Bondora P2P Review – Anything is Possible

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This Bondora P2P Review warns you to be careful with this peer-to-peer platform.  While you can get very high, you could also lose money easily.

Bondora is a solid platform that has operated for 11 years or more.  Even though it’s easy to set up guaranteed investments at 6.75%, to get higher returns you need to know what you’re doing.

Bondora Locations and Contact Information

We found two office locations for Bondora:

Main Office:  A.H.Tammsaare tee 47, Tallinn 11316, Estonia (You can see their location here.)

Finland Office:  Urho Kekkosen katu 4-6E,  00100 Helsinki, Suomi (This is a flex office shared by many companies.)

(I saw something rather odd today.  While looking up information about CrowdEstate, I came across a Bondora webpage comparing itself to Crowdestate.  Subsequently I also clued in to the fact that BulkEstate also has a registered location at the same address as Bondora.  I remain curious, as neither BulkEstate nor Bondora has made any connections public.)


Background Review of Bondora P2P Platform

Headquarted in Tallinn, Estonia, Bondora was launched in December 2007, making them a well-established company.  Subsequently they started offering loans in Estonia, Spain, and Finland.  The average loan interest is 35.2% with average returns at 10.7%. That being said, it’s unnecessary to point out that default rates are high. They’ve issued more than 240 million Euros worth of loans. Currently Bondora has more than 70,000 investors.

According to Pärtel Tomberg (view on LinkedIn) founder and CEO of Bondora, the company started in his dorm room in December 2007.  After finding investors from Germany and the U.S., Bondora has grown to what it is today.


Bondora P2P Review - The Four Strategies

Three auto-invest strategies exist on the Bondora platform.  Additionally a  fourth strategy entails manual investing, usually through the secondary market.

The "Most Popular" Go and Grow Strategy

Bondora’s Go and Grow strategy features secured returns and fast access to capital.  That means if you need to place to park funds for shorter periods of time, this could be for you.  However, one important aspect is the fact that you need to pay a fee for withdrawing from this strategy.  Even though the fee amount to only € 1, many of us simply don’t like fees of any kind.  When you’re investments are bigger, this fee will become smaller as a percentage.

The 6.75% is certainly not the highest in the crowdfunding world.  However we should remember the benefits that come with it.  The guaranteed returns you can get elsewhere with a much higher return.  On the other hand, not that many P2P platform give you almost instant access to your cash.

The Portfolio Manager and Portfolio Pro

These two strategies give you access to higher returns.  That being said, you are longer covered by any guarantees.  There isn’t a great big difference between the Manager and the Pro.  With the Bondora Portfolio Manager you use a slider to choose risk and reward.  With the Bondora Portfolio Pro you can handpick loan rating, term,and country.

You can mix and match the settings, tailoring to your needs.  Additionally Bondora provides abundant information for you to research.  Above all, it’s up to you to know if you’re comfortable with your investments.

The Secondary Market

In the secondary market you can buy other people’s loans or whole portfolios.  Keep in mind that you pay a premium for some of them.  This same market can, of course, also be used to sell off your own loans at par, with discount, or a premium.  What is mind-boggling is the fact that you can find loans with interest rates exceeding 100% here.

This is where some investors end up with average rates of returns higher than 30%.  It is the same place where others lose some of their money.

“At the other end of the range are places such as Bondora that do lending to less credit-worthy customers, with default rates varying up to as high as 70+% for loans made to Slovak borrowers on that platform, well above those of its original Estonian market.” (Source Wikipedia article).  With that mind one should seek higher returns with caution.

Bondora P2P Review - Comparison of net returns for different Bondora investors

Our Bondora P2P Review is not quite finished yet.  There will be more coming.

A Look at Safety of your Bondora P2P Cash

Should we be worried about our money at Bondora? To answer this, we need to look at how you’re investing.  To make a long story short, your money is quite safe in the Go and Grow portfolio.  Any funds outside of that have different degrees of risk.  Consequently you can invest very safely for a 6.75% return.

Furthermore about 30% of investors are getting returns above 10%.  While remembering around 10% of people have lost money with Bondora, others less greedy are doing fine.  Above all, proceed with caution, as decent returns are quite possible with Bondora.  Spread your risks wisely!

Other Platforms to Consider

If the Go and Grow feature interests you, you might also consider Mintos and RoboCash.  You can read our Mintos P2P Review here.  Likewise our RoboCash P2P Review is available here.  In conclusion, there are a number of good platforms with better returns.  However, this very much depends on your needs.  In other words, I would recommend Bondora for some investors.  Most of my Bondora funds are in the Go and Grow fund at the moment.  About 10% resides in the Portfolio Pro strategy.  As a result, I’m not completely satisfied yet, as I will need to re-balance.  After that’s done, I may well get what I’m looking for.

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