a great peer to peer business lending platform from Latvia. It offers both business loans and real estate development loans with an average return rate for investors of 14%.

Grupeer Highlights:

  • Launched: 2016
  • Headquarters: Latvia
  • Loan types: Business Loans, Development Loans
  • Loan terms: up to 4 years
  • Interest rates: 11-14%
  • Fees: no fees
  • Minimum investment: 10 EUR
  • Currency: EUR
  • Secondary market: no
  • Auto-invest: yes
  • Buyback guarantee: yes

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How does Grupeer work

Grupeer acts as an intermediary between investors and loan originators.

The loan originators are lending companies across Europe that offer loans to either people or businesses. The loans published on Grupeer are already pre-funded, so the investors earn interest from the first day they invest money into a loan.

Grupeer currently has a list of 15 loan originators, and most of them you can also find either on Mintos or on Viventor.

The loans interest rates are usually between 10% and 14%. Pretty often, new loan originators offer cashback campaigns, adding 1% extra when you invest in one of their loans.

All the loans have a buyback guaranteed policy. This means the lender will buy back from you the loan plus the interest owed if the loan has defaulted or if the payments are delayed by more than 60 days. (Recently they announced they might have in the future loans not covered by a buyback guarantee, but offering a higher interest rate.)

The minimum investment in each loan is 10 EUR. Also, all investments are in EUR currency.

A more in-depth look at Grupeer

Since it started in 2017, Grupeer managed to finance loans of around 60 million EUR. It currently has more than 16.000 investors on its platform, coming from 84 countries.

Social media footprint

Based on their Linkedin page, Grupeer has a very senior and experienced executive team:

  • Alla Kisika – CEO and founder of Grupeer, with more than 15 years of experience in management
  • Andrejs Fjodorovs – CBDO (Chief Business Development Officer) since 2019, with more than 20 years of experience in finance
  • Maksim Lavrinenok – CTO at Grupeer since 2017, with more than 20 years of experience in IT
  • Tatiana Kovtuna – Head of Marketing, with more than 13 years of experience in marketing and sales
  • Natalja Jevdokimova – Head of Legal since this year, with more than 15 years of experience
  • Tatjana Sporihina – Head of Digital Marketing since 2018, with more than 10 years of experience in marketing
  • Kalvis Vasks – Head of Business Intelligence since 2019; I like that they have this role and a dedicated business intelligence team; we should expect to see nice analytics and reports and graphics on Grupeer site really soon

You can follow them also on Facebook or Twitter, where they post regular updates.

Becoming a Grupeer Investor

Grupeer can only accept money transfers coming from countries in the European Economic Area and Switzerland.

Since all the loans are in EUR currency, I’m using my Revolut account in order to add funds to Grupeer.

Platform experience

You can filter the available loans based on loan originator, loan-to-value or available amount for investment. The available loans rates range between 10% and 14%.

grupeer loans

You might want to turn off email notifications after you invest in a few projects. For each loan you invested in, Grupeer sends you a different email saying “you just received a 0.13 EUR interest payment” or something like that.

Investing in development projects

Grupeer offers real-estate development project loans as a special type of loans to invest in. These loans are issued by Grupeer to different companies and then these are financed by the investors on the platform.

All the loans have a buyback guaranteed policy if the loan payments are more than 60 days late. The interest rates vary from 13% to 14%.

Auto-invest tool

grupeer autoinvest

I haven’t used the auto-invest much, as I like to invest manually in the loans I’m interested in. And my portfolio is small enough that it doesn’t need too much intervention.

The options offered are pretty decent, although it has some minuses. It shows 195 countries selected, even though the loans come only from around 14 countries. It would also help a lot if it would allow you to distribute your investments evenly across the selected loan originators, in order to diversify your portfolio and minimize the risks. Or the option to not reinvest in the same loans.

Secondary market

The link to the secondary market exists on the website since the first day I created my account (and probably it was there before too). Unfortunately, the page is empty and there is no secondary market on Grupeer.

Grupeer stability fund

This is a feature Grupeer started to promote more than a year ago and it’s still not available. Even though it’s not part of their next year expansion plans, I’m still looking forward for the day this feature will be available.

With the stability fund, you’d able to buy shares in a real estate property and then earn a stable income between 4 and 8% from rent. This would be great for long-term, lower-risk investments. You’d get lower returns than with the peer to peer loans but in the long run, this would be an excellent passive income option.

Grupeer risks

As with any other p2p lending platform, investing in Grupeer comes with many risks. Some of them are generic to peer-to-peer lending, while others are specific to Grupeer.

Before you think about investing in Grupeer, you should read this.

Platform risk

If Grupeer goes bankrupt, investors shouldn’t be affected, because it only acts as an intermediary between investors and the actual lending companies.

One risk that’s inherent to Grupeer though is the security risk. Your account is only protected by a password, as Grupeer doesn’t use 2-factor authentication to protect its investors’ accounts. So, make sure you don’t use a “123456” or “password” password and also make sure you don’t use the same password as on other websites.

Performance risks

The loans you invest in are covered by a buyback guarantee, so this means it doesn’t really matter if a loan defaults or not. What matters though is if a loan originator goes bankrupt because the buyback guarantee comes from the loan originator’s pocket.

Liquidity risk

There’s no secondary market or a way to sell back your loan before it matures. If you need to have access to your funds quick, Grupeer is not the right platform to invest in.

My portfolio:

  • Last update: September 2019
  • Started Investing: December 10th, 2018
  • Current value: 1316 EUR
  • Profit: 136 EUR
  • Average interest rate: 13.5%

My current portfolio consists of a series of development loans from Belarus and a few business loans from Russia and the Czech Republic.

I like the almost 14% interest rate on all my loans and the fact that all of them come with a buyback guarantee that covers the principal invested and the interest due.

The size of my Grupeer portfolio is pretty decent, so for the next few months, I’ll keep reinvesting the interest payments back into the platform.

Conclusions on Grupeer

Grupeer is one of the best p2p business lending platforms to invest in at the moment. Its main advantages are the high-interest rates, the buyback guarantee and also the track record. The platform has been around for 3 years now.

The only big problem it has is that it has no secondary market, and you can’t exit your investment before the loans mature.

Good selection of loans

Grupeer offers good interest rates on the available loans. The real-estate development projects are also interesting. Also, the buyback guaranteed policy is a feature that brings some peace of mind. The buyback policy also includes the missed interest payments for the loan period.

Good interest rates

14% interest rates are a pretty good deal. Combined with the buyback guarantee, there’s not much more I could ask for.

Auto-invest feature

The auto-invest feature needs lots of work in order to be usable. I can trust it to invest my measly interest payments so far, but I would definitely disable it before I add new funds to the platform. It just doesn’t diversify your investments enough because it invests into different loan parts of the same project.

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