PRETUP review

Pretup is a french crowdlending website that started its activity in May 2015. A subsidiary of Partners Finances, a brokerage leader belonging to the Mentor group, it enjoys ORIAS approval. Here is an opinion that could be useful if you plan to invest on the platform. It is based on an experience of more than 5 months with Pretup.

Main characteristic

 

•     French website
•     Return : about 5%
•     Regulated : Yes in France
•     Second market: no
•     Guaranty: no

Pretup review: inscription

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Opinion on the rate of return and the duration of the projects

 

Pretup stands as the crowdfunding platform allocating the highest average rates. Its investment periods are also relatively short. Indeed, the platform can guarantee a return of 8.31% over a period of only 25 months.

 

In other words, Pretup stands out from the crowd in terms of performance. Note that the longer the investment period, the better the returns. Another major advantage of the platform is that it offers all its lenders free insurance.

PRETUP review: the number of projects

 

Insufficient number of projects is one of the biggest weaknesses of many Crowlending platforms. However, for a financier, it is very important to access a wide range of investments. In addition, most lenders want to reinvest immediately the amount the platform pays them each month. At many Crowlending sites, the wait is sometimes long before a new project comes up. To be able to invest, one must act quickly, because the call for investment risks being completed in only a few hours.

 

At Pretup, it is possible to find 4 to 10 projects per month. Obviously, investors are still hoping for a rise in funding requests, especially since the amount of loans is often low, around € 20,000. It is not surprising that the project is quickly completed. An increase in the number of lenders could also improve the data.

 

 

 

Statistics

 

At Pretup, statistics are growing rapidly. They evolve at any moment. Currently, a few dozen projects have already been proposed. The platform lists about 3900 investors and the amount of loan granted reaches 160000 € .

Opinion on the Platform Interface

 

The Pretup platform has a quality interface. It is both simple and pleasant, which guarantees a perfect visibility to users. All projects presented on the platform also include detailed information. Other than rates and duration, each ad includes:

 

• a presentation of the company
• a description of the project to be financed
• a balance sheet
• the list of investors (names and sums invested)

 

Lenders also have the right to ask questions.

 

Pretup is also an easy-to-use platform. Each investor can lend in 1 click. They only have to enter the amount to invest and validate it. When the funding offer is approved, they can download the contract and official documents from their personal space. The procedure is quite simple compared to the system introduced by Lendix. The latter is highly secure because it includes placing an electronic signature on the contract and sending a validation code via SMS. It’s up to you to choose between the security offered by Lendix and the ease of use guaranteed by Pretup.

Advice on the provisioning of the account and the amount of the investment

 

Pretup investors can fund their accounts in two ways:

 

using a blue + 3D Secure card

via a bank transfer

 

You can take part in the financing of each proposed project. The amount of the authorized investment varies between 20 and 2.000 €. Initially, the platform has set a maximum funding ceiling of € 1,000. But a law, which allows individuals to invest up to € 2,000, has been put into effect. Here is a peculiarity of Pretup: it allows lenders to lend amounts that are not part of multiples of tens. This is important when you decide to invest the money back each month.

Pretup review : Refund

 

Investors are entitled to a monthly refund. The amount paid includes a portion of the principal and interest.

Pretup Insurance Opinion

 

Above all, it should be noted that few platforms offer free insurance to its investors. Pretup is one of them. The guarantee covers 100% the risk of death and disability of the manager of the company that applied for the loan. The insurance also protects the lenders against a possible failure of the financed company. The guarantee offered can be up to 50% of the amount loaned over a period of 18 months. Note that all projects funded since 2016 are eligible for this insurance.

 

What is surprising is that access to this free insurance has no impact on the rate of return. Indeed, it remains high. However, we know that such a guarantee has a price and it should have had a consequence in terms of performance. But this is not the case at Pretup.

 

However, it must always be remembered that the best guarantee for an investor is to always diversify his investments.

Pretup review service charges

 

Like all other crowdfunding platforms, Pretup does not charge registration and management fees to lenders. It is remunerated via the commissions awarded by the companies financed.

