FinBee - P2P Lending Investment Review

FinBee Overview

  • Average Return: 18%
  • Buyback: No
  • Min. Investment: €5
  • Loan Terms: 1-60

FinBee Index

What is FinBee?

FinBee is a Lithuanian peer-to-peer lending platform that allows investors to invest in business and consumer loans. It serves as a loan originator and also as an investment platform. FinBee allows investments from as low as €5, a relatively small amount compared to other platforms that require a minimum of €10.

What type of loans are offered by FinBee?

This (FinBee) P2P lending platform majorly offers two types of investment products; consumer and business loans. It is important to note that FinBee only used to provide consumer loans before it ventured into business loans. The two types of loans have been discussed broadly below.

  • Business Loans

For a business to survive, it has to have a working capital that’s enough to run operations. However, there are times when capacity is low, and the business is forced to take a loan. The business loans offered by FinBee range between €1000 to €500,000. The loans take up to 60 months. 

Business loans issued by FinBee are unsecured which makes them high risk loans. Additionally, there is no buyback guarantee or any way that an investor can cancel their investment. However, FinBee ensures that it evaluates all the investment loans accurately before making them available for investors. 

The loans are graded according to their risks, with A being a low risk and D being a high-risk loan. The grading is done based on the financial stability of the business being loaned, the reputation that the management has, and the current market situation. The common business loans that investors can invest in include employment, working capital, premises, and growth funding.

  • Consumer loans

Having launched as a consumer loan originator, FinBee is well known for having a wide variety of consumer loans. FinBee also offers to refinance loans to individuals with expensive loans. The loan amount on most consumer loans lies between €300 to €10,000 with a loan term of up to 60 months. Just like business loans, consumer loans are also unsecured. Persons can take this loan to buy a car, a Television, or pay for their tuition fee.

Who can invest in FinBee?

The requirements to become an investor on FinBee are similar to other peer-to-peer lending platforms. One has to be 18 years of age and must have a bank account within the European Union. You will also have to provide additional identification documents like your national identification card.

With the possibility of lenders giving out a minimum of 5 euros, investors also have the chance to invest such amounts on different loans.

How much can one you earn on FinBee?

There is no fixed amount of income that one can earn on FinBee. It all depends on the interest rates on the projects you invest in. The projects have different interest rates ranging from 18% to 25% annually. The higher the risk, the higher the interest rate on loan, and the lower the risk, the lower the interest rate on loan.

How to invest in FinBee

Once you finish filling the registration form, you will be required to answer a KYC questionnaire and then deposit some funds to your account. You can deposit money to your FinBee account through a bank transfer, and when doing so, ensure that you include the reference code displayed on the FinBee website. Once the funds reach your FinBee account, you can either choose the projects to invest in manually or use the auto-invest tool.

Features of FinBee

  • Auto-invest tool

 

The auto-invest tool is vital as it helps investors to save on the time that they would have used to select projects to invest in manually. One unique thing with FinBee is that it offers three auto-invest tools that investors can use. Each tool is appropriate for projects with certain risk levels. The tools include:

  • Conservative- the conservative portfolio provides loans to both high-risk and low-risk loans. The major drawback of this auto-invest portfolio is that it offers relatively low returns. But on the bright side, it has the lowest rate of risk and an interest rate of about 12%.
  • Balanced- the balanced auto-investing portfolio offers money to diverse risk loans. The average rate of return that you should expect from this portfolio should be between 15% to 19%.
  • Progressive- the progressive auto lend portfolio bears the highest risk of all the three. Its average rate of return stands at around 19-23%.

 

  • Secondary market

 

FinBee provides a secondary market for those investors that wish to sell their shares on the loans before the loan term is complete. However, one has to pay a 1% fee when using the secondary market.

 

  • Loan requests
  • As an investor, you get to choose a loan with favorable terms. You get to select the type of loan, the amount, the loan term. For most consumer loans, the interest rate is at 18%, and business loans have their interest rate starting from 6%.

  • Investment risk
  • Any good peer-to-peer lending platform has to seriously consider how their investors can maximize returns while minimizing the risks. FinBee understands this concept very well, and that is why they have only partnered with borrowers with good credit scores and have a good risk management system. FinBee has put in place some measures to ensure that the borrower qualifies for a loan; the loan requested cannot be more than 4% of the borrower’s net income. The site also considers the borrower’s age, education level, and employment history before making them legible for a loan application.

Pros & Cons of FinBee

Pros
  • The platform offers relatively high-interest rates
  • A meager minimum investment is required
  • Collaterals secure some of the loans
  • It provides auto-invest and a secondary market
Cons
  • There is no buyback guarantee
  • The platform has a high default rate of above 5%
  • It charges a 1% fee for investors that wish to sell their loan investments on the secondary market

Conclusion

FinBee is a good P2P company that has helped bridge the gap between borrowers and lenders, and it is worth investing in. Ensure that you diversify your investment on various loans and also start with a small amount considering the risks that every loan has. Register today on the FinBee platform using the link below.

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