Swaper Review

12% Annual Returns Available Investing In Short Term European Loans. – Swaper Review. Is Swaper Safe? Find Out!

What is Swaper?

Swaper is a 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 are between 14 – 30 days), and offering easy, hands-off returns of around 12%. They are an excellent option for diversification when investing in short term Euro currency loans.

Swaper P2P also 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.

Swaper is owned by the Wandoo Finance Group who is a professional IT systems developer. Wandoo also originates loans and uses the Swaper platform to publish pre-funded consumer loans for Peer to Peer investment. Wandoo Finance Group employs more than 100 people and has developed and launched over 30 financial services and IT ecosystems in Europe and North America.

The Obvious Investor – Easy-Info Table^© – Swaper Review

Overall Rating*:	(3.7 / 5)
Who can invest:
Loan Currencies:	€
Estimated Return:	Up to 13%
Target Annual Return (Platform Number):	11.06%
My Calculated XIRR:	10.71%
Risk Rating*:	5/10 - Medium
Early Exit:	Yes Loans can be sold on 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 originator)
Loan Types:	Payday/Consumer 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:	€80 million+
Number of Investors:	2,500+
Loan/Dflt Stats:	Not Published.
Regulated:	No
Location:	Riga, Latvia
Launched:	2016
Website:	https://www.swaper.com
Email:	info@swaper
Telephone:	+372 6000393
IFISA/IRA:	No
Cashback**:	See Current Offers >>
How to Sign Up**:	Sign Up Here!

Overview

History

Swaper is part of the Wandoo Finance Group. The Peer to Peer platform was launched in October 2016 in Riga, Latvia.

In the 3 or so years the Swaper P2P platform has been up and running, it has lent out over 80€ million Euros from 2,500 investors to consumers in 5 countries. Swaper currently provides consumer loans to consumers in Poland, Georgia, Denmark, Spain & Russia

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 – Swaper Review

Swaper P2P has a large loan book provided from its parent company and loan originator Wandoo Finance Group. Once you’ve set up your auto-invest strategy (the only option with Swaper, no manual invest) it usually takes just a few hours for your capital to get distributed in to loans. I have seen reinvestment take a couple of days but typically it does not take that long.

Who are we lending to?

Swaper is a true Peer to Peer Lending Platform. Lenders are lending directly to borrowers. Loan agreements are directly between the lender and the borrower. Swaper just acts as a middle man, managing loans, payments and debt collection etc.

Similar to Mintos, Robocash & Grupeer – Swaper itself doesn’t originate the loans.  The Swaper platform is just used to present the loans for individual lenders to invest in. 

Loan Types

Swaper provides mostly short term (14 – 30 days) consumer loans. These types of loans can be for anything from a personal payday loan, to auto-finance and everything in-between. Most are payday loans it appears from my lending thus far.

Loan Security – Swaper Review

Typically there is no loan security with short term consumer loans, so we’re reliant on the Swaper buyback guarantee to make sure we receive our capital and interest back in the event of defaults.

Default Rates – Swaper Review

Swaper 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 between rates charged to consumers, and the rates paid to investors.

If you look at your investments at any point in time, you’ll see a fairly large percentage of loans are overdue. This is typical with short term loans though so I don’t worry about it as it is all taken care of with the Swaper buyback guarantees. 

Amortization

As most of the loans on Swaper P2P 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 -Swaper Review

You can sell loans on Swaper by clicking on the arrow from the loans listing page. This will present a popup asking how much of the loan you would like to sell.

Remember though that most of the loans are less than 30 days long, so unless you’re in a huge rush, just turn off the auto-invest feature and wait for the loans to be repaid.

Diversification – Swaper Review

Diversifying capital into loans is easy. The auto-invest diversifies your capital automatically based on the settings you give them, so you decide the amount you put into each loan.

Provision Fund

There is technically no provision fund with Swaper.  However the previously mentioned “Swaper buyback guarantee” really helps to put more confidence in Swaper loans.

Tax Free Innovative Finance ISA (IFISA)

No tax free account options with Swaper.

Website – Swaper Review

The Swaper P2P Website is simple but effective. It’s fairly easy to figure out where everything is and how to set up auto-invest portfolios. 

Return Rates – Swaper Review

Swaper return rates are very reasonable for a Euro lender. Their website says all loans are 12% but I often see a bit more. You’ll notice on the screenshot above, the the rate indicated is 12.68% with an XIRR of 9.26% which is low because the account is new and will increase as more payments come in. It should get to 12%+ within a couple of months. This is right up there with Grupeer, Robocash and Mintos, and the loans are only for 30 days, which gives easier access to capital if needed. 

• Part of Larger Group – being part of the larger and profitable Wadoo Finance Group gives Swaper P2P extra stability. 

• Unique Diversification  – focusing on consumers in many different countries in Euro currency. Makes for good diversification out of business loans.

• Good Returns – 12% for loans in Euros with (mostly) 30 days access is a decent rate.

• Auto-Invest – auto-invest options are nicely configurable enabling hands-off investment.

• Buyback Guarantee –  the “Swaper buyback guarantee” will buy back the loans if they are delayed more than 30 days, therefor making investments safer. 

• No Regulation – may make Swaper a riskier proposition, however having a good history, and being part of the larger Wandoo Finance Group helps to lower the risk.

• 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.

Is Swaper Safe? I consider Swaper P2P to be in the medium risk category.

Even taking in to consideration Swaper is part of the larger Wandoo Finance Group, which is profitable, it is still an unregulated business in a foreign (to many people) county.

  Safe?

Residents of EU countries can invest with Swaper. Contact Swaper for more information

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