In This Crowdestor review we will go through everything you need to know before investing in this P2P platform. Crowdestor is one of the platforms that is growing in attraction for each day now. With the interest averaging at 15% and somtimes projects up to under 30% they are one of few platforms with this high interest for investors. More then 11 700 investors are registered already and together they raised funds for loans of over € 31 000 000. (updated August 2020)
They list projects towards Real estate, big businesses and startups in different categories. They even have Game developments and Movie projects sometimes which I never seen before on P2P platforms, which is exciting 🙂
How’s the interest for investors on Crowdestor?
The interest rate on the projects listed at Crowdestor is on the top compared to other P2P platforms. They list that the average interest rate for the projects is at 15% in March 2020.
You can find loans to invest in from 11% interest today and some have been up to 36% in the past. I would say normal is to find projects at between 11% – 20%.
Also some of the projects can be listed with an extra bonus repayment if sales go better than expected after the project finishes.
They have a project now for making the movie Warhunt. If this project gets funded it gives you first 18% interest over 18 months. Then a bonus up to 12% extra if movie sales brings in enough money. This is all explained in the project sites where all the information is pointed out when a project has a bonus connected to the loan.
The platform of Crowdestor was up and running around December 2017. They operate from Tallin in Estonia like most P2P platform in Europe. It helps out that Estonia has a friendly view and also regulations towards P2P platforms of course.
Crowdestor was started by the CEO Janis Timma and Co Founder Gunars Udri which both are still managing the day to day operations.
They have more than 17 projects already finished and repaid to investors and not one defaulted loan so far. This is a good track record even if they only been operating 2 years. On top of that 72 projects is funded and making interest repayments right now to investors. 4-6 projects are still available to invest in not fully funded yet as of February 2020.
What type of loans can you invest in?
Crowdestor is careful when selecting which companies and projects they add to their platform. Important note is that Crowdestor also goes in as financiers or developers in most listed loans. They want to make sure they represent projects that is financially doable and can be trusted with it’s securities connected.
The loan period of these projects vary everywhere between 2-24 months.
They have listed everything from small real estate projects to bigger business developments. But they also take in other interesting projects like business loans to Festival service providers, Movie shoots and Game developments and many more.
It’s not often you see projects like this on P2P platforms so that’s diversification if anything 🙂
The size of the projects is normally between €100 000 and up to €1 000 000. These projects get funded fast since they usually list only a couple new once each month.
Projects I have invested in on Crowdestor
After a long time I finally got invested on Crowdestor and their P2P platform. I was lucky enough that they announced a new project the day before my funds arrived that still was open for funding.
This project looks promising and has high interest so I jumped in with €1000 to start with.
The project is: CONSUMER LOAN PORTFOLIO ACQUISITION. It has a loan period of 12 months and gives an astonishing 24% interest for investors. This project pays out interest monthly which I prefer, so that’s nice.
You get all the information needed for the projects you choose to invest in. First you get an overview on the Loan information, Interests and Securitys connected to the loan:
And you can easily see the repayment structure of the amount you invest at projects on Crowdestor. Like the printscreen from this project is showing below for the Consumer loan portfolio acquisition:
They also provide you with information about the project and the borrowers, usually this is a couple of pages long with everything from numbers to company information and details around the project.
Here below you can see a part of the description for CONSUMER LOAN PORTFOLIO ACQUISITION.
Repayment structure on Crowdestor projects can be different
When you pick the project you want to invest in you should check the loan description page for how the interest and loan principal is being repaid. It can be a little different from other P2P platforms that always repays interest to you each month.
At crowdestor the borrowers can set up different repayment structures depending on the project. Some pays you interest from the first month and every month until the period is finished with the repayment of loan principal for the whole loan in the last repayment.
If you take a quick look at the printscreen above of the project NOI retailer in Riga, you can see it’s not paying anything the first 3 months. Some of the projects that is 12 months or more they can do it in a different way though. Usually they keep the interest payments for the first 3 – 6 months and pay it out in bulk at month 3 – 6 or the end of the loan period together with the principal. And from month 3-6 you get monthly interest for the rest of the period each month ofc.
Platform and website of Crowdestor
Crowdestor have a simple and easy website to navigate on. You have all the information you need to find there in the profile when you’re logged in. You can easily find your own investments listed there and follow the progression or if you need to do changes to the account and so on.
The website is available in English, German and Spanish for now which is a nice touch and not just go for English.
Right now since the end of october 2019 they are upgrading the website so when they are finished we will see what extra features they added 🙂
Crowdestor review – Who can invest?
