Flender

Flender Review

I started using Flender in March 2018. Since then, I have invested in all opportunities, always the minimum per project (50 EUR), except for 4 projects in which I invested more in order to take advantage of a particularly generous promotion (see the section on Return Rate). The platform is not too active and it takes months to invest a significant amount in a diversified portfolio. My strategy is to continue investing in each project. Check my portfolio analysis for the latest updates.

• Platform Type: Crowdlending to Businesses (P2B).
• Start: 2017, Ireland.
• Modalities: Fixed rate loans and relatively low amounts (a few tens of thousands of euros). Projects are loans to companies of all kinds. In February, Flender added risk category to projects based on each company’s performance during the credit review process done by Flender, with a grade ranging from “A”, which represents the lowest risk, to “V” for young companies that have been operating for less than 2 years.
• Geographic focus: Ireland.
• Currencies: EUR.
• Return rates: 10% on average, which can increase when there are specific offers available. For example, in July 2018 there was an offer whereby Flender gave you a 10% Bonus for each project where you invested 300 Euro or more (!!!), which raised the profitability of my portfolio dramatically.
• Investment flow / Cash Drag: Not very active. Only about 4 per month.
• Minimum investment (per loan): 50 EUR.
• Payment modality: The interest and proportional share of the principal get paid each month, which is excellent because it allows to reinvest in new projects.
• Terms: Long projects of 12, 24 or 36 months. Mostly 36 months.
• Defaults: You can check default rates and delays updated on all platforms on my last portfolio analysis. Flender charges a security deposit in advance from borrowers as additional security. If payment is delayed, Flender uses the deposit to ensure that lenders receive payment on time. When the borrower pays, it will top up the security deposit.
• Buyback: None, like other P2B crowdlending platforms.
• AutoInvest: The AutoInvest is called Autoflend. You can choose the term (6-12, 13-24, 25-36 months), the minimum interest rate and the amount to invest per project. There is an option to invest (or not) in a new campaign by a company that previously had a successful campaign in Flender. If you do not use AutoInvest, there is time to invest manually since the loans take a few days to get financed. The platform sends an email every time there is an opportunity.
• Secondary market: Doesn’t exist.
• Interface / Tools: Pretty basic: number of loans, average interest rate, accrued interest, and transactions (which can be downloaded in PDF and CSV formats).
• Taxes: It doesn’t withhold taxes.
• Customer Support: Whenever I have contacted them, they have always responded in less than 24 hours.
• Languages: English.
• Welcome promotion: 5% of the amount invested during the first 30 days with this link