Solid 11% – 13%+ Annual Returns Available Investing With One Of Europe’s Best Peer to Peer Lenders, PeerBerry! – PeerBerry P2P Review plus PeerBerry Strategies. Is PeerBerry Safe? Find Out!
My Lending Experiences & Actual Investment Returns Published Monthly Below.
What is PeerBerry?
Offering easy, hands-off returns between 10% and 14%, PeerBerry is an excellent option for diversification when investing in Euro currency loans. PeerBerry also offer a “buyback guarantee” on most of their loans, which means their loan originators will buyback loans and repay principal and interest if payments are delayed more than 60 days.
PeerBerry is very similar to Mintos, RoboCash, Grupeer & Viventor where it does not originate most loans itself, but uses loan originators (other financial retail lenders, who then list their loans on the PeerBerry marketplace). This means that PeerBerry’s loan flow is generally good, keeping cash drag to a minimum and offering a good amount of diversification.
My Experience with PeerBerry
Although I only started lending with PeerBerry recently, I have been very well acquainted with them since they started the platform as they were originally part of the Aventus Group. This meant they had the backing of a large Fintech firm from the very start, so PeerBerry got a lot of media attention. This made them very popular in the Euro lending market as they were (and still are) looked at as one of the safer options.
Once I started lending, my funds were lent out in a couple of days, and from there on in “hands off investing” has been my experience. I’ve literally not needed to change anything. Their auto-invest system works well, distributing funds between PeerBerry loan originators and loans quickly and efficiently. Once lent out, funds seem to stay invested making upwards of 11% annual returns with zero cash drag so far.
So, with easy, hands-off investments paying very decent returns. PeerBerry have good reason to be part of my diversified Peer to Peer lending portfolio.
Latest Update 1/4/2020 – My COVID-19 Peer to Peer Lending Strategy – Here’s a post I wrote on my take on the current situation.
As most of the loans on PeerBerry are unsecured, I’ve decided to switch off reinvestment for now and withdraw capital as it is paid back.
PeerBerry have actually turned out to be one of the most reliable Euro lenders so far. They are communicating and managing their loans, and the situation well. Capital has been easy to withdraw from the platform and most of it arrives in my bank account the next day. I have over half of my invested capital back already, and as loans come to term, or get bought back through Buyback Guarantees, capital is readily available to withdraw.
I’m not really concerned about PeerBerry as a company in the long run, but the loans are unsecured which are risky in normal market conditions, so right now, who knows?
I just prefer to have capital sat in a government insured bank account until we see how deep this crisis is going to affect the economy. As soon as things start to pick up, I’ll have no hesitation at all in jumping back in to PeerBerry.
The Obvious Investor – Easy-Info Table© – PeerBerry Review
Overall Rating*: (3.4 / 5) Who can invest: Loan Currencies: € Estimated Return: Up to 14% My Actual Return
12.50% My Calculated XIRR: N/A (not enough data) Risk Rating*: 5/10 - Medium Early Exit: No
No secondary market.
Min. Investment: €10 Deposit Funds: Bank account (SEPA Transfer).
Typically 1 -2 days.
Auto-Invest: Yes Manual Invest: Yes Lending To: Borrowers (through originators) Loan Types: Payday Loans.
Short Term Consumer Loans.
Real Estate Loans.
Business Development Loans.
Loan Security: Some but not all. Provision Fund: No provision fund.
See review for "Buy Back Guarantee"
Loans Amortize: Some. Most Loans Are Short Term (-90 day) Loans. Time to Invest: 1 - 3 Days. Time to Mange: None (auto-invest). Lender Fees: No. Payments Received: Monthly, weekly. Various times. Amount Lent: €212 million Number of Investors: 18,500+ Loan/Dflt Stats: Not Published. Regulated: No Location: Riga, Latvia Launched: November 2017 Website: https://PeerBerry.com Email: [email protected] Telephone: +370 61 355 529 IFISA/IRA: No Cashback**: None Currently
Check For New Offers >>
How to Sign Up**: Sign Up Here!
PeerBerry – Overview
PeerBerry was launched on November 1st, 2017 in Riga, Latvia. Since then they have grown the platform to over 18,500 investors and have lent over €212,000,000. PeerBerry have paid out almost €2,000,000 to investors in earned interest, with an average return of 11.51%.
Peerberry were originally part of the Aventus Group and only listed loans from Aventus on their platform. They have since been purchased by a group of shareholders which now allows them list loans from multiple originators on their site enabling greater diversification of investors funds.
PeerBerry is not regulated as the UK Peer to Peer lenders are by the FCA, however now they are based in Latvia which is part of the EU and as such, they will need to adhere to European financial laws.
With many of the European lenders, investors look more at the history and strength of the lender, and also asset security to assess the safety of a platform. Instead of relying on a regulator.
Signup Process – PeerBerry Review
Opening an account with PeerBerry is relatively easy. Just the usual ID & anti money-laundering checks.