Everyone over the age of 18 can invest in Crowdestors platform as long you have a bank account in Europe or an EEA connected bank. You will have to provide this information when registering the account and want to do a transfer.
How to open an account and invest in Crowdestor
It’s really easy to open an account at Crowdestor. It takes you around 4-5 minutes to finish everything and then just wait for approval. Under the picture you will see a quick explanation on what steps to go through.
Just go to Crowdestors website, then you click on Register/login in the top right corner. *If you register through one of the links in this review you will get an extra bonus of 0.5% cashback on all investments for 180 days.
Write in the “Register your account” info that shows up on the site.
Name, Surname, Email and password 2 times and click in the Agree with terms box.
Now you get an activation link to your Email. Click it and you are halfway done now.
When you login to your account you have to provide quick address information. And to pick your own Pincode for when you do transfers on the platform.
Then Iban & bank info for the bank account you are going to connect to Crowdestor for transfers.
And for last a picture of your face and a copy of your Passport or other identification. Now you’re done with the verification process.
It takes up to 48H for Crowdestor to approve the account so you can transfer funds and start to invest.
They accept both Bank transfers and Transferwise for deposits to the Crowdestor platform. The transfers usually takes between 1-3 days which is standard nowadays. Since you connect a Bank account when you verify the account in the beginning, it’s this one you have to use for the transfers.
Minimum amount to transfer to the platform is €50.
Just click on ADD FUNDS in your profile on the website.
Now you get ADD FUNDS TO YOUR ACCOUNT page showing. Crowdestor makes you first put in the amount you want to transfer so that you get all the details for the payment information in the next step.
After adding the amount you have to click on the GET DETAILS button. You are sent to a page where all the bank info is listed so you can do the transfer from your bank. Like this picture shows an exampel of below.
If you want to change bank account connected to the platform, you will have to send them an email about this since you can’t change it in the profile manually.
There will come a day when you want to withdraw all or some of your money on the platform. Since there is no early exit for the projects you will be able to withdraw all the money that is repaid to you in interest and principal when each project repayment plan have ended.
You have already added the bank account information when activating the account at Crowdestor so you’re all set to withdraw any available amount.
Just go to Withdraw in your profile. Putt in the amount and Pincode, now you’re done and the money will show up in 1-3 days in your account.
Crowdestor Buyback Fund
In march 2019 Crowdestor introduced their Buyback Fund to the platform and all of it’s investors.
All the projects listed on the Crowdestor platform is secured from the start with a different type of Mortgages or contracts together with Crowdestor themself usually involved financially which is already a good security. With this buyback fund they want to add an extra layer of protection if one day one project fails and can’t repay all the money for investors.
Before launching this Fund they hoped for € 100 000 to have been located there when 2019 ends. And until now in February 2020, they already have over €316 000 in the fund and are increasing every month since no project has been late or failed yet which is a good.
Crowdestor is a P2P platform that doesn’t add so many projects each month so here everything works manually. This might come in the future but I think it wouldn’t be any sense to have it before they grow more and get 5x-10x more projects each month.
Manual investing is straightforward on the site so there should be no problem.
Only thing I can see auto invest useful at Crowdestor right now is when they add high interest projects. These projects tend to go fast so if your away a day and don’t check you could have missed a good project.
Do they have a secondary market on Crowdestor?
As for now Crowdestor have no early exit feature like secondary market or a way to sell back the loan. Since most of the loans are from 2 to 24 months there should be no reason for investing money in this or any P2P platform if you want to cash out early.
Only invest money you can spare and have there until the loan period is finished. One good thing is that they haven’t had one project defaulting yet and repayments have all been made in time. As long they keep doing good research and are involved themselves in the projects this should be no problem.
Crowdestor customer Support
In this crowdestor review we should mention that the support team at Crowdestor is reachable on both Email and Phone. I have sent them a few emails over the months with some questions and they usually answer back within a day or two. This is expected from most of the P2P Platforms today so they do a good job in my opinion.
I’ll have to try the phone support one day when I have more anything to contact them to see how that works 🙂
There is so many different P2P platforms to pick from today depending on what your after of course. Do you want a big platform with private loans or are you leaning more towards business projects? Do some research before joining the one you want to try out.
I would say that TFGcrowd is one of the main competitors for Crowdestor right now. They have similar approach and both are towards businesses and special projects you don’t find in other platforms. I see Crowdestor as less risky than TFGcrowd though. It feels like TFGcrowd are copying many things from Crowdestor with the start of their own Fund and approach all together. One red flag with TFGcrowd is that they say they will cover defaults with their own money if the fund isn’t enough. That statement can’t be true from a new platform like them. Since they would go out of business if 3 or more projects defaulted at the same time. I will keep looking in to them in the future, maybe they change some of the terms and info. Or at least can explain more how they can promote this.
