Lenndy is a platform for peer-to-peer lending for investors. It helps individuals and companies raise money from ordinary investors using the internet. Lenndy acts as a platform that connects lenders and borrowers through a loan originator. The company has been in the industry for more than two years and has seen rapid growth. In this article, we will look at how to invest in Lenndy and everything you need to know about the process.
We do not advise you to invest in this platform. There is no guarantee that Lenndy will be around in the p2p lending market for a long time. Recently, the platform issued a warning to its investors saying that it is changing its business model and will no longer sell loans secured by the BuyBack guarantee.
Quick Facts About Lenndy
- Lenndy was started by Donatas Šatkauskas in 2017.
- The company is headquartered in Riga, Latvia.
- It has helped investors raise more than €38 million.
- Lenndy has helped more than 8k investors from around the world.
- Average annual interest rates is 12.34%.
Why Lenndy Was Started
The world of fintech has seen significant growth in the past few years. Rapid technology growth has come at a time when most people are having difficulties generating returns in their savings accounts. This has been the case in most countries in Europe where interest rates are negative. With interest rates so low, banks have been afraid of lending money to ordinary investors. Lenndy was created to create p2p investment ecosystem that connects lenders, borrows, and loan originators.
What are the Bnefits of Investing in Lenndy
Investing in Lenndy loans has several benefits. Here are some of the main benefits you gain by investing in Lenndy.
- Safe investments. Unlike other peer-to-peer lending companies, many Lenndy loans are backed by collateral.
- High yields. As an investor, you gain better returns when your money is invested in Lenndy. In some countries, you actually lose money when you save your money in the bank.
- Diversification. As an investor, diversification is very important. It is important because it increases your sources of income.
- Easy process to invest. It can take you less than 30 minutes to have your account set up and start investing.
- Free investing. There are no fees for you to invest. The company makes money by taking a cut from the borrowers.
- Multiple type of loans available. There are several types of loans, which include personal loans, invoice financing, and business loans.
What are the Risks of Investing in Lenndy
There are several risks that come with investing in Lenndy. Some of these risks are:
- Online risks. Lenndy is an online company. This means that its systems are entirely online. There are risks such as hackings.
- Liquidity risks. There are liquidity risks because you cannot withdraw funds after making an investment.
- Company risk. When you are transacting with any company, there are risks that the company may get into financial trouble.
- Default risks. While loans are backed by collateral, there are default risks.
How to Invest in Lenndy
The process of investing in Lenndy starts with a borrower, who is represented by the loan originator. The originator conducts intensive background study on a borrower. They then assign a risk factor. Those who can pay easily are given a better risk factor than those with high-risk of default. The former pays lower interest rates than the latter. Registration on Lenndy as an investor is a completely free service. By investing in loans, users do not pay any fees to the platform.
Once approved, Lenndy lists these loans on its platform where investors like you can look at them and invest. You can invest as little as €10 in an investment. You can also use the automated platform that helps you create a diversified portfolio.
Before you invest in Lenndy, it is important that you consider the following:
- Invest a small amount of your portfolio in Lenndy.
- Invest in multiple loans.
- Do your research about originators.
- Diversify across multiple peer-to-peer platforms like EstateGuru, Bondora, and Bulkestate.
How to Deposit Funds Into Lenndy
Lenndy supports SEPA money transfers from financial institutions in the European Economic Area. If your bank does not use SEPA transfers, you need to contact their investor service team to find the best way for you to deposit your money. Alternatively, you can open a non resident bank account in Europe.
Lenndy Supported Countries
Lenndy website is protected by Secure Sockets Layer protocol, a globally recognized security technology standard used by sensitive institutions including banks for the security clients’ data. The lending marketplace performs regular third-party audit of safety standards. Lenndy accepts investors from around the world. You just need to pass the original verification test. Also, you need to have a bank account and deposit your funds in euros. If Lenndy goes bankrupt, the Lenndy bankrupt administrator will transfer the servicing of all loans and investments to an appropriate manager.
Is Lenndy Safe?
Lenndy account deposits in LHV Bank of up to 100,000 EUR are protected on account of the Deposit Guarantee scheme. Lenndy website is protected by SSL protocal, a globally recognised security technology standard used by sensitive institutions such as banks. Moreover, the lending marketplace performs regular third-party security audits.
If Lenndy platform does not meet your specific needs, these are some of Lenndy alternatives you can invest in:
Final Thoughts on Lenndy Review
Lenndy is an ideal platform if you want to invest in security-backed loans. The company has seen significant growth over the years. If you are into online lending, we recommend that you give Lenndy a try. As we mentioned, ensure that most of your investments is in assets like index funds and stocks. Also, ensure that you have invested in other high-risk, high-reward assets like Bitcoin.
- Lenndy website: www.lenndy.com
- Lenndy email address: [email protected]
- Lenndy phone number: +370 (5) 214 1205 (LT)+44 7480 775818 (UK)
- Lenndy on Facebook: Lendy Marketplace
- Lenndy on LinkedIn: Lenndy