They typically need a copy of your passport or ID card. A utility bill or bank statement to show your current address will also be required. Both can be uploaded to the PeerBerry website digitally.
Residents of most countries who can comply with the ID & anti money-laundering checks can signup with PeerBerry. You’ll also need a Euro currency bank account.
If you don’t currently have a Euro bank account with IBAN number, take a look at this post I did on Currency Exchange and Moving Money which might give you a few ideas.
Deposits & Withdrawals
Deposits and withdrawals are made by bank transfer (SEPA transfer so IBAN number required).
You will be provided with the relevant bank details when you go to the deposits screen.
Deposits usually show up in your account the next working day depending on what time you send them (although PeerBerry say 1-3 days, this has not been my experience).
Withdrawals are only to a verified bank account, and typically take 1 – 2 business days.
Time to Become Invested – PeerBerry Review
PeerBerry now has a good sized loan book provided by 23 loan originators. If you use auto-invest (as I do) then once you’ve set up your investment strategy, it can take a couple of days for your capital to get distributed into loans. As you can see in the screenshot below, the loan criteria and settings are relatively basic and easy to setup. My personal PeerBerry lending strategies are discussed later in the review.
If you choose to lend manually with the regular loan listings, it will take as long as it takes you to decide on which loans you want to be invested in.
PeerBerry has a has a good set of filters which means you can filter on required fields (similar to the auto-invest filters) to find loans you want to invest in manually.
Who are we lending to?
PeerBerry P2P is a true Peer to Peer Lending Platform. Lenders (investors) are lending directly to borrowers. Loan agreements are directly between the lender and the borrower. PeerBerry just acts as a middle man, managing loans, payments and debt collection etc.
Similar to Mintos, Grupeer, Robocash & Viventor, PeerBerry itself doesn’t originate most of the loans like many P2P lenders. It has over 23 “loan originator companies” it works with, and they originate the loans locally, then provide the loans to PeerBerry for individual lenders to invest in.
PeerBerry provides mostly loans to consumers in the form of short term loans or payday loans. PeerBerry does also provide a few other types of loans, such as real estate loans, business development loans, and also car loans. However most loans I’ve seen on the platform are short term loans to consumers.
Loan Security – PeerBerry Review
Both secured and unsecured loans are available on the PeerBerry platform. However most of the short term consumer loans have no asset security.
Remember the PeerBerry buyback guarantee offers security for lent out capital by buying back late loans, so asset security is less important, although not to be discounted if available.
Default Rates – PeerBerry Review
PeerBerry don’t publish their default rates. As most originators offer buyback guarantees, they are less important than if investing though a company like Zopa or Funding Circle that don’t offer any kind of buyback guarantee or provision fund, and therefore default rates can make a significant difference to the account yield.
There are different types of loans on PeerBerry; fully amortizing, partially amortizing, interest only and bullet loans (balloon payment). Although because most loans are short term loans, they don’t amortize as they are typically paid back in full within a short day period (30 days in most cases for short term payday loans).
Amortization is the paying off of debt with a fixed repayment schedule in regular installments over time. It reduces the risk of the loan compared to a non-amortizing loan in which nothing is received until the end of the loan period, or only interest is received monthly, and then the capital repaid at the end of the loan period.
It’s easy to see loan details including the loan term and amount, just by clicking on the loan number in the loans listing screen.
Selling Loans and Withdrawing Capital
There is no secondary market available with PeerBerry, so when you invest in loans, make sure you understand the loan term. PeerBerry loans are typically shorter term loans which really minimizes the need for a secondary market. All you need to do is wait until the loan term completes to retrieve your capital.
Also ensure you have the correct settings in your auto-invest strategy for the loan length you need.
Diversification – PeerBerry Review
Diversifying capital into loans is easy with PeerBerry because of the size of their loan book.
Their predefined auto-invest portfolios diversify automatically based on the settings you give them, and with the self-select loans, you decide the amount you put into each loan.
There is technically no provision fund with PeerBerry. However the previously mentioned PeerBerry buyback guarantees provided by their loan originators really help to put more confidence in PeerBerry loans.
Buyback guarantees in my eyes are as good as, if not better than a single provision fund. This is because we are not relying on just one company to step in if a loan goes into default. Each originator is responsible for its own guarantee, which PeerBerry regulates to an extent. The risk of course is if an originator goes out of business, which has happened once in the past with a Mintos originator, but not with PeerBerry so far to my knowledge.
Tax Free Innovative Finance ISA (IFISA)
No tax free IFISA account options with PeerBerry.
Website – PeerBerry Review
The PeerBerry Website is simple but effective. It’s fairly easy to figure out where everything is and how to set up auto-invest strategies or manually select loans.
PeerBerry return rates are very good, at an average of around 11.50% since their platform launched. Their website says the average is 11.51% as I’m writing this review. Although lately there have been a lot of 12.50% loans come available.
PeerBerry actually used to offer interest rates much higher (up to 16%) when they first started. However recently the rates have come down due to increased investor demand and the growing safety of the platform.