Here is some of the other P2P platforms that is rather big and known for P2P investments today.
Mintos, Crowdestate, Estateguru and Bulkestate.
For more P2P platforms look at my P2P comparison page here.
Tax on profit? – Crowdestor review
Crowdestor do not provide any guidance or report on taxation like most of the P2P platforms out there. It’s up to you as an investor to keep track of your earnings and file taxes for the profit to the country you live in.
This taxation depends on where you live and usually also how much you earned over the year.
I have seen some countries that will tax you the same as the tax you have on income. Then on the other side I have seen countries that provides different schemes to pay much lower and down to 0% tax in some cases.
You need to find out the rules for your situation & country like any other investment. Talk to an accountant or someone else that can help you out if needed.
Is there a risk investing on Crowdestor?
Like every investment you make there will always be some risk involved. The normal view is that the higher the interest and profit are, the higher the risk of course.
We always have risk of cash drag if there is shortage of loans and late repayments but this is normal and can be said for every P2P platform.
We have two main things that can make problems which I think is important to mention. This would be the borrowers and Crowdestor themself.
If the project defaults and the borrower can’t repay the loan?
This is a risk worth mentioning, if the borrower fails to repay the loan or the whole project defaults. This can make you lose a part or all of the investment depending on how it turns out.
In this case Crowdestor have added a Buyback Fund in 2019 that is there to help out repay investors if this one day would happen. The Fund is at over €360 000 as of March 2020.
Until now all project have been paid in time and no defaults so far.
Before Crowdestor list a project on their platform, they go through all the financial aspects of the borrowers and the project plan to only pick projects they believe in. Since Crowdestor also join every project as co- financier or developer it’s in their interest to do good research on them like history have shown so far.
All the loans posted comes with security connected to them as well, it can be tied up with a contract from owners or tied up to property so that even if it fails there is still assets to collect so that investors get their money back.
If Crowdestor goes out of business?
This is the second main risk I will mention in this Crowdestor review for regarding their P2P platform that can cause problems if things aren’t set up the right. The loans invested in Crowdestor is between you and the borrower direct and not Crowdestor themself. Crowdestor separate the funds from their own so that it’s not connected to Crowdestor or their finance.
They hold all the investments through another company they own named CROWDESTOR SECURITY AGENT OÜ. This will protect your investment if Crowdestor themself would shut down.
There are no fees connected to any services for you as an investors on Crowdestor. Deposit, withdrawal, account and so on are all free from fees which is good.
They have a few fees for borrowers on the other hand which is standard for P2P platforms. Usually this is an amount of a few %. The fees connected to borrowers is shown here in the print screen below.
What currency to use on Crowdestor?
Crowdestor only accept transfers in EURO since that’s the only currency used on the platform and for the projects listed. If you don’t have EURO as your currency it’s always easy to convert it as an option in your bank transfer before sending it.
Crowdestor signup bonus
If you are new to Crowdestor you have two ways of getting started as an investor. One way is to create an account directly by going to their website, this way you wont get any extra bonus though.
The other way is by joining Crowdestor through a referral link that other active investors send you on Email, a link on their website or Blogs. Like the links you can see on my website and in this Crowdestor review which are referral links. If you register through a referral link you will get a signup bonus of 0.5% extra cashback on all investments made the first 180 days.
Always look for this type of bonuses before joining anything. Everytime I join something, doesn’t even matter what it is, I always look for some bonus since it’s never wrong with getting something extra on top right 🙂
Crowdestor weekly statistic
At Crowdestor they send out a weekly update on your profit made between last monday and Sunday each Monday. This is a nice touch since it might be times you don’t login for a while but most of us check our email. This weekly statistics shows you the profit you gained through interest paid out in this timeline. It will not show you if any principal has been paid out so I hope they also can add this in the future to get the whole picture. Below you can see how it looks like from my account between 10.02 – 16.02.
Important: Even if there is a Buyback Guarantee / Fund, Group Guarantee, collateral connected to a loan and so on there is always a chance you can lose your whole investment. There is nothing such as risk free investment, this goes for P2P, Stocks, Bonds, Property or anything else. Don’t invest money you can’t afford to lose.
I hope this Crowdestor review gave you the answers you are looking for. Maybe it even got your eyes more open to what P2P lending is and how it works.
Leave a comment or send an email if there are questions or something you want to discuss.