A Complete Review of How to Invest in Twino P2P Marketplace

Twino is an award-winning European p2p investment marketplace marketplace that connects investors and borrowers. Investors can be individuals or corporations. The company, which is one of the fastest-growing P2P organizations, has more than 18,000 investors who are drawn from Europe. The company has given out loans worth more than a billion euros. In this review, we will look at how Twino works and how you can invest in Twino.

 

 

Quick Twino Review

  • Twino has given out loans more than a billion euros.
  • Twino investors have earned almost €10 million in interest.
  • Twino default rate is about 6%.
  • Average annual return is more than 11%.

What is Twino?

Twino is a peer-to-peer lending marketplace that helps solve important challenges facing borrowers and lenders. Borrowers are having the challenge of raising money from banks. This is because banks are afraid that lending money to ordinary borrowers is not worth the risk mostly because of the low interest rates in the market.

Twino, and other P2P lending marketplaces like Lenndy, IBANWallet, and Mintos help solve this problem by creating a platform where borrowers can access money easily. Investors like you can then extend these funds to these borrowers and earn a return.

People have always extended financing to family and friends. However, this usually has a problem because of how difficult it is to ask your money back. Twino removes this friction by creating a secure platform where you can find pre-vetted loans and invest in them. The screenshot below shows how Twino works.

What is Twino
How Twino works.

How to Invest in Twino

As an investor, the process of investing in P2P platforms is relatively easy. All you need is to create an account, submit documents, deposit your funds, and then start investing. Twino minimum investment is 10 Euro.

This is the same method that you can use to invest in Twino. First, we recommend that you visit the website and see more details about it. You should also use the loan estimation tool to see how much money you can make.

After this, you go to the registration page and enter your details. You will need to select whether you are investing as an individual or as a corporation. Also, we recommend that you read the terms and conditions and privacy policy.

You should then verify your documents, deposit your funds (in euros or sterling), and then start investing. You should take time to evaluate the available loans. Look at the loan rating, duration, loan status, and expected return.

As with most P2P platforms, investing in Twino is free. The company makes money by charging the borrowers.

Twino Payment and Buyback Guarantee

P2P companies benefit when investors benefit. As such, the company has put in place measures to protect its investors. Twino payment guarantee is a feature where the company compensates investors the invested capital and earned interest as per original loan repayment schedule when the lender is late.

Twino buyback guarantee compensates investors for the invested principal, interest, and the accrued interest if the borrower is late for over 60 days. These two does not cover loans that are rated at A, B, and C.

Twino Currency Exposure

Twino Currency Exposure allows you invest in loans that are pegged to the loan issuing country’s local currency. Currency Exposure is available for the loans that come from Russia, meaning that you will be exposed to EUR/RUB or GBP/RUB currency pair fluctuations, depending on the currency registered on your TWINO account.

Here is an example – you invest EUR 100 in a 1-month loan with the Currency Exposure, which is the equivalent of RUB 7,000 (EUR/RUB 1:70):

After a month EUR has appreciated against RUB and the new rate is EUR/RUB 1:75. Therefore, you receive principal of EUR 93.33 + interest for one month.

After a month EUR has depreciated against RUB and the new rate is EUR/RUB 1:65. Therefore, you receive principal of EUR 107.69 + interest for one month.

Twino Fees

Twino does not charge investors any fees. Twino makes its profit from the spread between the interest rate charged to borrowers and the interest rate offered to investors. This means that registration, adding funds to your account, and withdrawing funds from your account is free.

Benefits of Investing in Twino

In this article, we covered some of the P2P companies to use and highlighted some of the benefits of investing in the industry. The same benefits apply to Twino. Here are some of the key benefits of investing in Twino.

  • Buyback and payment guarantee. These two features improve the safety of investing in the company.
  • Proven track record. Twino has a proven track record having invested more than a billion euros.
  • No currency risk. Twino only accepts euros and pounds to help protect investors from currency risks.
  • Superior returns. Twino has an average annual return of 10%. These are better yields than most other investments.
  • Easy to use. Twino has an easy-to-use platform than most other P2P companies.
  • Free. Twino charges no fees to investors.
  • Transparent. Unlike other P2P companies, Twino publishes its financial statements. It made a profit of more than EUR 12 million in 2018.

Cons of Investing in Twino

Twino is without a doubt a good company. However, like all peer-to-peer lending companies, there are some risks of investing in the company.

  • No secondary market. Twino does not have a secondary market. This means that it is difficult to exit your investments.
  • Regulation changes. Twino operates in a number of countries where regulations may change.
  • Security risks. All peer to peer lending companies have security risks, meaning that they may be hacked.
  • Recession risks. P2P companies have not been tested in periods of recessions. It is not clear that most of them will survive a recession.

Twino Countries Available

Twino has been growing rapidly. The company operates in Latvia, Poland, Russia, Georgia, Denmark, Spain, and Kazakhstan as shown below.

Twino countries
Twino countries.

Twino Contacts

Twino Reviews

Twino reviews on Trustpilot are mostly positive. 59% of reviewers enjoyed the service giving it a 4 start while 12% considered the service bad. Common complaints include poor customer service, slow Twino auto invest, and poor returns.

Twino Alternatives

Other p2p lending marketplaces you can consider investing in include:

Twino Summary

Twino is one of the best peer to peer companies in Europe. The company has an excellent and easy-to-use platform, excellent returns, and a proven track record. Therefore, if you are interested in investing in P2P, Twino is a good company to invest in. Always remember to diversify your loans in Twino and to also have investments in other assets such as stocks, bonds, Bitcoin and in index funds.

Crispus is a finance professional with more than a decade experience in the industry. Over the years, Crispus has written in-depth articles on leading platforms like CCN, Marketwatch, and Seeking Alpha. He also runs a Forex education and managed account company called WestEndFx.