- 1 Review on Bondora
- 1.1 What is Bondora?
- 1.2 How does Bondora work?
- 1.3 What are the Advantages of Investing in Bondora?
- 1.4 Bondora Review: Selectivity
- 1.5 Bondora Review: Specials Offers
- 1.6 Bondora Review: Volume
- 1.7 Bondora Review: Rates and Durations
- 1.8 Bondora Review: Sponsorship
- 1.9 Bondora Review: How to Credit your Account and Minimum Investment Amount
- 1.10 Bondora Review: Repayment
- 1.11 Bondora Review: Cost of the Services
- 1.12 Bondora Review: Condition for Lenders
- 1.13 Bondora Review: Risk
- 1.14 Bondora Review: insurances and warranties
- 1.15 Bondora Review: return
- 1.16 Bondora Review: The Interface
- 1.17 Bondora Review: Conclusion
Review on Bondora
What is Bondora?
In short, Bondora API is an organisation that seeks to help investors with strategies and customised investment plans. They are very supportive of investors who are involved in trade and commerce, and apart from the customised investment plans, they also provide granular reporting.
How does this differ from Portfolio Managers? Isn’t it essentially the same thing? The answer to this is no. Bondora API can provide investors flexibility that others cannot provide. Bondora’s interface for accessing functionality called API provides investors with a range of avenues in which they can invest in providing them in-depth solutions in a transparent mode. At this interface, investors will be able to have total access to all of Bondora’s applications and services.
As an investor with Bondora, you have a definite edge over others who seek the assistance of Portfolio Managers. With information, statistics, analytics provided at your fingertips, investors will be able to bid on investments and loans that suit their budget – what’s best is that it can all be accessed by one click on a single screen. Each investor will be able to get the most out of the data and services that are freely available to them, by using a common programming language.
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How does Bondora work?
The large team working for Bondora are undoubtedly the best in their respective fields in investments, trained to negotiate the best for their clients. People who work for Bondora have high levels of energy and a winning attitude, making investors feel as if they’ve come to the right place. Their aim is to ensure that the clients get to the next level, globally in the right way.
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How does Bondora perform all it promises? It’s based on the principle of lending from peers on a platform that brings together people who have the same need for money, some wanting to borrow and some others wanting to lend.
When we said that Bondora offers you flexibility, we were serious – any investors have the freedom to pick the loans or projects that they want to invest in manually. Many active investors like that they have the freedom to hand-pick the loans from either from Primary or Secondary Markets. Using the different filters, one can go through the necessary criteria and pick which suits their needs best. Each investor must be fully aware of the programme before embarking on such projects. Experts suggest that you spread your money over many loans so that it lowers your risk – however, you are free to act on your discretion.
What are the Advantages of Investing in Bondora?
Highest yielding P2P platform for investors
Bondora know from a bank as the highest yielding peer-to-peer (P2P) lending platform across the globe. Bondora issues loans to individuals in Finland, Spain and Estonia. These markets are underbanked in comparison to other Western European market, that why bondora can offer so a hight return.
Money isn’t sitting
Primarily, one thing that all investors seem to benefit from Bondora is that their money isn’t sitting in a bank earning a measly interest rate. It isn’t accumulating a zero point percentage that does almost nothing to combat the money lost in inflation. Investors like that money aren’t kept idle, and it’s deployed in robust plans that will live them their most.
Start investing with smals amounts
Another sizeable advantage Bondora offers is that you can start investing with smaller amounts if you want to build your trust and take one step at a time. Once you gain confidence in those borrowing, you can gradually increase your capital base. However, you need to be consistent with this practice.
To expand your portfolio consistently, you need to reinvest your money into the next project no sooner the total recovery is made. Thus far, the ‘P2P’ scheme is known to benefit investors with a healthy return, especially when compared with other tools in the market in fixed term deposits. The P2P is an illiquid asset, however, with Bondora, you are able to sell or discount loans because of an active Secondary Market.
