Hands-Off 12% – 14% Annual Returns Available Investing In Short Term Loans. – Robocash P2P Review. Is Robocash Safe? Find Out!
My Lending Experiences & Actual Investment Returns Published Monthly Below.
What is Robocash?
Robocash is a leading European short term Peer to Peer Lender, providing loans to consumers around Europe.
With loan terms from a few days up to 12 months (however most around 30 days), and offering easy, hands-off returns between 12% and 14%. They are an excellent option for diversification when investing in short term Euro currency loans.
Also they offer a “buyback guarantee” on most of their loans, which means it will buyback loans and repay principal and interest if payments are delayed more than 30 days.
Robocash is very similar to Mintos & Grupeer where it does not originate most loans itself, but uses loan originators to provide most of the loans (although some of the originators are part of the Robocash Group). This means the loan flow is generally good, keeping cash drag to a minimum.
My Experience with Robocash
Robocash is a great option for short term capital storage. Personally I only invest in loans up to 30 days in length, and my current XIRR is a little over 13%.
Since I first invested with them, I’ve literally not needed to change anything. Their auto-invest system works well and funds seem to stay invested, making very reasonable annual returns. With zero cash drag and access to capital within 30 days when needed.
Latest Update 27/3/2020 – 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 Robocash are unsecured, I’ve decided to switch off reinvestment for now and withdraw capital as it is paid back. Robocash has both short term and long term loans. I’ve already managed to withdraw capital from a lot of repaid short term loans. The longer term loans are up to 1 year so I’ll just withdraw that capital as it is paid back.
Robocash seem to be communicating and managing their loans well. So far capital has been easy to withdraw from the platform and most of it arrives in my bank account the next day.
I’m not really concerned about Robocash loans, I would 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 Robocash.
The Obvious Investor – Easy-Info Table© – Robocash Review
Overall Rating*: (3.6 / 5) Who can invest: Loan Currencies: € Estimated Return: Up to 14% My Actual Return
12.00% My Calculated XIRR: 12.36% 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: No Lending To: Borrowers (through originators) Loan Types: Payday Loans. Loan Security: No. Provision Fund: No provision fund.
See review for "Buy Back Guarantee"
Loans Amortize: No. Short Term (30 day) Loans. Time to Invest: Fast: large loan book. Time to Mange: None (auto-invest). Lender Fees: No. Payments Received: Monthly, weekly. Various times. Amount Lent: €6 million+ (P2P Platform)
€100 million (Robocash Group).
Number of Investors: 5,800+ Loan/Dflt Stats: Not Published. Regulated: No Location: Croatia. Launched: 2017 (P2P Platform)
Website: https://www.robo.cash Email: [email protected] Telephone: +385 1344-58-18 IFISA/IRA: No Cashback**: Invest in Singapore loans until the end of February and earn +0.5%
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How to Sign Up**: Sign Up Here!
Robocash P2P is part of the Robocash Group which was launched in 2013. The P2P platform was launched in February 2017 in Riga, Latvia but moved to Zagreb, Croatia in March 2019.
In the 2 or so years the Robocash P2P platform has been up and running, it has lent out over 6€ million Euros from 5,800 investors to consumers in 8 countries. The Robocash Group itself has lent over 100€ million Euros and has been profitable since 2015.
To give you an idea of the Robocash Group components, here is an image of their footprint. As you can see, they are expanding rapidly.
Robocash is not regulated as the UK Peer to Peer lenders are by the FCA, however they are actively scrutinized by the Croatian government and also 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 to assess the safety of the investments. Instead of relying on a regulator.
Signup Process – Robocash Review
Opening an account with Robocash is relatively easy. Just the usual ID & anti money-laundering checks.
They typically need a copy of your passport or ID card. Sometimes a utility bill or bank statement to show your current address will also be required.
Residents of any EU country or Switzerland can signup with Robocash. You’ll also need a Euro currency bank account with IBAN number.
If you don’t currently have a Euro bank account, 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 it, worse case 2 days.
Withdrawals are only to a verified bank account, and typically take 1 – 2 business days.
Time to Become Invested – Robocash Review
Robocash has a large loan book provided from its loan originators. Once you’ve set up your auto-invest strategy (the only option with Robocash, no manual invest) it usually takes just a few hours for your capital to get distributed in to loans.
Who are we lending to?
Robocash P2P is a true Peer to Peer Lending Platform. Lenders are lending directly to borrowers. Loan agreements are directly between the lender and the borrower. Robocash just acts as a middle man, managing loans, payments and debt collection etc.
