Wisefund - P2P Lending Investment Review
What is Wisefund?
Wisefund is a peer-to-peer crowdlending platform where individuals and companies that require financing are connected to investors. One thing that attracts most investors to these loans is that they have a higher interest rate compared to bank loans. Currently, Wisefund offers an average rate of return of about 18.07% on investments.
It is important to note that Wisefund is still a new company, having been launched in early 2019 by Olga Bobrova. The company has its headquarters in Estonia and hopes to continue helping companies to get funds to accomplish their projects.
How does Wisefund operate
Wisefund has invested heavily on technology to connect lenders and borrowers without the need for a bank. The platform assures its users of getting good returns by investing in the platform.
Investing in Wisefund
Every investor that wishes to earn more has to diversify their investments. You can either go into cryptocurrency real estate or forex. Not only does diversification help to give you a broader source of income, but it also reduces risks.
Wisefund makes it quite easy to invest in it if you meet all the requirements which are quite basic; you have to be 18 years and above and should be a bank account holder within the European Union. If you meet the requirements, the registration process is quite easy and does not take a long time. You will only need to provide your contact details and some personal details to have an account.
Once verification of the details provided is complete, you can now deposit funds and invest in any project that you find fit. There are several projects listed on the Wisefund site, and each project shows the company name, details of the project as well as the amount needed to complete the project. It is essential that you take your time when evaluating the available projects so that you invest in one with the lowest risk and the highest returns. Always remember to diversify your investment on different projects.
Features of Wisefund
Wisefund has the best guarantee system for its investors which ensures that investors can feel safe when investing. The loan guarantee is offered in three types; guarantee for early exits, buyback guarantee and protection fund.
Guarantee for early exits
There are times when you may require to access your funds immediately, and Wisefund understands the importance of that. That is why they have partnered with a third party to offer a buyback guarantee for such scenarios. This guarantee comes at a fee, and it is completed within two days upon request. Every loan listed on the site has a different early exit fee depending on the nature of the project.
Although Wisefund carefully analyses all projects before listing them on their site, there is still a chance for some risks hence the need for a protection fund. This fund is derived from the profits made by each loan, and the collected amount is used to protect the interests of all users on the Wisefund platform. It is important to note that the fund only covers any legal costs that may accrue while pursuing a defaulted payment, and also pay for profits on your investments.
Third-party Buy Back Guarantee
Wisefund ensures that all its loans are ‘insured’ with a third-party company so that all loan defaults are covered. The third-party buy out 100% of the principal amount once the loan has defaulted for more than 60 days. It is important to note that this guarantee will not cover any interests that had not been paid.
All the projects submitted to Wisefund are carefully analyzed and verified before they are brought to investors. This helps to lower risks and ensure the success of the investments.
Repayments and schedule
Loan repayments on the platform commence a month after investing in the project. It is also important to note that the interest accrued is calculated immediately you place your investment and not when the project has fully received funding. The investor’s dashboard shows the accumulated interest over the month.
If you invest in a project and the project fails to get the required funding, all your money is credited back to you without interest.
Just like other P2P lending sites, Wisefund does not charge any fees on investors. The company earns its profits through the commission received after a project has received full funding.
The withdrawal process on Wisefund is quite seamless. You only have to click on the withdraw button, input the amount that you want to withdraw, and you receive your money.
It is important to note that Wisefund does not have an auto-invest tool.
What are some of the risks associated with investing in Wisefund?
- Company risk; as already stated, Wisefund is still a small company and therefore faces start-up challenges like losses and funding issues. This means that most of your investments may not take off as projects will not receive full funding.
- Online security risk; Wisefund operates online, and that makes it prone to hacks. There is a chance that your account may be hacked.
- Default risk; this is a risk that’s with all peer-to-peer lending sites. Companies that you invest in may fail to pay back your money. However, there are several ways through which you can get back the money, legally and with the help of Wisefund.
- Unregulated; the business model that Wisefund uses does not require any regulator. If the company decides to act in bad faith, there is a risk of losing your investments.
Pros & Cons of Wisefund
Though a relatively new company, Wisefund is rapidly growing and promises to become a significant player in the P2P industry. This is evident from its statistics; it already has 1749 investors on board, has funded projects worth 2,995,000 million euros.
With the risks aforementioned still affecting the company, it is advisable that you only start with a small investment to avert any huge losses. Diversify in the platform and follow the best investing strategies.