No fees on investing
Solid 8-year track record
Bondora has experience, the track record dating go back until 2009
Most licenced platform in Europe
Bondora is authorized in the US by the SEC, in Estonia by the FSA, and in Finland by the RSAA
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Bondora Review: Selectivity
In relation to selectivity on Bondora, each investor will deploy their funds at their own risk. As much as there is an element of flexibility that every investor enjoys by being able to filter and choose the loan they wish to fund, Bondora makes it very clear that each transaction is based at our discretion. Unlike having a Portfolio Manager, they will not be advising on whom to trust, rate them and assist the selections process.
You can select from the primary or secondary markets too; given that there are several options, one can arrive at the conclusions that there is a selectivity involved because each investor has the liberty to choose the project, loan, or business they wish to fund in this peer to peer funding programme.
On the other hand, there could be claims to say that there are insufficient loans in the primary market; naturally, the loans aren’t secured – but this is of course outweighed by the hefty interest rate earning on the loans. It’s not entirely impossible to earn double digit values here. It’s only natural that many people show a level of scepticism towards Peer to Peer (P2P) Funding as the concept is relatively young; it’s just reaching over a decade now. There could be many myths and claims about how financial democratisation works.
Bondora Review: Specials Offers
In terms of Bondora offers, the first of the many claims you may encounter concern how portfolio managers are dumping funds into dead markets and that investors get no returns. However, what they fail to realise is that the API can be set to a conservative mode where there is little or no risk at all. This way you wouldn’t lose money on unrepaid loans. Once you create an account with Bondora, all this information will be readily available to you under the ‘reports’ section on the tabs. It may be complex to find, but the statistics will be there without fail.
If users are still getting the hang of how this works, it’s best to first go on a ‘Buyback Guarantee’ basis where there are minimal stress levels. You will have predictable and guaranteed returns. You can even opt for the Portfolio Manager option if you are still unsure of how the system works.
Bondora Review: Volume
Bondora is one of the bigest p2p website, the volume is huge, but in fact you need to invest in more than one country. In the past, on bondora, you can invest only in one country loan, but now it impossble due to fact they remove the manual investment and the option in auto invest mode.
Bondora has a volume of some millions in 2017 (93.8 M EUR on 27/06/2017)
Statistically, an investment with Bondora will yield you a Return on Investment amounting to 25%, however, there have been times where trading volumes can result up to 30% in about sixty days. Bondora, a Peer to Peer lending investment company is originally based in Estonia. It’s known to be the biggest that uses Euro as its main currency for trade.
When speaking of volumes, they have processed loans that have exceeded one billion Euros since its opening in 2009 – eight years ago. Many investors across Europe, including countries like Spain, Finland, and Estonia use the platform to source their loan requirements.
It’s a common trait that investors in Europe do not fees applicable for the primary markets. The only time you would need to make a payment is when you are investing in a secondary market, i.e., when you are buying shares in something that has been invested in previously.
When considering the aspect of volume it’s apparent that Bondora is able to produce a demand that is only trending positively and will only grow in the future. There are many types of investors whose needs are diverse in terms of projects they are investing in, duration, payment period and urgency, if you are well aware of the statistics that the API interface provides, it is an easy money maker. Simply, Bondora is responsible for 50% of the total loans from Spain and Finland, that’s about twenty-five percent each.
Bondora Review: Rates and Durations
Loans can be between some months to over 5 years longs. The middle loan rate is 30% but can go from about 12% to 99% yearly interest, with the risk in proportion.
One the best features that help you understand the rates and durations available at Bondora is its simplified interface called API. When you go through the dashboard, the heart of the API, you will find the Portfolio Manager where you will be able to cite your preferences for investments clearly. Each section is able to filter a loan or investment so that you can pick and choose, depending on your interests and of course, money.