Similar to Mintos & Grupeer, Robocash itself doesn’t originate many of the loans. It has “loan originator companies” it works with (some of which are part of the Robocash Group), and they originate the loans locally, then provide the loans to the Robocash platform for individual lenders to invest in.
Here’s a list of current loan originators.
Robocash provides payday loans to consumers. Payday loans are typically smaller amounts of capital with short duration, usually up to 30 days. Interest rates borrowers are charged on these types of loans can be huge, 50% or even more at times. The number of defaults on these types of loans is typically very high as well, so the spread between what Robocash charges its borrowers, and what it pays us as investors enables it to stay in business. The Robocash Group is on target to make €31 million this year, so there should not be any problem with that side of things.
Loan Security – Robocash Review
Typically there is no loan security with payday loans, so we’re reliant on the Robocash buyback guarantee to make sure we receive our capital and interest back in the event of defaults.
Default Rates – Robocash Review
Robocash don’t publish their default rates. However speaking with them, it appears that the average is between 12% to 14% which is really high. However this is normal for the payday loan industry and is easily covered by the spread as mentioned previously.
You’ll notice on the screenshot below, a fairly large percentage of loans are overdue. This concerned me when I first started investing with Robocash. Now though, I understand it’s completely normal and expected with these types of loans.
It’s easy to go to the loans list and see which loans are late if you really want to. I don’t bother though as it is all taken care of with the Robocash buyback guarantees.
As most of the loans on Robocash are less than 30 days in duration, they do not amortize as they are basically paid back in full at the end of the term.
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.
Selling Loans and Withdrawing Capital
There is no secondary market yet with Robocash so when you invest in loans, you’re in them for the whole duration. That being said, the maximum duration I lend on is 30 days, so selling loans is not necessary. Just wait until the loans are paid back or bought back in the 30 day time limit.
Diversification – Robocash Review
Diversifying capital into loans is easy with Robocash because of the size of their loan book.
The auto-invest portfolios diversify automatically based on the settings you give them, so you decide the amount you put into each loan.
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 in to default. Each originator is responsible for it’s own guarantee which Robocash 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 Robocash so far to my knowledge.
Tax Free Innovative Finance ISA (IFISA)
No tax free account options with Robocash.
Website – Robocash Review
The Robocash Website is simple but effective. It’s fairly easy to figure out where everything is and how to set up auto-invest portfolios.
Robocash return rates are very reasonable for a Euro lender. Their website says all loans are 12% but I often see a bit more. As I’m writing this review, my XIRR is currently 13.20% which is right up there with Grupeer and Mintos, but the loans are only for 30 days which gives easier access to capital if needed.
Robocash actually used to offer interest rates much higher (up to 15%) 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 Robocash Investment Strategy
My Investment strategy with Robocash is simple. I just choose all originators which offer a buyback guarantee (which is all of them currently), and set the interest rates between 12% and 15%. Basically I just accept the default settings, except I set the repayment period between 15 and 30 days which seems to keep all of my capital invested.
I don’t take any notice of the “Available Loans” counter as it never seems to show anything, I think because loans are added and filled very quickly throughout the day.
Robocash Review – Summary
Robocash is certainly a viable platform for lending out Euros for short term access. Their return rates are excellent for auto-invest loans with little to no time required to manage, and short term capital access.
The Robocash buyback guarantee and the size of the Robcash Group in my opinion it makes Robocash P2P one of the safer Euro lenders out there.
I have no hesitation investing in Robocash as part of my diversified Euro portfolio, and I can definitely recommend them as part of an overall investment strategy.
Thumbs Up Points for Robocash
Unique Diversification – focusing on consumers and businesses in many different countries in Euro currency.
Great Returns – 12% – 14% for loans in Euros with 30 days access is a great rate.
Auto-Invest – auto-invest options are nicely configurable enabling hands-off investment.
Buyback Guarantee – the “Robocash buyback guarantee” will buy back the loans if they go in to default, therefor making investments safer.
Thumbs Down Points for Robocash
No Regulation – may make Robocash a riskier proposition, however having a good history, multiple loan originators and the backing of the Robocash Group helps to lower the risk.
Croatia 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 retirement account – for interest free investing.
Risk Factor – 5/10 – Medium
Is Robocash Safe? I consider Robocash to be in the medium risk category.
Even taking in to consideration Robocash P2P is part of the larger Robocash Group, which is profitable, it is still an unregulated business in a foreign (to many people) county.
Who Can Invest with Robocash?
Residents of EU countries and Switzerland can invest with Robocash. Contact Robocash for more information
Offers & Signup Links**
Invest in Singapore loans until the end of February and earn +0.5% cashback.
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.
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* 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.