Pretup review : the risk scale

 

The thing to keep in mind is that Crowlending is an investment medium like any other. Thus, it involves a risk. Its importance differs according to the projects. Each platform is required to make an assessment and give a rating. Pretup is no exception to the rule. She did set up a risk scale. In addition, it verifies the financial soundness of the company submitting a project to be financed before awarding a rating. She may be :

 

• To: very low risk
• B: low risk
• C: moderate risk
• D: high risk
• E: very high risk

 

The problem is that this risk scale is not visible on the project sheets. In order to identify the reliability of a project, lenders must be content with the following three notes:

 

• Low
• Moderate
• High

 

 

So far, Pretup has never faced defaults. However, the platform has already notified its lenders about 3 non-regularized payment delays. Of course, the amounts are relatively low, about € 2877.33 on € 1.346.857 to pay.

 

If this type of incident recurs, Pretup collaborates with a collection company. Thus, it can sue the company that has not honored its legal commitment.

 

It should also be noted that Pretup included a sunset clause in the contract it signed with its payment provider S-Money. Thus, if the platform breaks down, the financed companies can settle the deadlines with S-Money. The latter will take care of repaying the lenders.

 

Pretup review :  transaction security

 

As mentioned before, Pretup is working with the subsidiary of the People’s Bank Caisse d’Epargne, S-Money. It is this provider who takes care of the security of the transactions. He also has a role to play in loan repayments in the event of default by Pretup.

 

The funds paid into each investor account do not pass through Pretup’s bank accounts. In fact, they are cashed immediately by a provider approved by the ACPR (Prudential Control and Resolution Authority). In addition, lenders remain the only owners of the money deposited on their account until they have validated a loan offer.

 

As a reminder, Pretup does not require special validation for each investment made. Which is the case of Lendix. So, take the time to properly close your account after each visit.

 

Finally, Pretup ensures that the hosting of the data is based in France.

Pretup review :  reporting and statistics

 

The reporting attributed by Pretup remains more or less complete. He understands :

 

the list of projects in which you took part

information on the next deadlines

account statement

tracking any defects or late payments

access to all your confidential data

individual statistics on investments made on the platform

tax records

 

Other benefits to enjoy:

 

the privilege of downloading all contracts with one click

export future payments

 

However, it is impossible to access the statistics of the overall performance of his portfolio, which is really a shame.

Notice on communication with Pretup and the project leaders

Pretup review : Relationship between lenders and Pretup

 

The crowdfunding platform remains in contact with its investors and stands ready to answer all their questions. It proposes various means of exchange namely:

 

the lender FAQ

the Facebook page of the Pretup

the Pretup Twitter page

the customer service can be reached with the number 03 83 41 64 52

the contact email : contact@pretup.fr

the contact form

the Live or Deferred chat that you can find on the platform’s homepage.

 

Note that the chat gives lenders the privilege of communicating directly with a Pretup staff or leaving a message. In case you have submitted a message, the platform team agrees to send you an answer by email.

 

In sum, Pretup deserves a good point in communication.

Pretup review : Relationship between lenders and companies to finance

 

On each project posted on Pretup you will find a Questions / Answers tab. This is a function put in place to allow lenders to ask a question to the company they plan to finance. However, it is rarely used. As a result, it is impossible to evaluate its effectiveness. In addition, one can not really know if the answer comes from the company itself or from Pretup.

Pretup review : Discussion Forum

 

Indeed, the platform has a discussion forum. So you can ask questions or share your experience on this exchange portal at any time.

Sponsorship Notice

 

Pretup allocates an exceptional sponsorship offer. It allows lenders to pocket a bonus of € 20 for each investment of € 200. This represents an immediate gain of 10%. 0JWN5CH1

 

 

 

Pretup Reviews

 

goods:

 

• best interest rate
• short investment period
• quality interface
• lend in one click
• free “lender” insurance
• a wide choice of means of communication
• accommodation in France
• payment guaranteed by S-Money
• excellent referral bonus

bads :

 

• insufficient projects
• amount of projects rather low
• risk scale not visible on projects
• only in french

PRETUP review Conclusion

 

Pretup is a very interesting Crowlending platform. We can say that she is one of the best. It offers the best rates for a very short investment period. Pretup’s only effort is to increase the number of projects with a large amount.