My Personal PeerBerry Investment Strategy
My Investment strategy with PeerBerry is simple. I choose a few specific originators which get good ratings in various areas like company size, profitability, history & transparency (see screenshot below). All of which offer a buyback guarantee (set the “buyback guarantee” field to “on”), and set the interest rates between 11% and 20%. I only invest in loans from Poland, Czech Republic and Ukraine, again because of recommendations I’ve found based on lender stability & loan default rates in those areas.
I choose a loan interval of up to 90 days. Then set the loan max amount into any one loan at €50 as there are usually plenty of loans available. You could go less if your investment was a smaller amount. The remaining principle in the loan is kind of a mute point for me, so I just set it 10 low and 5000 high which should capture most short term loan values.
The rest of the settings I use are in the screenshot below. Once set, I just hit “Save & Activate” and let the strategy go. As previously mentioned, it can take a couple of days for PeerBerry to get all funds loaned out.
PeerBerry Review – Summary
PeerBerry is certainly a viable platform for lending out Euros. Their return rates are excellent for auto-invest, short term loans. With little to no time required to manage.
The PeerBerry buyback guarantee and history with Aventus in my opinion makes PeerBerry one of the safer Euro lenders out there. So I have no hesitation investing in PeerBerry as part of my diversified Euro portfolio.
The PeerBerry staff are always professional whenever I need to contact them for anything, and they all speak English very well.
Thumbs Up Points for PeerBerry
Unique Diversification – focusing on consumers and businesses in many different countries in Euro currency.
Great Returns – 11%+ for loans in Euros is a good rate.
Short Term Loans – If you don’t want to ties money up for long periods, there are usually plenty of short term loans available.
Auto-Invest – auto-invest options are nicely configurable allowing us to pick up just the loans we want in our portfolio.
Website Easy To Use – shortens the learning curve and time to get invested.
PeerBerry Buyback Guarantee – most originators offer the “PeerBerry buyback guarantee” and will buy back the loans if they go in to default, therefor making investments safer.
Thumbs Down Points for PeerBerry
No Regulation – may make PeerBerry a riskier proposition, however having a good history and multiple loan originators for diversification helps lower the risk.
Latvian Based – for UK investors this may not be as comfortable as investing in UK companies. European investors don’t seem to see this as an issue though, and I certainly don’t.
Currency Risk – investing in a currency other than your home currency can have it’s own inherent risks if it falls. If your home currency is Euros then this is not an issue.
No Secondary Market – for selling loans. Most loans are short term though, so getting capital out shouldn’t take too long.
No Tax Free Savings Account – such as an ISA for interest free investing.
Risk Factor – 5/10 – Medium
Is PeerBerry Safe? I consider PeerBerry to be in the medium risk category. Even taking in to consideration the “PeerBerry buyback guarantee”, PeerBerry is still an unregulated business with a relatively short track record.
Who Can Invest with PeerBerry?
Who Are the Best Peer to Peer Lenders In An Economic Downturn? Would You Like A Copy of the Spreadsheet I Use for Tracking P2P Lenders? Disclaimers: * My opinions, reviews, star ratings and risk ratings are based on my personal investing experience with the company being reviewed. These ratings are personal opinions and are subjective. You should do your own research before investing any capital and not base investments solely on the opinions published on this site. ** Some of the links on this website are affiliate referral links. When you click on these links, I can sometimes receive a commission, at absolutely no cost to you. This helps me to continue to offer new reviews and monthly portfolio updates here on my website. I don’t receive commissions from all lenders and it has no effect on my ongoing opinions on lenders. Income on my investments and capital preservation are my main motivations. Platforms reviewed on this website I am currently investing with, or I have invested with in the past. You can see with full transparency on my Lending Returns page which lenders I am invested with (or have previously been invested with) at any point in time. I am not paid a fee by any of the companies to write reviews, so the reviews are unbiased and purely based on my own personal experiences. Please read my full website Disclaimer before making investment decisions.
New to Peer to Peer Lending?
Ready to Get Started??
Who Are the Best Peer to Peer Lenders In An Economic Downturn?
Would You Like A Copy of the Spreadsheet I Use for Tracking P2P Lenders?
* My opinions, reviews, star ratings and risk ratings are based on my personal investing experience with the company being reviewed. These ratings are personal opinions and are subjective. You should do your own research before investing any capital and not base investments solely on the opinions published on this site.
** Some of the links on this website are affiliate referral links. When you click on these links, I can sometimes receive a commission, at absolutely no cost to you. This helps me to continue to offer new reviews and monthly portfolio updates here on my website. I don’t receive commissions from all lenders and it has no effect on my ongoing opinions on lenders. Income on my investments and capital preservation are my main motivations.
Platforms reviewed on this website I am currently investing with, or I have invested with in the past. You can see with full transparency on my Lending Returns page which lenders I am invested with (or have previously been invested with) at any point in time. I am not paid a fee by any of the companies to write reviews, so the reviews are unbiased and purely based on my own personal experiences.
Please read my full website Disclaimer before making investment decisions.