Users who prefer to have a conservative approach to rates and durations, if you do not have the time to keep track of your investments 24 hours a day, you can switch over to the Portfolio Manager which is the most conservative part of the programme. Over time, there have been some modifications that have taken place on the interface, especially with the filters. They now have the standard filters, however, you can find out every single detail you need on the API interface.
Users of the platform will warrant that at any given point that there are over 100 loans and investment opportunities available at any time. Their interface will allow you to understand the stance of the Market with one simple glance – their rates and volumes pique, and even more so in the Secondary Market.
Bondora Review: Sponsorship
If you are unsure of going ahead with a certain project or investing in a loan, you can have sponsorship so that you understand exactly what the requirement is. The concern that lies in a Peer to Peer platform is that that there is no security, however, all information pertaining to the user will be provided and the assessment will be based on that. There is a benefit where there is no charge for a mortgage, but not all crowdsourcing ventures will have this kind of flexibility in the markets that they operate in. There could be fluctuations in the market, then the project may be appealing and have fancy business proposals, but there is no ready assurance that it is bound to succeed. Naturally, the sponsors of the project are the ones that will take the initial hit when the project failed. The real question is how well do you know your way around the API where all such information is provided. If you are not willing to take such risks, you can always opt for the safer way out with a Portfolio Manager that takes you off the automatic allocations.
Bondora Review: How to Credit your Account and Minimum Investment Amount
The site works just like every other P2P site where people ask for their requirement in loans, and Bondora will source the investors who can fund that loan. Most of the loans are of smaller values. This enables users to provide loans to thousand of loans, in different countries at different levels of risks. Once borrowed loans can be paid on a monthly instalment into a virtual account. Bondora claims that their minimum to invest is 5 Euros, and says that their average Return on Investment is 18.75%.
That true, my portfolio after 1,5 years. I only make 1000€ deposit on september 2015 and that the result in juny 2017.
If you do not want to have more money in the market, you can credit it back to your bank account or even sell it to another investor. Most investors make their money and exit from the initial amount of capital that they had included.
Bondora Review: Repayment
Imagine being able to get a loan using your smartphone. This is one of the reasons Bondora is becoming a popular way of funding financial requirements across Europe. You can apply up to a maximum of 10,000 Euros and a minimum of 500 Euros, and choose a repayment plan that spans from three months up to a period of 5 years – their attractive interest rates start from 9%.
There will not be a standard additional fee for early repayments and you can choose your own monthly repayment. All this can be done without having to visit a bank or a physical location. This is a very convenient considering the red tapes and documentation you would have to face if you were opting for a regular loan through a bank – the convenience here is that you can simply manage your account and with minimal documentation that involves proving your identity and verifying your bank details you would be able to set this process up rather simply.
There is no provision fund allocated, however, you would be able to access the secondary market without having to pay any additional fee.
Bondora Review: Cost of the Services
There are no fees for investing in the primary or secondary markets.
There are, of course, a few costs that investors would need to bear from recovery. One such cost is the component of debt servicing. It is deducted from the cash flow (gross) that is recovered for the servicing of a portfolio that is delinquent. This is usually comprised of state fees, legal fees, success fees, court fees, and other types of costs that are directly related to the delinquent portfolio. These are what would appear as the partial write-offs in schedules concerning repayment.
In the event of an overdue or defaulted loan, the write-offs are made based on the gross funds. For instance, if there was a need for a loan recovery to be made with the help of the bailiff or with the help of third parties, then this cost would be added to the cost. If in the event that there is no recovery, deductions will not be made. Such costs are based on the delinquent portfolio level, that the conditions of the specific loan do not apply at the point of debt collection. Therefore Bondora can keep the deductions are a minimum and would not burden an already overwhelmed investor.
This cost may be reviewed from time to time, ensuring that it is maintained in alignment of the market costs (actuals). As of the latter part of 2016, the repayment level on average has been 13.1% and in August that year, investors requested many court cases for higher recovering which resulted in an increase in the Debt Servicing Costs. This value is usually maintained at 15-35%, but, it could fluctuate when there are recovery and collection processes.
Bondora Review: Condition for Lenders
Before going any further, we must understand what the attraction of this Peer to Peer system is, and how and why they are becoming popular in many markets – one of the biggest reasons is that it brings together a host of investors and lenders on to a common plateau that empowers them to transact without the hassle of the middle man. There is also the influence that technology has brought about with dynamic ways of managing investments and allowing market conditions to determine your earnings.
It’s not just about the excess or the bulk investment opportunities, it’s being able to diversify your risk in a market where your stocks yield you a bare minimum.
Bondora Review: Risk
As with any investment plan, there is an element of risk. However, with Bondoras, it is a deep dive into risk for those who want to have lending included in their portfolio. What would appeal to the investor is the lack of the red tapes and any form of embargoes present with middle-men. With any form of investment there would be an element of risk, however, we see that there are conventional ways in which this can be resolved within the boundaries of the system.
The risk is usialy not zero, bondora has is own classification of risk.
Bondora warns, and I think it’s important to remind the reader too: when you lend money you have a risk of capital loss and it requires a lock-in of your savings. Once that was in my head, I chose to follow Bondora’s recommendations in terms of investment strategy, which seemed to me to be very relevant.
Bondora Review: insurances and warranties
The capital you lend on bondora Has no warranties, they is also no insurances in case of loss.
Bondora Review: return
Bondora has a hight return depneding on the risk you want to take.
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Bondora Review: The Interface
Bondora’s interface, API, allows investors to choose their approach. Investors are given the freedom to customise their strategy by reviewing the granular reporting system. With this, you are given the liberty of reconfiguring the DNA of the investment portfolio so that it makes the most for you.
The detail orientation of the investors who can bid for loans by far allows many types of engagement that is based on a more passive approach. The Bondora API has the potential to be a system that can tailor make the risk profile fact and enable speedier services for loans and investments.
Bondora Review: Conclusion
With Bondoras, one thing is very clear – they make sure that their success is your success. What they do can be classified as P2P lending, crowdfunding, Marketplace Lending, or Peer to Peer Lending, whatever it is known to be one thing is evident, it is an investment platform that allows credit-worthy borrowers meet individuals who are able to connect with investors who can assist them with their financial needs in the long run.
A big performance against a significant risk, however I earned well on this site.
Experience in good times and bad. As new and fresh as this concept may be, there are a few other contenders in the market who claim to be better at what Bondora does, but this is highly unlikely given that the latter has over eight years worth of experience and its rivals have higher lending rates. Bondora has a success story that teaches how to value even the smallest of loans in such as way that you can maximise your returns every step of the way. The risk is obviously present in every case, however, there is a large return on it that make it a worthwhile investment. All its projects appear in a comprehensive interface where all the components of the loan are filtered.
You can see all that you need beforehand before even considering to invest. However, the returns are high enough if in the case there is an odd customer that would default payments.
The interface, called API, is known to be one of the clearest channels that communicate with both lenders and investors. You can make your exit and lower your capital invested if you want to minimize risk, but on average each lender will earn far higher interest in a mobile / liquid way of retaining assets in a market where banks offer rather unattractive market rates. The system is geared to automatically invest, but if you want to test this tool first, then it is recommended that you switch to Portfolio Manager Mode, which is when the investments are made manually.
With Bondora’s P2P lending system, you can benefit in two ways if you play the game right. You can have returned as well as capitalise investment. With these odds, you will be able to achieve your long-term financial goals. Bondora also gives you the added benefit of being able to lend and borrow despite any economic slumps that the market is experiencing, and it is a consistent rate.
Bank on Bondora’s stellar performance and financial growth to see how you, too, can experience this reliable crowdfunding method. If you still think of whether you should be investing in such new-age financial systems, why not join the other 27,000 investors out there who have just done so themselves?
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